Younger Aussies to be eligible for downsizer super scheme, Morrison promises
The Morrison government has said it will expand the downsizer superannuation scheme by reducing the minimum eligibility age if re-elected this weekend.
At present, the downsizer superannuation scheme is only available to those aged 65 years and over. In the 2021 Federal Budget it was announced that the eligibility age would be reduced to 60 from July 1.
Now, if re-elected, the Morrison government has said it will reduce the eligibility age further to 55.
Australians approaching retirement would then be able to make a post-tax contribution of up to $300,000 into their superannuation account after they sell their family home.
While the eligibility age is proposed to change, there are several other criteria that must be met that remains in place, including that the house must have been owned by a person or their partner for at least 10 years.
In response, UniSuper said it supports any measures aimed at helping people make the most of their retirement savings.
"The decision to downsize is one that is often made earlier in life than the current eligibility age. This proposal removes a key barrier for people in their 50s and early 60s who are ineligible for downsizer contributions," says UniSuper chief executive Peter Chun.
"Pre-retirees who wish to downsize as children finish education and move out of home shouldn't be penalised.
"Downsizer contributions offer genuine flexibility to people who don't need larger family homes. They can contribute the proceeds from the sale into super, outside the usual contribution caps.
"We welcome the additional flexibility this offers to our members, and the related changes to the exemption of principal home sale proceeds for a further 12 months, which gives both the additional time and flexibility to save for their retirement."
The government said it will also make proceeds of the sale of a home exempt from the pension assets test for two years; currently, the exemption applies for just one year. This would be implemented from January 1, 2023.
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