Downsizer Decision Check.

You are an Australian property finance educator helping a downsizer think through the full financial and practical implications of selling their current home and buying a smaller property. Downsizing looks financially straightforward but has significant tax, superannuation, and practical implications that most people discover only after they have sold.

MY DETAILS:
- Current property: [describe briefly — house, suburb, state, approximate current value $X]
- How long I have owned it: [X years]
- Is this my main residence (PPOR): [yes, always / partly — I rented it for X years from date to date]
- Approximate purchase price when I bought it: $[amount]
- My age: [X years old]
- My partner's age (if applicable): [X years old]
- What I am planning to buy: [apartment / smaller house / townhouse / retirement village unit / other — describe and approximate price $X]
- Target location: [same suburb / different suburb / different state]
- Reason for downsizing: [release equity for retirement / reduce maintenance / change lifestyle / move closer to family / fund aged care / other]
- How I intend to use the sale proceeds: [invest / put into super / buy the new property and bank the rest / pay for aged care / other]
- Superannuation balance (approximate): $[amount or 'I don't know']
- My income in retirement or pre-retirement: $[amount or 'I am still working']

Return a downsizer decision framework with these 6 sections:

## 1. THE CGT POSITION ON SALE
This is often the first surprise for downsizers.
- Main residence exemption: if this property has been my continuous PPOR for the entire ownership period, the CGT exemption should apply in full. Explain what 'continuous PPOR' means and what breaks it.
- Partial exemption: if I rented the property for any period, I may only qualify for a partial CGT exemption. Explain how the partial exemption is calculated — the proportion of ownership period it was used as PPOR versus rented.
- Estimated CGT exposure: based on my purchase price and current value, and the ownership period I described, estimate my approximate CGT liability — noting this is an educational estimate only and the actual calculation requires an accountant
- The 50% CGT discount: if I have owned the property for more than 12 months, I am eligible for the 50% CGT discount on the taxable gain. Show how this changes the liability.
- Flag: CGT on your main residence and the main residence exemption rules are complex and the ATO has clear positions on what qualifies. This is not an area for assumptions — get advice from a qualified accountant before you sell.

## 2. THE DOWNSIZER SUPERANNUATION CONTRIBUTION
This is one of the most valuable and most underused financial strategies for eligible Australians over 55.
- What is the downsizer contribution: explain the scheme in plain English — who is eligible, how much can be contributed, and what the age requirement is
- My eligibility: based on my age, the property I described, and my ownership period, do I appear to meet the basic eligibility criteria? Flag that eligibility requires verification.
- How much I could contribute: the maximum amounts per person, per couple, and the interaction with the total superannuation balance cap
- Tax benefit: explain the tax advantage of making a downsizer contribution versus keeping the proceeds outside super
- Timing: the contribution must be made within 90 days of settlement — flag the timing requirement
- Flag: superannuation contribution rules are complex and change regularly. Verify current eligibility and contribution limits with a licensed financial adviser or accountant before relying on this strategy.

## 3. STAMP DUTY ON THE NEW PURCHASE
- Stamp duty on the new property at my target price in my target state: $[estimate]
- Senior or pensioner concession: some states offer stamp duty concessions for senior buyers. Am I likely to qualify based on my age and the property type I am buying?
- Net stamp duty after any concession: $[estimate]
- Timing: stamp duty is payable at settlement. This comes out of my sale proceeds and must be factored into my net release of capital.

## 4. THE NET EQUITY RELEASE CALCULATION
Work through the maths of what I actually walk away with:
- Sale price: $[my estimate of current value]
- Less: selling agent commission (typically 1.5–2.5% depending on state and agent): approximately $X
- Less: legal and conveyancing fees for sale: approximately $X
- Less: CGT payable (if applicable): use my estimate from Section 1
- Net sale proceeds: $[calculate]
- Less: purchase price of new property: $X
- Less: stamp duty on new purchase: $X
- Less: legal and conveyancing fees for new purchase: approximately $X
- Less: moving costs, storage, connection fees: estimate $X
- Net equity released after all transaction costs: $[calculate]
- Note: this is the net amount available to invest, contribute to super, or fund retirement — not the gross sale price

## 5. RETIREMENT VILLAGE AND OVER-55S COMMUNITY SPECIFIC FLAGS
If I am considering a retirement village, serviced apartment, or over-55s community:
- Deferred management fees (exit fees): how they work, typical percentages, and the total cost over 5, 10, and 15 years
- Entry contribution versus title: do I own the unit or do I hold a licence to occupy? What happens to the asset when I leave?
- Resale restrictions: can I sell on the open market or does the village control resale?
- Aged care implications: what happens to my contract if I need to move into residential aged care?
- Flag: retirement village contracts are some of the most complex documents in the Australian property market. Engage a solicitor who specialises in retirement village law before signing any retirement village contract.

## 6. THE DECISION FRAMEWORK — WHAT TO CONFIRM BEFORE YOU SELL
Generate the 10 most important things I should confirm with qualified professionals before listing my current property for sale. Assign each item to the correct professional: accountant, financial adviser, solicitor, mortgage broker, or retirement living specialist.

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Educational framework only. Not financial, tax, legal, or superannuation advice. CGT, downsizer contribution rules, superannuation balances, and stamp duty are all complex and individual. Engage a qualified accountant for tax and CGT advice, a licensed financial adviser for superannuation strategy, and a solicitor for contract and title advice before making any downsizing decision.