In the 2017-18 budget, a measure was introduced to allow contributing the proceeds of downsizing the family home into superannuation. This measure has not been automated in Pathfinder, so if you would like to take advantage of the measure, you will need to do the following workaround (note that it only applies for retail or industry super funds, not SMSFs).
|1||Make sure the individuals are eligible to use the scheme.|
Go to the the Australian Tax Office website www.ato.gov.au and search for 'Downsizing contributions'.
|2||Decide which super fund should receive the funds|
This workaround only works if the contributions are made to a retail or industry super fund. If the contributions will be made to an SMSF, please submit the case to the Optimo Financial SDS, where we will be able to control in whose name the contribution is made.
|3||Set-up and run a scenario without the downsizing contributions|
|4||Work out how much to contribute|
The results of the scenario without the downsizing scheme should help you calculate how much is available to contribute after the home sale.
You may want to do a contribution for more than one individual.
Also remember that there are rules about how much each individual can contribute, which you will need to make sure you keep in (check the Australian Tax Office website).
|5||Copy the scenario so you can add the downsizer contributions to it.||Once you are happy with the results, copy the scenario, so you can add the downsizer scheme (for more see How to make another scenario for comparison)|
|6||Add the downsizer contributions to the new scenario.|
|7||Check the results|