Eligibility for downsizer contributions

The age an eligible individual can make a downsizer contribution to their superannuation has changed.

If your client has reached the eligible age, they (each individual) may be able to contribute up to $300,000 from the proceeds of the sale (or part sale) of their home into their superannuation fund.

To make a downsizer contribution; the eligible age is as follows:

  • From 1 January 2023, 55 years old or older
  • From 1 July 2022, 60 years old or older
  • From 1 July 2018, 65 years old or older.

Super guarantee

If you’re eligible for super guarantee (SG) contributions, your employer must pay the minimum SG contribution based on the current super guarantee percentage of your ordinary time earnings (up to the maximum contribution base).

Generally, all employees are eligible for SG. It doesn’t matter if you’re:

  • full time, part time or casual – except that if you’re
    • under 18 years old, you’re only eligible for SG contributions if you work more than 30 hours in a week
    • paid to do work of a private or domestic nature, you’re only eligible for SG contributions if you work more than 30 hours in a week

Contractors

If you’re a contractor but considered an employee for super purposes, you may be entitled to SG contributions from your employer.

If you’re a contractor paid wholly or principally for your labour, you’re considered an employee for super purposes and entitled to super guarantee contributions under the same rules as employees.

A contract may be considered ‘wholly or principally for labour’ if:

  • you’re paid wholly or principally for your personal labour and skills
  • you perform the contract work personally
  • you’re paid for hours worked, rather than to achieve a result.

For super to apply, the contract must be directly between you and your employer. It can’t be through another person or through a company, trust or partnership.

Superannuation Guarantee (SG) – the SG rate rises to 11% for 2023/24

Financial Year Superannuation Guarantee Rate (percentage of Ordinary Times Earnings)
2022/23 10.5%
2023/24 11%
2024/25 11.5%
2025/26 12%

For further details contact South East Access
Phone: (02) 4454 4444
Office hours are 9.00am to 5:00 pm
admin@southeastaccess.com.au