Did you know that there is a government concession (for contracts entered into on or after 1 July 2018) which allows you to contribute up to $300,000 per person following the sale of your main residence? The main reason for alerting you, is that there is a very tight timeframe by which these funds need to be put into super after the settlement of the sale takes place, and we were concerned that if we only see you once a year, you may sell your main residence, and miss the opportunity to put extra funds into super – if that is what you intended to do.
There are a number of conditions to be satisfied before a downsizer contribution can be made –
•The individual in respect of whom the contribution is made must be at least 65 years of age – there is no maximum age limit.
•The contribution cannot exceed the capital proceeds from the disposal – the maximum is $300,000 per person.
•The ownership interest in the dwelling being sold must be held by the individual and/or their spouse just before disposal.
•You must own the dwelling for at least the 10 years ending just before the disposal.
•Any capital gain from the disposal must be fully or partially exempt from Capital gains tax under the main residence exemption.
•You need to complete a designated form and provide it to the receiving fund.
•You can make multiple contributions but they can only be in respect of the one eligible dwelling.
•The contribution must be made within 90 days of the settlement of the sale.
If you or your spouse are looking to sell your main residence and are interested in making this type of contribution, please contact us.