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Re: Downsizing contribution to super.

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Newbie

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We are considering downsizing to a warmer climate. The house we are in was built by ourselves. Does the 10 year period start from settlement on the land? It is the only settlement we have and the rules say from settlement to settlement. 

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MVF
Devotee

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Hi @bernie53 

 

The date of settlement for the purchase of the land is used as the start date for the purposes of the 10 year rule for the downsizer contribution and this is because an ownership interest in the land is deemed to have been held for the period from its commencement, generally settlement for the contract to purchase right up until the until the settlement for the contract for sale.

 

The ATO have a Law Companion Ruling that covers this issue, in particular please refer to LCR2018/9 paragraph 37 and 38.

 

Law Companion Rulings are the official view of how the legislation applies.

 

hope this helps

 

MVF

 

  

 

 

 

 

 

2 REPLIES 2

Best answer

MVF
Devotee

Replies 1

Hi @bernie53 

 

The date of settlement for the purchase of the land is used as the start date for the purposes of the 10 year rule for the downsizer contribution and this is because an ownership interest in the land is deemed to have been held for the period from its commencement, generally settlement for the contract to purchase right up until the until the settlement for the contract for sale.

 

The ATO have a Law Companion Ruling that covers this issue, in particular please refer to LCR2018/9 paragraph 37 and 38.

 

Law Companion Rulings are the official view of how the legislation applies.

 

hope this helps

 

MVF

 

  

 

 

 

 

 

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Newbie

Replies 0

This helps considerably. Thank you

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