Q & As of the month
Find out what your peers are asking – based on real-life questions submitted to TechConnect.
By Josh Rundmann, Technical Services Manager
Q: My client is eligible for the downsizer contribution and wants to move some investments into their super. For the downsizer contribution, are they required to use the cash received from the sale of their property or can they use their investments?
A: They are not required to use the specific cash proceeds from the sale of their property to make the contribution. Clients can use other assets, including existing investments, to fund their downsizer contribution. Please note, this still triggers a capital gains tax event on transferring assets from the individual’s name to the super fund, and the requirement to provide the super fund the ‘approved form’ at, or before, the time of the contribution still needs to be met. Additionally, as the value of the assets changes over time it is best to work with your product provider to ensure the contribution does not breach the downsizer contribution cap. The downsizer contribution cap being the lesser of $300,000 and the actual proceeds of the sale.
If you have any questions, or would like more information, please contact the IOOF TechConnect team on 1300 650 414.
The information in this section of the website is intended for financial advisers only and is not to be distributed to clients. It has been prepared on behalf of Australian Executor Trustees Limited ABN 84 007 869 794 AFSL 240023, IOOF Investment Management Limited ABN 53 006 695 021 AFSL 230524, IOOF Investment Services Ltd ABN 80 007 350 405, AFSL 230703 and IOOF Ltd ABN 21 087 649 625 AFSL 230522 based on information that is believed to be accurate and reliable at the time of publication.