The ability to make 'downsizer contributions' effectively commenced on 1 July 2018, prompting the ATO to release further guidance with respect to this new superannuation contribution classification.
Editor: This new measure will be of most assistance for individuals approaching retirement, where they dispose of their family home in an effort to 'downsize' and they want to contribute part or all of the proceeds to superannuation.
Basically, these measures allow older Australians to make a downsizer contribution where:
They are aged at least 65;
There was consideration received for the disposal or an eligible Australian dwelling;
The contract of sale for the property was entered on or after 1 July 2018;
A superannuation contribution is generally made within 90 days of settlement;
The contribution does not exceed the lesser of $300,000 and the proceeds received form the sale of the dwelling;
An ownership interest in the dwelling had been held for the least 10 years (usually by the individual making the contribution or their spouse);
Either a full or partial CGT main residence exemption applies to the disposal of the dwelling;
A choice to treat the contribution as a downsizer contribution is made in the approved from; and
Broadly speaking, it is the first downsizer contribution the taxpayer has made.