Downsizer.com wants to help a whole generation stop worrying and start living.
The proposed changes to the superannuation rules for the downsizer contribution – announced on Sunday by Prime Minister Morrison and supported by Opposition Leader Albanese – will make a big difference to this proptech’s mission.
The eligibility age for the downsizer contribution is already coming down from 65 to 60 on 1 July. Now it is proposed to drop again to 55 years of age with a two year exemption from Centrelink’s age pension assets test.
The age pension is available for persons reaching 67 years if born from 1957.
The superannuation rule allows an eligible downsizer – and their life partner – to each put up to $300,000 into superannuation so that’s potentially $600,000 per couple. Recent research published by Downsizer.com in the Downsizer Download Issue 1, shows this can make a very meaningful difference to retirement income.
“The downsizer contribution is already superannuation’s best kept secret,” says Mark Macduffie, Co-Founder and MD of Downsizer.com. “These proposed changes make it even better. It’s fairer to couples with an age gap plus it gives more flexibility for people to spend or gift their freed-up equity before becoming subject to the age pension rules.”
“Ideally, people should think about downsizing in their late 50s or early 60s so they can set themselves up to enjoy the new golden decades of life in their 60s and 70s. The proposed changes will encourage more Baby Boomers and Gen Xers to start living the dream,” says Macduffie.