Super Incentive For Downsizers

Almost 60,000 downsizers have pumped a total of $14.5 billion into superannuation in the past five years as a result of downsizing from family homes.

Australian Taxation Office data shows many empty nesters have taken advantage of a federal government initiative which allows them to top up their super by $300,000 for individuals and $600,000 for couples.

Economist Michael Blythe of Downsizer.com says the additional money can have a big impact on superannuation balances.

“If you look at the average return super funds have generated over the past decade, it could boost the income of a downsizer by $20,000 a year,” he says.

Average downsizer contributions to superannuation reached just over $280,000 after the change to the age of eligibility to 55 from January 1, 2023.

Previously only those aged 60 were able to take advantage of the scheme.

One condition is that the property sold must have been the primary place of residence at some stage and owned for at least 10 years.