New changes to the ATO's Downsizer Benefit are here!

2023 is a new year, and that means new changes to the Australian Tax Office (ATO) downsizer benefit! And let me tell you, this change is a game-changer for Over 55s living in Victoria, particularly those looking to top up their super and downsize from their high maintenance home.

Starting 1 January 2023, the age qualification for the downsizer benefit has been reduced from 60 to 55 years old. This is the second step in the governments incentive to our generation to choose low-maintenance, downsizing. That's right, now if you're turning 55 this year or are under 60, you're now eligible to take advantage of this great benefit. And let me tell you, it's a benefit worth taking advantage of to free up equity in your home and open up a host of lifestyle choices!

For those who may not be familiar, the downsizer benefit allows eligible individuals who sell their home to make a non-concessional contribution of up to $300,000 per person into their superannuation (for each eligible individual).

But why is this such a big deal for Over 55s in Victoria, you ask? Well, let's face it, the housing market in Victoria can be pretty competitive and expensive. This benefit allows those who may have been considering downsizing their home, but were hesitant due to the financial implications, to potentially make a significant contribution to their superannuation.

And let's not forget, downsizing also comes with a host of other benefits such as lower maintenance costs, reduced utility bills, and the opportunity to live in a community that better suits your lifestyle. But we'll get into that in some of our other posts here in our blogs section

It's important to note that there are certain conditions that must be met to be eligible for the downsizer benefit. For more information on these conditions and how to make a downsizer contribution, head on over to the ATO website here.

So, if you're an Over 55 living in Victoria and have been thinking about downsizing your home, now might be the perfect time to take advantage of this expanded age catchment the government is offering. It's always a good idea to consult with a financial advisor to understand how the downsizer benefit may affect you, but with the reduction in age qualification, more and more people are now eligible to take advantage of this great benefit. Happy downsizing!