Federal Budget announcement 2023 – updates to superannuation

There have been recent changes to downsizer contributions for superannuation.

The minimum eligibility age for downsizer contributions will be widened from 60 years and over to 55 years and over.

Additionally, the following changes were announced for individuals in receipt of Government assistance:

• Assets test change – The proceeds from home sales will be exempted from the assets test for up to 24 months (up from 12 months); and
• Income test change – The lower deeming rate (0.25%) will apply to principal home sale proceeds when calculating deemed income for the 24 months period following the sale under the income test.

The measure will have effect from the start of the first quarter after Royal Assent of the enabling legislation.

A downsizer contribution is a one-off post tax contribution to superannuation up to $300,000 per person from the sale of their home. In the case of couples, both can contribute, and downsizer contributions do not count towards non-concessional caps.