WealthGuru

Govt expands eligibility for downsizer scheme

As of January 1, more Australians can top-up their superannuation after selling their home.

Previously, you had to be aged at least 60 to take advantage of the 'downsizer scheme'. Now, the eligibility age has been reduced to 55.

Under the downsizer scheme, eligible vendors can contribute $300,000 to their super account from the proceeds of the sale of a home. An eligible couple can make a total contribution of $600,000 (i.e. $300k per spouse).

This is general advice only. Please see a financial adviser to see how the downsizer scheme would apply to you personally.

"This is a really important way for Australians to boost their retirement savings if they downsize when the kids move out," said Minister for Financial Services Stephen Jones.

According to the Australian Institute of Health & Welfare, 75% of people aged 55-59 are home owners, compared to 67% of people in all age groups (see graph).

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Home owners embracing renovations

Renovation activity is at historically high levels, with the work-from-home trend inspiring Australians to modify their homes.

Owner-occupiers borrowed $570 million in October to finance renovations (see graph), according to the most recent data from the Australian Bureau of Statistics.

With more people working from home, Australians want to get more from their spaces, such as rooms that can double as studies or garages as gyms.

Houzz Australia research found that the most popular rooms to alter are:

* Kitchen = 23% of renovations
* Living/family room = 20%
* Primary bathroom = 20%
* Other bedroom = 20%
* Other bathroom = 17%