The reduction in the eligibility age to make a downsizer contribution to being aged 55or older is now law, with the Treasury Laws Amendment (2022 Measures No. 2) Bill 2022receiving royal assent on 12 December 2022.This further reduces the downsizer eligibility age, which changed from 65 to 60 on 1 July2022.From 1 January 2023, eligible individuals aged 55 years or older can choose to make adownsizer contribution into their super fund of up to $300,000 per person ($600,000 percouple) from the proceeds of selling their home. There are no changes to the remainingeligibility criteria.
Key dates for downsizer contributions:
Eligible individuals aged 55 years or older can make a downsizer contribution from 1January 2023.For any downsizer contributions made between 1 July 2022 and 31 December 2022,eligible individuals must be aged 60 years or older at the time of making theircontribution.Prior to 1 July 2022, the eligibility age was 65 years and over.
Other important information to consider for 55-59 year olds:
Individuals have 90 days from receiving the sale proceeds of their home to make adownsizer contribution. This means if an individual receives the proceeds of sale priorto 1 January 2023, they can make their contribution after 1 January 2023, so long asthey are still making it within 90 days of receiving the proceeds.If 1 January 2023 falls outside of their 90 day window to make a downsizercontribution, they will not be eligible. It is unlikely the ATO would grant an extension oftime in these circumstances.