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SMSF Updates

Downsizing contributions

08 Mar, 2018

From 1 July 2018, you can contribute up to $300,000 from the proceeds of selling your home to your SMSF.

You only can make downsizing contributions once off only.

Your downsizer contribution will not be affected by the total superannuation balance test or count towards your contributions caps in the year you make it.

However, it will count towards your total super balance and transfer balance cap.

The following conditions need to be all met for making a downsizer contribution:

  1. You are 65 years old or over at the time you make a downsizer contribution (there is no maximum age limit).
  2. The amount you are contributing is from the proceeds of selling your home where the contract of sale was exchanged on or after 1 July 2018.
  3. Your home was owned by you or your spouse for 10 years or more prior to the sale.
  4. Your home is in Australia and is not a caravan, houseboat or other mobile home.
  5. The proceeds (capital gain or loss) from the sale of the home are either exempt or partially exempt from capital gains tax (CGT) under the main residence exemption, or would be entitled to such an exemption if the home was a CGT rather than a pre-CGT (acquired before 20 September 1985) asset.
  6. You have provided your super fund with the downsizer contribution form either before or at the time of making your downsizer contribution.
  7. You make your downsizer contribution within 90 days of receiving the proceeds of sale, which is usually the date of settlement.
  8. You have not previously made a downsizer contribution to your super from the sale of another home.
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