The downsizer contributions measure was introduced by the Turnbull Government as part of the Government's broader housing affordability package to reduce pressure on housing affordability in Australia. This new super measure became law on 13 December 2017.
This new super measure will allow an individual aged 65 or over to use the proceeds in relation to one sale of their main residence to make 'downsizer contributions' of up to $300,000 (or $600,000 if a couple) into super. To be eligible, the contract for sale, not the settlement date, must be entered into on or after 1 July 2018.
It's important to note that the property does not need to be a current home. It can be an individual's former home. This is an exciting development from a financial planning perspective, as it means downsizer contributions can potentially be used by a much larger group of clients than was initially thought. When this measure was announced in the May 2017 Federal Budget, it was understood that only current homes could be eligible, however, the Government has since broadened its scope to include former homes.