In this week’s podcast, Aaron looks at the proposed new downsizer contribution rules that were announced in the 2017-18 Federal Budget and are currently before Parliament with a commencement date of 1 July 2018 (once through both Houses of Parliament and has received Royal Assent).
Aaron explore the new downsizer contribution rules including:
- who qualifies for the downsizer contributions, and the eligibility requirements for making the contribution;
- what exceptions exist within the current rules to make the contribution (e.g. work test, age test, and total superannuation balance);
- the CGT main residence exemption and how it relates to the individual (and spouses) ability to make a downsizer contribution;
- the 10 year ownership requirements;
- 90 day timeframe for making the contributions;
- Choice to treat the amount as a downsizer contribution; and
- what happens with amounts that don’t qualify as downsizer contributions
In addition to exploring the above key requirements of the legislation, Aaron identifies a range of practical issues and potential opportunities with this new downsizer contribution legislation.
Read the transcript
You can read the podcast transcript below: