The downsizer contribution can still be made even if the contributor has a total superannuation balance (TSB) greater than $1.6 million.

A few points are:-

• will not affect the TSB until 30 June at the end of the financial year
• can only be made for the sale of one home
• not tax deductible and will be taken into account in determining eligibility of the Age Pension
• there is no requirement to purchase another home
• must have held an ownership interest in the home for 10 years
• limited to the lesser of $300,000, or the total capital proceeds received from the sale of the interest in the home
• can be both owners (i.e. $300,000 each)
• within 90 days of the change of ownership.

Early planning will ensure you don’t miss the boat.

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