The eligibility age for the downsizer contribution is expected to come down from 65 to 55 years of age on July 1 2022, with a two year exemption from Centrelink's age pension assets test.
These proposed changes to superannuation rules for downsizers have been welcomed by Downsizer, an Australian PropTech venture specializing in the property downsizing market.
“The proposed age change is fairer to couples with an age gap, allows more flexibility to spend or gift money before applying for the age pension at age 67, and best of all will encourage people to think about downsizing in their late 50s. This allows people to live the dream in life's new golden decades - your 60s and 70s,” according to Mark Macduffie, Co-Founder and Managing Director of Downsizer.
The superannuation rule allows an eligible downsizer - plus their life partner – each to put up to $300,000 into superannuation which is potentially $600,000 per couple.
“If you speak to your financial advisor, you can find out how to make the most of the downsizer contribution by, for example, combining it with a recontribution or top-up strategy,” added Macduffie.
“Our mission is to help an entire generation stop worrying and start living,” said Macduffie, “The downsizer contribution is arguably superannuation’s best kept secret and these changes would make it even better.”
Recent research authored by Downsizer’s Economist in Residence, Michael Blythe, shows that downsizing can make a very meaningful difference to retirement income.
“Our economist’s modelling shows that residents of Brisbane and Canberra could boost their retirement income by some $20,000+ per annum. For Melbourne residents this could be an extra $30,000+ a year, and for some Sydney residents the gain could be as much as an extra $60,000+ per annum,” said Macduffie.
Downsizer.com is a PropTech start-up developing solutions for downsizing Australians to transition to a new off-the-plan dwelling to enjoy luxury and lifestyle, and release equity to fund their retirement.
Downsizer.com has been named as a finalist in the PropTech Association Australia’s 2022 PropTech Awards and also as a finalist in the Urban Developer best new PropTech category. Mark Macduffie has also been short-listed for PropTech Leader of Year.
Downsizer.com is working closely with Downsizing.com.au, as well as with a number of reputable property developers targeting this bespoke consumer demographic.
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