Your client can make a downsizer contribution into their account if they’ve met certain eligibility criteria including:
- being 55 years or older at the time of the contribution
- the dwelling was owned by your client or their spouse for 10 years or more before the sale
- the home is in Australia and is not a caravan, houseboat or other mobile home
- the proceeds from the sale are exempt or partially exempt from Capital Gains Tax (CGT) under the main residence exemption
- the downsizer contribution is made within 90 days (or longer period as allowed by the ATO) of the sale (usually at the date of settlement)
- no previous downsizer contributions have been made to super from the sale of another home or from the earlier partial sale of your client’s home
- the Downsizer contribution into super form (NAT 75073) is provided either before or at the time of making the downsizer contribution.
A downsizer contribution has its own cap and is equal to the lesser of $300,000 and the total capital proceeds from the sale.