‘How much can I put into Super if I sell my house?’

Question: How much can I put into Super if I sell my house?

Answer: How much you can contribute to your superannuation is going to depend on your age and how much you have already contributed. If we assume that up until now the only contributions have been from your employer, you are under age 75 and your total superannuation balance was below $1.68m on 30 June then you will be able to take advantage of the bring forward rule. The bring forward rule enables you to bring forward up to 3 years of the annual non-concessional contributions cap, so you could contribute up to $330,000 under these rules.

You may also be eligible to make a downsizer contribution of up to $300,000. To qualify for the downsizer contribution you need to be over 55, have owned your home for at least 10 years, the home needs to have been your Principal Place of Residence (PPR) and the contribution needs to be made from the sale proceeds within 90 days of settlement.

If you are in the position that you can afford to do both you should be aware that the downsizer contribution can be made regardless of your superannuation balance, so using the bring forward amount BEFORE you make a downsizer contribution may be a good idea if you are close to the superannuation balance cap.

Rachel Lane is author of Downsizing Made Simple with fellow finance expert Noel Whittaker, the new edition is now available to order online. The companion website is there to guide your downsizing journey with great information, tools and easy-to-use resources.

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