The use of downsizer contributions that increase a TSB will need to be considered in light of the proposed earnings tax based on that figure.

Downsizer contributions are a last resort move to get large sums into superannuation so trustees should consider waiting rather than acting on pending changes.

A range of issues need consideration by trustees if they qualify to make downsizer contributions once the reduction in the qualifying age is implemented.

A further reduction in the eligibility age for downsizer contributions will cost the government very little each year, according to the budget papers.