Downsizer contributions for superannuation have officially been expanded to over-55s, allowing more people to “right-size” their homes and move to age-friendly communities.

Introduced in the October Budget, the measure came into effect as of 1 January, allowing singles aged 55 and over to contribute $300,000 of home sale proceeds into their super, or $600,000 for couples.

In a joint statement, Treasurer Jim Chalmers (above) and Assistant Treasurer Stephen Jones (below) said the expansion would benefit younger Australians looking for homes as well as older Australians looking for more manageable places to live.

“This is a really important way for Australians to boost their retirement savings if they downsize when the kids move out.

“Expansion of the downsizer scheme allows more Australians to use the equity they’ve built up in their homes to plan for retirement. Before today, people needed to be 60 or older to be eligible for the scheme,” they said.

Other downsizer-friendly Budget measures include a doubling of the pension assets test exemption for home sale proceeds, and a two-percentage-point reduction in the deeming rate on home sale proceeds used to buy new homes.