Downsizer Contribution

The downsizer contribution allows individuals aged 55 or over to contribute up to $300,000 (or $600,000 per couple) into their super from the proceeds of selling their main residence. These contributions are not subject to the concessional or non-concessional contribution caps, age restrictions, or the work test. They also do not count towards the $2.1 million total super balance limit for making NCCs.

To be eligible: you (or your spouse) must have owned the home for at least 10 years, the home must be in Australia and not a caravan, houseboat, or mobile home, it must be a dwelling that qualified (in whole or part) for the main residence CGT exemption, and you can only make a downsizer contribution from the sale of one home in your lifetime. You must make the contribution within 90 days of receiving the proceeds (or longer if the ATO approves an extension).

The contribution is taxed as a non-concessional contribution inside the fund (not taxed again). However, it does count towards your transfer balance cap and total super balance for other purposes. The downsizer contribution does not affect your eligibility for the Age Pension asset test exemption on your family home — once you sell and put the proceeds into super, those funds are counted under the Centrelink assets test, which may reduce your Age Pension entitlement.