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Downsizer contributions

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Upsize your super with downsizer contributions.

How does it work?

If you’re aged 65 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?

  • Get an additional $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 2021 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). They can do this even though Sui-Lee doesn’t meet the contribution 'work test' and Bi`nh is over 75 (which are some of the eligibility rules that apply to personal non-concessional contributions).

They can make these contributions regardless of how much they already have in their super accounts and the contributions won’t count towards the non-concessional contributions cap.

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

1. Subject to eligibility criteria.

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