The downsizer age limit will reduce to 55 from January 1. The contribution must be made within 90 days of settlement so a settlement this month, which would otherwise be eligible but for the age limit, can still result in a downsizer contribution made as late as March. This will even apply to a person who is 54 now but will turn 55 by the time the contribution is made.

But just because you can do something doesn’t mean you should!

A downsizer contribution can only be made once, even if it’s not for the full $300k. Perhaps it might be better for the younger eligible demographic to consider using the three-year non-concessional contribution bring forward provision with a view to using the downsizer later when, due to age or total super balance implications, a non-concessional contribution can’t be made.

Just a thought.