Budget 2022: A Boon for Home-owners Over 55
Are you a single or a couple rattling around in a too-big family home that you’ve held for over 10 years?
In a boon for those aged 55 years and over, the Federal Budget has lowered the age of the “downsizer contribution” allowing singles or couples selling their homes to make a one-off contribution to their super of up to $300,000 each. Importantly, this contribution will not count towards non-concessional super contribution caps (after-tax contributions that are not taxed by your super fund – currently at $110,000).
According to the budget papers, this initiative will have a two-fold effect – to provide greater flexibility for older Australians to boost their superannuation and to encourage them to downsize to a more suitable home, increasing the availability of suitable housing for Australian families.
In practicality, it will mean those retiring within the next decade will benefit from a much higher balance, increasing their returns over time. Further information can be found on the ATO website.
To ensure that you are making the best decisions for your particular situation, we recommend speaking to a qualified Financial Planner and/or Accountant before taking any measures in response to the new budget provisions. And remember, Bradley & Bray are here to assist with the Buying/Selling process of your home.
This article is general in nature and does not constitute legal advice. If you require legal advice in relation to your personal circumstances, you must formally engage our firm, or another firm to provide legal advice in relation to your matter. Bradley & Bray lawyers takes no responsibility for any use of the information provided in this article.
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