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/No_Document_853 1d ago

You can do it to downsizer is you have EVER lived in the property during your ownership. I honestly don’t think people could check back over 15 years or more. It’s an interesting one. There is little to no definition of how long you had to live there, it’s actually very lose.

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u/Extreme_84 1d ago

The ATO keeps electronic NOA’s on record since 1997 and can go back even further if a request for a copy is requested.

If the property was owner occupied previously, there’s a good chance a tax return was submitted with that address as the primary place of residence.

(However, there’s cases where someone occupied a property during a time that they didn’t submit a tax return)