Are you over 55 and thinking of moving or selling your home?

Are you over 55 and thinking of moving or selling your home?

Many baby boomers are asset-rich and cash-flow or income-poor.  You may be aware that a number of years ago, the Federal Government introduced the ‘downsizing contribution’ into superannuation. 

The concept of this concession was to allow homeowners to contribute $300,000 into their superannuation fund when they sell their home, subject to certain conditions. 

Originally in July 2018, you needed to be over age 65 to qualify for this concession; now, they have reduced the concession to 55 years old.

This is an excellent tax-effective retirement strategy, particularly where clients are looking to downsize, say, from a house to a home unit.  Or alternatively moving out of a capital city such as Sydney or Melbourne to a regional area.  The primary benefit of this strategy is that the income earned or surplus funds are taxed less in a superannuation environment than they may be at an individual’s marginal tax rate, particularly where one continues to work.

Should you require further information in relation to selling your property, please feel free to contact Peter Quinn by submitting an enquiry or calling us on +61 2 9580 9166 to book an obligation-free appointment.

The information in this document does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it. It is important that your personal circumstances are taken into account before making any financial decision and it is recommended that you seek assistance from your financial adviser.