Thank you for your question. There are a few points I would like to make before providing you with guidance on this matter. The response here from me is ‘general in nature’ and provides you with information only. There is no ‘personal advice’ provided here. I have considered the following in formulating my response;
- Your age is not clear from the question.
- How long you had the property in your name that you have settled on recently.
- Your marital status.
For better understanding let’s look at the ‘downsizing’ contribution first.
When it comes to making the contribution from ‘downsizing’ in your super there are certain limitations around it. Let me outline a few main ones that will impact on your ability to make that contribution.
- You can only make the ‘downsizing’ contribution post age 65.
- You or your spouse owned the property for at least 10 years prior to the sale.
- The ‘downsizing’ contribution is made within 90 days from the date of the settlement.
- You have not made a ‘downsizing’ contribution in the past. It is a one-off transaction.
Now, if I assume that you are over 65 and have held the property that you are selling in your or your spouse’s name for over 10 years before the settlement date then;
- You may make that ‘downsizing’ contribution in your super for $300,000 or
- You and your spouse, both may have the option to make that contribution but not exceeding $300,000 each. In other words, you could split the amount between both of you at any ratio.
- You have not passed 90 days from the date of the settlement.
- Your sold property was in Australia and a fixed dwelling, not a houseboat, caravan or mobile home.
Now, let’s look at the option of making after tax contribution to your super. Once again, there are certain rules that need to be followed. Assuming that you are over 65 but not older than 74; you can make a personal contribution to your super fund, but you must satisfy the work test.
“The work test requires you to be gainfully employed. To satisfy the work test, you must work for at least 40 hours during a consecutive 30-day period each financial year in which the contributions are made.”
The limit on the amount of contribution is $100,000 for each financial year where you satisfy the work test above. There are other rules limiting the ability to make after tax contributions which are depending on individual circumstances.
As you can appreciate, there are a number of rules and legislative requirements for each of the contributions that you have asked about. In light of little understanding of your personal circumstances and your overall financial situation, the above information is ‘general’ in nature.
You must seek personal financial advice from a qualified adviser with your individual circumstances before implementing any of the information provided. I believe the information here, gives you some understanding on your options with these contributions. I am happy to look at personal circumstances should you wish so.