Older Australians are taking advantage of the Federal Government’s 2018 family home downsizer measures, allowing proceeds from the sale of the family home to go into the tax-free environment of superannuation accounts.
The downsizer measure allows eligible Australians aged 65 and over to sell their primary residence (if they have held for 10 years or more) and contribute up to $300,000 (or $600,000 per couple) from the sale proceeds into their super.
You won’t pay tax on your downsizer contribution and it will not count towards your contribution caps.
You can make a contribution if you have a super balance greater than $1.6 million, but it will count towards your transfer balance cap.
The transfer balance cap is the amount of superannuation you can transfer into the retirement phase.
QSuper says its members have contributed more than $69 million to their super by downsizing their homes since the measure was introduced.
According to data released earlier this month, the average downsizer contribution among QSuper members was $220,000.
QSuper says a 65 year old adding $220,000 to their super would be able to draw an additional tax-free income of $15,000 per year until age 88.
As we age, the family home can become more difficult to look after, more expensive to maintain and more difficult to move around in.
A lot of older people live in homes that are no longer suitable for their needs.
For example, it can be difficult – or extremely dangerous, climbing stairs after you’ve had a stroke.
Pensioners struggle with the cost of retrofitting their homes to make them safer and more age friendly.
The Age Pension means-test is the problem, and the government must do more to enable pensioners to boost their incomes.
If you are not already a member, you can also help support our Better housing campaign by joining National Seniors Australia.
Our membership fees go towards our research and advocacy so we can fight for better conditions and outcomes for all older Australians.
We also run campaigns aimed at fixing pension poverty, reducing out-of-pocket health costs, cutting energy costs, and more.
As a National Seniors member, you’ll also access discounts, benefits and services to suit your stage of life.