The downsizer contribution is available from 1 July 2018 and will allow homeowners to make a maximum $300,000 contribution to their superfund if the property was held for more than ten years as a principal residence. To be valid, the contribution has to be made within 90 days of the ownership change, typically 90 days from settlement.
Two additional features makes this very attractive under the new super rules introduced on 1 July 2017:
- The contribution is not counted toward your non-concessional contributions cap or impact on your 1.6million total superannuation pension balance; and
- The work test will not be required to be met to make the contribution