Retirees have just been given a new tool for their strategy tool bag. The downsizer superannuation contribution (DSC) legislation was just passed just before Christmas. The DSC is exactly as the name suggests, the ability for retirees to contribute proceeds to superannuation from selling their home and buying a smaller/cheaper [1] one (Downsizing) The new rules allow a fourth way to contribute to superannuation( the other three are concessional, non-concessional and Small business capital gains) will come into a affect from 1st of July 2018.   The good news is the eligibility for making a DSC is not means tested, nor aged tested.  So as long as you are over 65 and have owned your home for more than 10 years you are able to make a contribution of $300,000 each or $600,000 in total. The one-off contribution will not be affected by a person’s transfer balance cap, so if you have more than $1.6 million you still be eligible for the contribution. It opens up lot of news strategies as previously anyone post 75 was severely disadvantaged as they couldn’t contribute to the most tax effectively entity structure in Australia. Let’s work through a practical example; An Example George and Ruth are both aged 78 and decide to sell their $1.2million home for a townhouse next to the daughters place, worth $600,000.  They each already have a pension balance of $1.6m.  Meeting the eligibility (see below re the exact eligibility that needs to be met) allows them to make a downsizer contribution of $300,000 each, a total of $600,000.  It is now irrelevant that George and Ruth don’t satisfy…

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