The measure allows Australians aged 65 or over to contribute up to $300,000 from the sale of their home to super. You don't need to purchase another home to be eligible.
Contributions may be made even if the downsizer would not normally be allowed to pay into super, for example by no longer meeting the work test.
A contribution generally needs to be made within 90 days of the home being sold. To pay into your LGIAsuper account you'll need to notify us that the contribution is a 'downsizer' contribution to ensure it isn't assessed under the general contribution rules.
A contribution can only be accepted where the contract for sale occurs after 1 July 2018.
Contributions made under the scheme will be assessed as an asset for Age Pension purposes and may result in your pension entitlement being reduced or cancelled. You should discuss your situation with the Department of Human Services' Financial Information Service (FIS).
Your downsizer contribution is not a non-concessional contribution and won't count towards your contributions caps. The contribution can still be made even if you have a total super balance larger than $1.6 million.
Your downsizer contribution won't affect your total super balance until your total super balance is recalculated to include all your contributions, including your downsizer contributions, on 30 June at the end of the financial year. The downsizer contribution will also count towards your transfer balance cap, which is currently set at $1.6 million. This cap applies when you move your super savings into retirement phase.
You can read more about downsizer super contributions on the Australian Tax Office (ATO) website.
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