Downsizer contributions refer to a type of voluntary superannuation contribution in Australia that can be made by individuals aged 55 or over using the proceeds from the sale of their main residence.
Introduced in 2018, downsizer contributions allow eligible individuals to make a one-time contribution of up to $300,000 into their superannuation fund per person, or $600,000 per couple. These contributions are exempt from the usual age-based contribution limits and can be made even if the individual has already exceeded their contributions cap.
To be eligible to make downsizer contributions, the following criteria must be met:
Downsizer contributions can be a useful strategy for individuals looking to boost their superannuation balance in retirement. However, it is important to consider the potential impact on other entitlements, such as the age pension, and to seek financial advice before making a downsizer contribution.
Downsizer contributions have the following benefits: