How Downsizing Can Increase Your Super
New rules allow couples to each put $300,000 from the sale of their primary residence into their superannuation fund tax-free. Your decision to downsize should suit your circumstances, and it is important to seek professional financial advice.
What should you consider?
What should you consider?
• To qualify for the superannuation incentive, you must have used the property as your primary residence for at least 10 years.
• Proceeds from selling your home can pay off the mortgage, provide funds for a new home and boost your Super.
• You also have the option to sell your home and lease if you want to move into a retirement village.
• Family homes can become a financial and physical burden as we get older. Utility bills become unnecessarily large, especially for heating and cooling. Maintenance tasks, such as cleaning gutters, become a bigger challenge than they used to be.
• Be aware that your age pension entitlements can be affected as they are subject to an income and assets test. However, principal home sale proceeds will be asset test exempt for 24 months.
• The Super contribution must be deposited within 90 days of selling your current home.
NOTE: The information in this article is general in nature and provided as a general overview only. Always consult your financial advisor or accountant for advice specific to your personal circumstances.
