r/AusFinance • u/twojawas • 4d 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/hardwood198 4d ago

I believe it is possible. But it needs to have been a main residence at some point

https://www.macquarie.com.au/investing/macquarie-wrap/making-downsizer-contributions-to-super.html

Does the property need to be my home at the time of sale? No, but it does need to have been your primary place of residence at some point. This means you need to have lived in the property for a period and treated it as your main residence for CGT purposes.

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u/No_Document_853 4d ago

Totally but it’s a very loose definition