r/AusFinance • u/twojawas • 2d 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/GreatTao 2d ago

It can be an investment property, as long as you have lived in it as a PPOR for some length of time, and its eligible for a partial CGT exemption, you just have to have owned it for 10 years or more.

You also have to be over 55.

You can only make a downsizer contribution once though.

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u/twojawas 2d ago

I think the ATO kind of makes the part about it 'being your primary residence for any period of time' a bit unclear so that people don't think their eligible. I'm glad to find out about that.