They’re valuable because it doesn’t matter how much you have in super, but beware of your timing – especially when combined with other contributions.
are one-off contributions people can make if they sell their home and meet a range of conditions . Importantly, anyone who meets the conditions can make a downsizer contribution, no matter how much they already have in super. And the amount is potentially large – up to $300,000, or $300,000 each in the case of couples.
For example, a member with less than $1.48 million in super at June 30, 2022 could potentially make non-concessional contributions of up to $330,000 this year – just as much as a downsizer, in fact a little higher. But those with more than $1.7 million in super at June 30, 2022 have a cap of $0 on their non-concessional contributions for 2022-23. Suddenly, a downsizer contribution looks much more attractive.
For example, Trish is 56 and had $1.4 million in super at June 30, 2022. She intends to sell her house in early 2023 and would also like to transfer some money she has personally into her fund later in the year.In Trish’s mind the two events are not connected – but, in fact, timing is everything.
Remember that Trish won’t have a lot of choice when it comes to the year in which her downsizer contribution is made – the contribution must be made within 90 days of settlement on her house. That might mean she’s locked into a particular financial year based on when she sells the house. But what if the house settles in May 2023? Then she has choices – and they may really matter, depending on her contribution plans for 2023-24.
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