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Re: downsizer contributions into superannuation

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We are a 69 year old couple in the pension phase of superannuation and a part centerlink pension. We bought land in 2008 with the eventual purpose of building a house and living there. In  2015  we moved onto the land to live in a caravan while our house was being built. We are now in the process of selling this house. Are we eligible to claim the downsizer to super benefit having owned the land it is on since 2008? We did own our primary residential property till 2015. we sold this to fund the building of the new house. 

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ATO Certified

Community Manager

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Hi @3fluffies,

 

Thanks for your patience while we checked this out.

 

For a contribution to be a downsizer contribution, all of the conditions outlined on the ATO website under Downsizing contributions into superannuation must be satisfied.


To make an eligible contribution, the ownership of the dwelling that is sold, or an ownership of the land on which the dwelling is situated, must have been held at all times during the 10 years prior to the disposal.

 

This ownership period is calculated from the day the ownership of the dwelling commenced to the day it ceased. Generally, this will be from the date of settlement of the purchase to the date of settlement of the sale.

 

As stated above, the 10-year holding requirement can relate to the land on which the dwelling is situated which allows for cases where a property is knocked down and another is built in its place, or where a dwelling is built on a vacant block. 


The main residence condition is not related to the 10-year ownership condition. That is, the dwelling does not have to have been the individual’s main residence within the preceding 10-year period immediately prior to disposal.


A partial main residence exemption may apply where the dwelling was not the main residence for the entire period of ownership. There’s more information about this under the Your main residence.


In these circumstances, an individual or couple must have owned an interest in the land for at least 10 years prior to the disposal of the dwelling interest. All other requirements, including that the disposal must relate to a dwelling and that the main residence requirement is satisfied, continue to apply.


For more information about Downsizer contributions, please refer to Downsizer contributions into superanuation. You may also find  information on QSuper’s Downsizer contributions page helpful.

 

Thanks

 

KylieS

 

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Taxicorn

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Community Manager

Replies 2

Hi @3fluffies,

 

We will see if there is any other information that might assist, will get back to you as soon as we can.

 

Thanks

 

KylieS

Best answer

ATO Certified

Community Manager

Replies 1

Hi @3fluffies,

 

Thanks for your patience while we checked this out.

 

For a contribution to be a downsizer contribution, all of the conditions outlined on the ATO website under Downsizing contributions into superannuation must be satisfied.


To make an eligible contribution, the ownership of the dwelling that is sold, or an ownership of the land on which the dwelling is situated, must have been held at all times during the 10 years prior to the disposal.

 

This ownership period is calculated from the day the ownership of the dwelling commenced to the day it ceased. Generally, this will be from the date of settlement of the purchase to the date of settlement of the sale.

 

As stated above, the 10-year holding requirement can relate to the land on which the dwelling is situated which allows for cases where a property is knocked down and another is built in its place, or where a dwelling is built on a vacant block. 


The main residence condition is not related to the 10-year ownership condition. That is, the dwelling does not have to have been the individual’s main residence within the preceding 10-year period immediately prior to disposal.


A partial main residence exemption may apply where the dwelling was not the main residence for the entire period of ownership. There’s more information about this under the Your main residence.


In these circumstances, an individual or couple must have owned an interest in the land for at least 10 years prior to the disposal of the dwelling interest. All other requirements, including that the disposal must relate to a dwelling and that the main residence requirement is satisfied, continue to apply.


For more information about Downsizer contributions, please refer to Downsizer contributions into superanuation. You may also find  information on QSuper’s Downsizer contributions page helpful.

 

Thanks

 

KylieS

 

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Taxicorn

Replies 0

@KylieS 

 

Interesting, I interpreted it to only include a dwelling owned for 10 years.

 

https://www.ato.gov.au/law/view/document?src=hs&pit=**TFN removed**35958&arc=false&start=1&pageSize=... 292-102

 

By your answer, I could buy land, keep it for 9.5 years, build a house on it after 9.5 years and sell it and still qualify....