An SMSF educator has confirmed the length of time a couple is married has no effect on the ability for either of them to use the downsizer contribution provisions.
Accurium superannuation adviser Natalie Scott acknowledged this detail in the rules to dispel any confusion as to whether or not a married couple has to be together for at least 10 years for both of them to be able to make a downsizer contribution if the title of the property in question was held in the name of only one spouse.
“[The length of the relationship] is not really an issue. The fact [a person is not the SMSF member’s] spouse for 10 years is not a problem. [The rule] really just looks at whether [the person involved was the member’s] spouse at the time of the CGT (capital gains tax) event,” Scott told attendees of a recent technical webinar.
“So at the time that the main residence or the partial main residence was sold, they need to be in a spousal relationship. It also captures former spouses as well.
“So [that’s the only condition needing to be satisfied], but there is not a requirement that [the individuals] have been in a relationship for 10 years.”
She indicated she understood where the confusion has arisen from and stipulated the details contained in the downsizer contribution provisions with regard to timelines.
“When you’ve got a downsizer contribution and spouses are involved, [the rules dictate you] just have to have one of the [relevant persons hold] an eligible interest in the property [as a main place of residence] and it needs to be an interest for more than 10 years as well,” she recognised.
“So the 10-year rule only applies [such that the member has] owned the property for 10 years.”
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