Under the superannuation downsizer scheme, from 1 July 2018, people aged 65 and older can make a non-concessional (post-tax) contribution of up to $300,000 from the proceeds of selling what was once their family home. Existing contribution caps and restrictions will not apply to the downsizer contribution.
The downsizer scheme was one of several measures announced in the May 2017 Federal Budget aimed at reducing pressure on housing affordability. Downsizing enables more effective use of housing stock, by freeing up larger homes for younger, growing families.
By enabling older Australians to make additional contributions to superannuation, the scheme also assists these individuals to better provide for their retirement, and also take advantage of the concessional taxation environment afforded to superannuation funds (including 15% tax on earnings, or tax-free when an account is in pension mode). Readmore