One of the biggest barriers restricting a retiree’s ability to downsize is a complex financial assessment of means testing when selling the family home.
The heavy burden of ongoing property maintenance, ensuring adequate security is in place, along with the costly exercise and stress of adapting the home to suit a change in lifestyle and physical abilities, can quickly become overwhelming.
However, with the timely introduction of the Australian Taxation Office’s (ATO) new Downsizing Contributions Into Superannuation policy, this is all about to change.
The following extract from the ATO website best summarises the policy:
If you have reached the eligible age, you may be able to contribute up to $300,000 from the proceeds of the sale (or part sale) of your home into your superannuation fund.
From July 1, 2022 the eligible age is 60 years old or older. Prior to this it is 65 years old or older.
Some of the eligibility criteria you must satisfy are:
• The home must be in Australia, have been owned by you or your spouse for at least 10 years and the disposal must be exempt or partially exempt from capital gains tax.
• You have not previously made a downsizer contribution to your superannuation from
the sale of another home or from the
part sale of your home.
• Prior to (or at the same time) as making your contribution, you must provide your fund with the Downsizer Contributions Into Super form.
With the property market set to increase further in 2022-23 and interest rates on the rise again, there is literally no better time to consider a move to a new rightly sized apartment.
Norup + Wilson’s Grandton Applecross development is progressing well, with basement works underway and completion expected at the end of 2023.
“We expect sales to further increase following the new ATO policy, as it easily facilitates retirees to transition into a rightly sized home,” Norup + Wilson Director Dave Wilson said.
“Grandton is no ordinary retirement building, in that it’s built like a regular apartment but with the ability to fully adapt the unit to Class 9C (Residential Care) standards.
“Retirees can plan ahead and stay in their newly built, rightly sized home with the knowledge that it can be adapted to cater for most of their future care needs.”
Grandton Applecross is also enabling buyers to fully customise their home layout and have an input on finishings.
With many of the apartments now sold, new buyers will have to act quickly to secure their preferred layout.