Super Superannuation Changes
Did you know about the massive change coming to your super? From 1 July, 2018, the Federal Government is introducing a sweeping reform to super contributions, allowing eligible downsizers to pay up to $300,000 from the sale of their home into their superannuation. This is a major change, but what does it mean for you?
Who's It For?
"Eligible downsizers", which in this case means people over 65 who have owned (or have a spouse who's owned) the place they're selling for over 10 years, as long as it's not a mobile home (like a caravan or houseboat), and who sell after 1 July. Also, you can only do this once, no matter how many properties you own.
What Can I Do With It?
You and your spouse can contribute up to $300,000 each into your super fund, as long as this doesn't exceed the total you sold the property for. For example, if you sell for $800,000, you can both put $300,000 in; if you sell for $400,000, can both only put $200,000 in, or split it $300,000 and $100,000 and so on.
What Does it Mean?
If you're thinking of downsizing, putting such a large amount into your super, rather than just your savings, can ultimately net you much more money in the long term. While you'll always want to consider your own finances before committing to anything, this could make things a lot easier when you decide to retire and access your superannuation.
Though you might not hear much about it in the news, this really is a big new development for downsizers, and could change the way you view your retirement. If you're thinking of selling, now is a great time to talk to any of our agents to see what's possible, so get in touch with us today.
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