Fractional investment platform DomaCom has received confirmation from the tax office that a part disposal of a home can work for downsizer contributions for SMSF trustees to allow them to stay in their home.

The ATO's Administrative Binding Advice confirms that SMSF members are able to sell a part of their property under DomaCom's Senior Equity Release platform and be eligible to make a downsizer contribution.

DomaCom chief executive Arthur Naoumidis said: "The ability for retirees to help themselves by modifying their personal balance sheets and moving some of their financial resources tied up in their home to their super will enable them to enjoy a better retirement."

There are no upper age limits or contribution caps on the contributions however; the contributions can only be made when the trustee is over 65 years old.

It was previously considered that a person had to sell or dispose their entire interest in a property to be eligible for the contribution.

The ATO confirmation on a part disposal now means SMSF trustees can sell a part of their home while remaining in the property.

A residential property cannot be sold to an SMSF but a part interest can be sold to DomaCom's Senior Equity Release giving cash to the superannuation member whether it be SMSF, industry or retail funds.

"For investors, DomaCom's Senior Equity Release delivers 3% income plus capital growth and may suit SMSFs in accumulation mode as well as institutions seeking reliable long-term income and growth," Naoumidis said.

It comes as the government allowed proceeds from downsizing part of a home into superannuation in the 2017/18 budget.

From July 2018 eligible people have been able to make a downsizer contribution of up to $300,000 without being subject to the usual concessional or non-concessional contribution caps.

DomaCom said that while 5000 retirees used the facility in the first year, research shows that a large portion of retirees would rather access the downsizer contribution while remaining in their home.