Latest News
Hot Issues
Protect your business from cyber threats
ATO small business ideas or other business support
Fuel Tax Claim Potential Errors in prior period BAS returns
ATO warns businesses to check FBT claims as deadline nears
FBT Reminder – Odometer Reading
Early intervention 'critical' as insolvencies surge
How Long Could You Survive Drinking Only .......
Capital gains tax
Using your business money and assets for private purposes
Comparison: How Long It Takes To Decompose?
Details of tax calculation for $3m threshold a 'mixed blessing
Sharing economy reporting regime commences soon
Later retirement takes oldies back to living in ’70s
Changes to working from home deduction - started 1 Jul 2022
Accountants face client backlash over blizzard of tax changes
ATO figures reveal final 2022 DPN tally
Residential rental properties
Did you pay your superannuation guarantee payment late?
Five new year’s tax resolutions
ATO issues fresh warning on illegal early access schemes
Looming changes for the “buy now, pay later” market
Changes to Australian Business Number (ABN) registration compliance
100 Most Influential people in the world.
How crypto assets can trigger CGT tripwires
ATO targets dodgy deductions for holiday homes
Tips for small business owners
About the working from home safety and wellbeing checklist
Countries with the highest GDP per capita between 1800-2040
Downsizer age reduction now in force
Raids stop $33m in tax avoidance, ATO claims
100A ruling leaves trust decisions haunted by ‘uncertainty’
Articles archive
Quarter 4 October - December 2022
Quarter 3 July - September 2022
Quarter 2 April - June 2022
Quarter 1 January - March 2022
Quarter 4 October - December 2021
Quarter 3 July - September 2021
Quarter 2 April - June 2021
Quarter 1 January - March 2021
Quarter 4 October - December 2020
Quarter 3 July - September 2020
Quarter 2 April - June 2020
Quarter 1 January - March 2020
Quarter 4 October - December 2019
Quarter 3 July - September 2019
Quarter 2 April - June 2019
Quarter 1 January - March 2019
Quarter 4 October - December 2018
Quarter 3 July - September 2018
Quarter 2 April - June 2018
Quarter 1 January - March 2018
Quarter 4 October - December 2017
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Downsizer age reduction now in force

With the eligibility age for downsizer contributions now age 55, the SMSF Association has highlighted some important considerations for younger clients looking to use the measure.


With Treasury Laws Amendment (2022 Measures No. 2) Bill 2022 receiving royal assent in mid-December last year, the eligibility age for making downsizer contributions has now been reduced to age 55 as of 1 January this year. The eligibility age was previously 60.

This means that eligible individuals aged 55 years and older can now choose to make a downsizer contribution into their super fund of up to $300,000 per person or $600,000 per couple, from the proceeds of selling their home.

Speaking to SMSF Adviser, SMSF Association deputy chief executive, Peter Burgess, said while the downsizer contributions measure has been a popular measure so far, it remains to be seen what the take-up will be among those under age 60.

Ms Burgess said it’s important that younger clients looking to use this measure are aware that there is only one opportunity to use it.

“For some clients it may be best to wait until they have another opportunity to use it later in life,” he explained.

Given that a downsizer contribution counts against an individual’s total super balance, Mr Burgess warned that making one of these contributions may impact a client’s ability to make contributions in the future.

“So, the timing around when you make a downsizer contribution is very important,” he cautioned.

Where a client is below the age of 65, Colonial First State senior technical manager, Tim Sanderson, previously warned that advisers and their clients also need to carefully consider the preservation age with these contributions.

“They won’t have access to the funds till after they meet a condition of release such as retirement which may not be until age 65,” Mr Sanderson said in a FirstTech podcast.

“You need to be very careful when considering whether or not they may need access to the funds because they may not be able to for up to 10 years.”

Advisers should also consider how much cash the client has to contribute to super and whether making a downsizer contribution is actually a viable strategy, he said.

“For many people, utilising the bring-forward rule and contributing up to $330,000 may be sufficient and allows clients to save their once off ability to make a downsizer contribution for the future,” he explained.

“On the other hand, if a couple has a lot of cash available, it may be advantageous to make a downsizer contribution in addition to a non-concessional contribution. This can be particularly tax effective for individuals who are still working and on a higher marginal tax rate.”




Miranda Brownlee
01 January 2023

Privacy Policy | Disclaimer