Australians aged just 60 will be able to boost their superannuation using their home sale proceeds from 1 July, potentially allowing them to retire early, following the passage of legislation through the Australian Parliament.
On Thursday, the Australian Senate approved amendments to the downsizer superannuation contribution legislation.
The legislation reduces the minimum age to use the scheme from 65 to 60, and sets a starting date for the change from 1 July 2022.
In announcing the legislation’s approval, Treasurer Josh Frydenberg revealed that, from 1 July 2018 to the end of January 2022, 36,800 individuals have contributed $8.9 billion to their superannuation under this measure.
This means homeowners who used the scheme were able to boost their super by an average of $241,000.
"(The legislative change) will allow more older Australians to consider downsizing to homes that better meet their needs, increasing the supply of larger homes for young families," Mr Frydenberg said.
Financial experts have told Downsizing.com.au the changes could allow people to retire up to ten years early and invest up to $630,000 from their home sale to their retirement funds.
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