‘Super’ election promises – a recap

Hot off the 2022 Federal Election, Australians are waiting to see if the Labor super-related election announcements will turn into law. In the meantime, here’s a recap of the key policy proposals.

• Extension of the downsizer contribution scheme to age 55

Currently, the downsizer contribution scheme is open to Australians age 65 and older and on 1 July 2022 the minimum age will be lowered to age 60. However, with the election announcement, the minimum age will be lowered further to age 55 and older.

As you may already know, the downsizer contribution scheme allows those eligible to contribute up to $300,000 from the proceeds of the sale (or part sale) of their home into super.

Originally a Coalition announcement, the Labor Party has indicated they would support and match the proposal.

• Extension of exemption period from asset test

At the moment, there is a one-year exemption in place for sale proceeds of the primary home being counted as part of the Age Pension Asset Test if you plan to use that money to buy, build or renovate another home.

This exemption period will be extended to two years, so that Australians wishing to downsize have more flexibility and time to decide their next move.

Originally a Coalition announcement, the Labor Party has indicated they would support and match the proposal.

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