Eligible downsizer contributions won’t impact or count towards the member’s concessional or non-concessional super contribution caps.
Advisers must receive the downsizer contribution form from their clients either before they make their downsizer contribution, or when they make their downsizer contribution.
During the 2022 Federal election the Government announced it would support a further reduction to the downsizer eligibility age to 55 years. This is not yet law.
The ATO recommends funds advise their clients that any contributions made from members who are 55 to 59 years old will be ineligible for treatment as downsizer contributions andthese contributions (if you can otherwise accept them) will need to be reported as personal contributions, which may result in members exceeding their non-concessional contributions cap.
