If you choose to downsize, you can benefit from the Federal Government’s downsizing initiative. This means that if you’re aged 65 or more, you can sell your principal residence (which needs to have been owned for at least 10 years) and use the proceeds to make a non-concessional (after-tax) contribution of up to $300,000 to your superannuation for an individual, or up to $600,000 for a couple. Known as Downsizer contributions, these do not count towards your superannuation contribution caps. To learn more, visit the ATO website.
Be aware that:
• Limited availability of lower-priced accommodation can mean having to move to a different location to secure reasonable downsizing funds. This can mean leaving friends and family behind.
• Once legal and transaction costs, stamp duty and moving expenses are taken into account, your funds could be substantially eroded.
• Downsizing can have a potentially adverse impact on assets and income tests used to assess Age Pension eligibility.
Just over 42% of people have no intention to move or downsize from their family home.
Access your home equity without moving:
More details can be found in the following link: