In the recent Federal Budget (May 2017), the Government has proposed measures that aim to reduce the barriers to downsizing with the aim being to encourage some older people to downsize from homes that no longer meet their needs and free up housing stock for younger families starting out.
The proposed mesaure has been created to provide older Australians with greater flexibility to contribute the proceeds of the sale of their home into superannuation which they hope will reduce the current disincentive to downsize. Here are some frequently asked questions to help you understand what it means to you.
From July 1, 2018, this measure will allow a person, aged 65 or over, to make an additional non-concessional contribution of up to $300,000 from the proceeds of selling their principal residence, if owned for 10 years or more. In addition, both members of a couple will be able to take advantage of this measure for the same home. This is a positive measure from the government and will hopefully be the catalyst to bring under-utilised family homes to the market.