Over-55s able to tip $300,000 into super balance after selling their home

Under existing rules, people need to be 60 or over to make the superannuation contribution after downsizing.

But access to the scheme will be extended from January 1.

A couple aged 55 and over will be able to contribute up to $600,000 from the proceeds of the sale of their home, with each spouse tipping in up to $300,000.

A person or their spouse must have owned the home for at least 10 years prior to the sale in order to be eligible for the scheme.

Former Prime Minister Scott Morrison made the pitch to potential downsizers in the dying days of the 2022 federal election campaign, alongside a promise to allow first-home buyers to draw on their super to break into the property market.

Labor vehemently opposed the super-for-housing proposal, but supported lowering the age for people to access the downsizer scheme.

In a statement, Treasurer Jim Chalmers and Financial Services Minister Stephen Jones said the change was an important way to help Australians boost their retirement savings after children left home.

Incentivising empty nesters to downsize could also free up housing stock for younger people trying to buy their first home, the pair's statement said.

In another change, penalties for breaches of foreign investment laws for residential properties will double from January 1 as part of a government crackdown.

It comes after application fees under the foreign investment scheme were doubled in July.

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