An amendment to the Income Tax Assessment Act lowering the age of people eligible to make home downsizer contributions has passed the House of Representatives. The amended downsizer scheme allows people over 55 (down from 60) to sell their home and contribute up to A$300,000 of the proceeds to their superannuation fund. If the property is jointly owned, each member of the couple can contribute up to $300,000.

The scheme applies only to a main residence.

The downsizer rule was introduced in 2018 as a way of encouraging retirees to sell large family homes, freeing up underutilised real estate.

Initially, eligibility was 65 and older. The eligibility age has come down progressively since then to encourage more people to use the scheme.

Earlier this year the government reported that 36,800 people have contributed $8.9 billion to super under the scheme.

The latest amendment was one of a number of tax measures included in Treasury Laws Amendment (2022 Measures No. 2) Bill 2022.