The downsizer contributions into superannuation was introduced in the 2017-2018 Budget as part of the Government’s reforms to reduce pressure on housing affordability. This allows people who are 55 years and over to make a contribution into their superannuation after selling their home.
You can make a downsizer contribution up to a maximum of $300,000 from sale proceeds of your home if you satisfy all of the following:
Your downsizer contribution is not counted towards either your non-concessional contribution or concessional contribution caps. This means you can still make the contribution even if you have a total super balance greater than the Transfer Balance Cap. From 1 July 2023, the cap will be $1.9 million.
There is no requirement for repurchasing new main residence. Additionally, if the SMSF Members purchase a new home, there is no requirement in terms of the property size and price.
Each Member can contribute up to $300,000 from the property sale proceeds.