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ARTICLE · 21 FEBRUARY 2018

Downsizer superannuation contributions – what you need to know about the new contribution cap

Cooper Grace Ward
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Downsizer contributions provide an additional opportunity for people aged over 65 to make contributions to superannuation.

AustraliaTax
Scott Hay-Bartlem
Scott Hay-Bartlem
Clinton Jackson
Clinton Jackson
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From 1 July 2018, there is a new contribution cap – the downsizer contributions cap.

Although this cap is designed for people downsizing their main residence, it can be used in much wider circumstances than that.

The downsizer cap is in addition to the other caps, and is available regardless of the amount of money the member already has in superannuation. (It does not matter if the contributor's total superannuation balance is over $1.6 million).

The cap can only be used once, and the maximum amount that can be contributed under the downsizer cap is $300,000 or the actual sale proceeds from the property, whichever is lesser.

There are a number of conditions:

  1. The contributor must be 65 years or more.

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