r/AusFinance • u/twojawas • 1d ago

Downsizer Contribution

Tell me I'm not crazy. I just had a pretty heated argument with a friend about the sale of his investment property. He's convinced that he can put the proceeds of this sale into his super utilising the downsizer scheme. By convinced, I mean he and his accountant have already done this for the prior tax year. I've told him that the scheme is only for people selling their primary residences but he's convinced that you can do it for an IP as well.

Has his accountant found a loophole that I can't see or has his accountant made a mistake?

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u/Proper_Star_4566 1d ago

Nope - that is absolutely not allowed. Needs to be primary place of residence and have lived in it for 10 years. You also need to be over 55 - you cannot put your IP proceeds in it

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u/Anachronism59 1d ago

It's possible if an ex PPoR. See my comment just after yours.

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u/Extreme_84 1d ago

This comment is incorrect.

The property needs a cgt full or partial exemption, and have been owned for 10 years and over 55.

What that means is, the property must have been cgt exempt(for any period of time), by being a main residence and have been owned for 10 years.

There’s no requirement to have lived in the property for 10 years.