Basic fictional example
Let’s say Dave (70) and Jess (65) want to sell their large family home which they’ve lived in for 30 years and transition to a two-bedroom apartment after all their children move out. Both are still working part-time. The proceeds from the sale of their family home are $1.2 million. Under the new downsizing scheme, both Dave and Jess are able to make a total non-concessional contribution of $600,000 ($300,000 each) into their superannuation accounts. Additionally, they can still take advantage of standard contribution arrangements and make additional contributions to their superannuation accounts.