The issue is that older home owners are currently unable to invest the proceeds from selling their home into their superannuation which appears to be discouraging older people from downsizing This means that many larger family homes sit occupied by only singles of couples. Encouraging downsizing should enable more effective use of the housing stock by freeing up larger homes for younger, growing families.

This measure will apply to a principal place of residence held for a minimum of 10 years. Both members of a couple will be able to take advantage of this measure for the same home, meaning $600,000 per couple can be contributed to superannuation through the downsizing cap.

No - These contributions will be in addition to any other voluntary contributions that you are able to make under the existing contribution rules and concessional and non-concessional caps.

It is hoped that this measure will encourage some people to downsize into housing that is more suitable to their needs, freeing up larger family homes for younger families.

It will assist people aged 65 and over who are currently unable to contribute all or any proceeds of the sale of their home into superannuation because of the existing restrictions and caps.

Yes. Any change in the person's superannuation balance as a result of this measure will count towards the Age Pension assets test.

No. Only people who have remaining transfer balance cap space will be able to convert their contributions into a pension phase account where earnings are tax-free.

No. Restrictions on non-concessional contributions for people with balances above $1.6 million will not apply to contributions made under this new special downsizing cap.