Did you know the recent budget has handed out some magical news to older Australians looking to rightsize?
From 1 July 2021, if you’re aged 60 or over, you will be able to make a one-off, post-tax contribution of up to $300,000 per person (or $600,000 per couple) to your superannuation when you sell your home.
The move is all part of a plan by the Government to encourage older Australians to consider rightsizing to a home that better suits their needs for today.
Rightsizing means living for today and tomorrow in a home that has all the entertainment and relaxation possibilities, coupled with a better use of space and easier ways to manage household work.
For many, rightsizing means reducing the strain of everyday household requirements like heavy gardening or ongoing maintenance. This style of living is becoming increasingly popular with people whose older children have left the family home.
Moving into this type of accommodation is an option that offers support in the areas you need but still gives you the freedom, privacy, security and independence you’re accustomed to.
This is the first time this opportunity has been made available to people from 60 years of age, as previously you needed to be over 65 to be eligible.
These contributions do not count towards non-concessional contribution caps, which are voluntary contributions into superannuation made out of an individual’s post-tax income.
Want to know more? We’re happy to talk through options on 9032 6489 or send us an email to email@example.com.
Before making any decisions, we recommend seeking independent financial, legal and taxation advice to see what these changes mean for your individual circumstances.