Downsizer Contributions into Superannuation

If you are 65 years old or older and meet the eligibility requirements, you may be able to choose to make a downsizer contribution into your superannuation of up to $300,000 from the proceeds of selling your home.

Your downsizer contribution is not a non-concessional contribution and will not count towards your contributions caps. The downsizer contribution can still be made even if you have a total super balance greater than $1.6 million.

Your downsizer contribution will not affect your total super balance until your total super balance is re-calculated to include all your contributions, including your downsizer contributions, on 30 June at the end of the financial year.

The downsizer contribution will count towards your transfer balance cap, currently set at $1.6 million. This cap applies when you move your super savings into retirement phase.

You can only make downsizing contributions for the sale of one home. You can’t access it again for the sale of a second home.

Downsizer contributions are not tax deductible and will be taken into account for determining eligibility for the age pension.

If you sell your home, are eligible and choose to make a downsizer contribution, there is no requirement for you to purchase another home.

Eligibility:

  • Members making a contribution must be aged 65 or older;
  • The home must have been owned by the member or their spouse for 10 years or more prior to the sale and be exempt or partially exempt from CGT;
  • Each member can contribute up to $300,000 as long as the total contributions do not exceed the sale proceeds;
  • There is no requirement for the members to purchase another residence;
  • The contribution does not count towards the non-concessional cap so can be made even if the member has a Total Super Balance over $1.6 million.

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