A bill to reduce the eligibility age for downsizer contributions down to age 55 has now passed the Senate and awaits Royal assent. Treasury Laws Amendment (2022 Measures No. 2) Bill 2022 has today passed both houses of Parliament.

The bill lowers the age that individuals can make downsizer contributions to their superannuation from the proceeds of selling their house from the 60 down to age 55. The amendment will commence from 1 January next year.

Downsizer contributions allow eligible individuals to make a contribution of up to $300,000 to their super from the proceeds of the sale or partial sale of their home without it counting towards their contribution caps.

In order to be eligible, the individual or their spouse must have owned their home for 10 years of more prior to the sake. The home must be in Australia and cannot be a caravan, houseboat or other mobile home.

The downsizer contribution must also be made within 90 days of receiving the proceeds of sale, which is usually at the date of settlement.

Rick Maggi