Downsizer contributions

Upsize your super with downsizer contributions.

The downsizer contribution is aimed at helping older Australians put part or all the proceeds of the sale of their home into super to boost retirement savings.

How does it work?

If you’re aged 55 or more and sell a property that has been your main residence and owned
for 10 or more years, you may be able to contribute some of the proceeds to your super account¹.

May be suitable if…

You want to sell your home and use the money to boost your retirement savings.

What are the benefits?

Be able to contribute up to $300,000 ($600,000 for couples) into super, regardless of your work status, super balance or what you’ve already contributed under the ordinary concessional and non-concessional contribution caps.
Boost your retirement income by starting a retirement income stream.

Case study

Bi'nh and Sui-Lee are 77 and 70 and retired. They sell their home on
20 August 2024 after owning it for 12 years and receive $1.2 million. Neither have made a downsizer contribution in the past.

They can both make downsizer contribution of up to $300,000 each ($600,000 in total) as downsizer contributions do not have age, work test or total super balance limitations.

The downsizer contributions won’t count towards the non-concessional contributions caps.

Important things to consider

Downsizer contributions aren’t tax deductible.

The contributions must be made within 90 days of settling on the property sale.

The money will count towards your transfer balance cap if used to start a retirement income stream.

The money will count towards your total super balance once contributed which may affect your ability to make future super contributions.

This strategy may reduce Age Pension entitlements, because your family home is not an assessable asset when calculating any entitlement to Age Pension, however superannuation is assessable once you’ve reached your Age Pension age.

You should consider any costs associated with selling your home (and buying a new one if you choose to do so).

The Downsizer contribution form must be completed and submitted to your super fund before or at the time the contribution is made.

Other eligibility conditions apply – see the Australian Taxation Office (ATO) website for more information.

¹ Subject to eligibility criteria.

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General advice and information only

Any advice and information on this website is general only, and has been prepared without taking into account your particular circumstances and needs. Before acting on any advice on this website you should assess or seek advice on whether it is appropriate for your needs, financial situation and investment objectives.

Tax disclaimer

Any general tax information on this website is intended as a guide only and is based on our general understanding of taxation laws. It is not intended to be a substitute for specialised taxation advice or an assessment of your liabilities, obligations or claim entitlements that arise, or could arise, under taxation law, and we recommend you consult with a registered tax agent.