From 1 July 2018 , eligible individuals who are at least 65 years old, allowed to contribute amounts of up to $300,000 from the sale of their main residence to super. The contributions are not considered to be non-concessional contributions and will not count against the contributions caps if all of the relevant conditions are met.
There are a number of conditions that need to be met to access these rules, including that the taxpayer has held their main residence for at least 10 years prior to sale and that the property was at least partially exempt from CGT under the main residence exemption. For example, the draft ruling confirms that even though the main residence CGT exemption is subject to a 2 hectare limit, the downsizer contribution rules can potentially apply as long as the taxpayer would be entitled to a partial exemption under the main residence CGT exemption rules.
To find out more aspects associated with these new rules and approaches situations where someone’s spouse has died, where property has been subdivided and where someone bought vacant land and built their main residence on it, come and talk to us Tax Ideas Accountants & Advisers…http://taxideas.com.au/booking/ Tel: (02) 8318 1545