Downsizer, an Australian proptech venture developing innovative solutions for the property downsizing market, has welcomed the proposed changes to the superannuation rules for the downsizer contribution
Downsizer, an Australian proptech venture developing innovative solutions for the property downsizing market, has welcomed the proposed changes to the superannuation rules for the downsizer contribution announced on Sunday by Prime Minister Morrison and supported by Opposition Leader Albanese.
“Our mission is to help an entire generation stop worrying and start living,” said Mark Macduffie, Co-Founder and Managing Director of Downsizer. “The downsizer contribution is arguably superannuation’s best kept secret and these changes would make it even better,” he continued.
The eligibility age for the downsizer contribution is already coming down from 65 to 60 years on 1 July 2022. Now it is proposed to drop again to 55 years of age with a two year exemption from Centrelink's age pension assets test.
“The proposed age change is fairer to couples with an age gap, allows more flexibility to spend or gift money before applying for the age pension at age 67, and best of all will encourage people to think about downsizing in their late 50s so they can get set to live the dream in life's new golden decades - your 60s and 70s,” said Macduffie.
The superannuation rule allows an eligible downsizer - plus their life partner – each to put up to $300,000 into superannuation which is potentially $600,000 per couple.
“If you speak to your financial advisor, you can find out how to make the most of the downsizer contribution by, for example, combining it with a recontribution or top-up strategy,” added Macduffie.
Recent research authored by Downsizer’s Economist in Residence, Michael Blythe, and published as the “Downsizer Download Issue 1,” shows that downsizing can make a very meaningful difference to retirement income.
“Our economist’s modelling shows that residents of Brisbane and Canberra could boost their retirement income by some $20,000+ per annum. For Melbourne residents this could be an extra $30,000+ a year and for some Sydney residents the boost could be as much as an extra $60,000+ per annum,” said Macduffie.
Downsizer.com has recently closed A$1.7 million in seed funding and anticipates launching an additional scale-up funding round in the second half of 2022.
It has also been named as a finalist in the Proptech Association Australia’s 2022 Proptech Awards and Mark Macduffie has also been short-listed for Proptech Leader of Year.