This case illustrates the consequence where the net sale proceeds was not entirely applied in the application of the replacement home.
downsizing
Incentivising pensioners to downsize
The Government is continuing its policy to remove financial barriers which currently inhibit age pensioners (and service pensioners) from downsizing due to the application of the means tests to the sale proceeds of a pensioner’s principal place of residence.
Pension Boost reaches $100m in HEAS approvals, announces capital raise
Pension Boost, which is the leading independent specialist assisting retirees to benefit from the Home Equity Access Scheme (HEAS), has reached a key milestone of $100 million in HEAS approvals.
Downsizing is not for every retiree
With around 76% of all seniors owning their property outright there is an opportunity to downsize but it is no ‘silver bullet’ solution.
Federal Budget not a panacea for retirees
The expectation of action in the Federal Budget on lower taper rates for retirees who have assets/income beyond the current Age Pension limits have been frustrated.
Issues to consider with $600k Downsizer strategy
From 1 July 2018, the Federal Government is allowing ‘Downsizer contributions’ of up to $300,000 per individual who sells their family home after age 65.
Downsizing the home to get more super
As part of the May 2017 budget changes, people over 65 will be able to make an additional contribution to super provided they sell their house to do it.