Superannuation
Downsizer Contribution
A one-off, after-tax super contribution that lets eligible people 55 or older put up to $300,000 (or $600,000 for a couple) from the sale of their home into super - without it counting towards the usual concessional or non-concessional caps.
Eligibility
To qualify, all of the following generally need to be met:
- You're 55 or older at the time you make the contribution (no maximum age - this was lowered from 60 in January 2023).
- The property was your (or your spouse's) main residence for at least part of the ownership period, and qualifies for a full or partial CGT main residence exemption.
- You (or your spouse) have owned the home for at least 10 years.
- The home is in Australia and isn't a caravan, houseboat, or other mobile home.
- You haven't made a downsizer contribution from selling a home before - it's a one-time-per-person opportunity, tied to a single disposal.
Notably, you don't actually have to downsize - there's no requirement to buy a smaller or cheaper place afterwards, or to buy another home at all.
How much, and how it fits with other caps
The most you can contribute is the lesser of $300,000 or the sale proceeds (each spouse can contribute up to $300,000, even if only one of you was on the title). Because it sits outside the normal contribution caps, it also isn't subject to the total super balance test - so it's one of the few ways someone can add to super even if their balance already exceeds the general limits that would otherwise block further non-concessional contributions.
Timing
The contribution must be made within 90 days of receiving the sale proceeds (usually settlement), along with a Downsizer contribution into super form given to your fund before or at the time of contributing. Extensions are possible in limited circumstances but not to help you meet the age requirement.
A downsizer contribution does still count towards your total super balance (affecting eligibility for other things down the track) and, once it moves into retirement phase, your transfer balance cap - it's just excluded from the concessional/non-concessional cap tests.
For the official rules and forms, see the ATO's downsizer super contributions page.
Related terms
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