How to use home downsizing to scrub tax from your SMSF (opens original article in a new tab)

A recontribution strategy can help shift taxable super fund balances to tax-free, but is subject to contribution caps, while the downsizer contribution remains unaffected by these limits.

• Recontribution strategy can be used to shift taxable super fund balance to tax-free
• Annual $120,000 contribution cap applies to withdrawals and recontributions
• Downsizer $300,000 contribution is not subject to annual caps
• Strategy has limitations for reducing tax on beneficiaries' inheritance