Downsizer contributions

Unlock the wealth in your home to grow your super

What is the Downsizer contribution?

Once you reach age 55, you may find yourself wanting to downsize your family home into something smaller or more suited to your changed needs.

The downsizer contribution allows eligible Australians aged 55 or older to sell their home and contribute up to $300,000 ($600,000 for couples) of the proceeds into their super.

How do I make a Downsizer contribution?

Complete the downsizer contribution form on the ATO website.

An elderly couple looking over a letter.

What are the benefits?

Boost your super - Downsizer contributions give your super an instant boost to your balance in retirement.

Start an income from your super in retirement - Downsizer contributions allow you to take advantage of a tax-free source of income by using the wealth from the sale of your home to provide for your income needs in retirement.

Am I eligible?

To make a Downsizer contribution:

you must be aged 55* or over
you (or your partner) must have owned the property for at least 10 years
the property must have been your main residence for tax purposes at some time while you owned it
the property you sell must be in Australia and doesn’t include caravans, mobile homes, or house boats

the contract of sale of the property must be entered into on or after 1 July 2018
the contribution to your super account must be made within 90 days of the settlement of your property, and
you're only able to make a Downsizer contribution with the sale proceeds from one eligible property in your lifetime, regardless of whether the cap has been fully used.

* From 1 January 2023, the age reduced from 60 to 55.

Things to consider

Downsizer contributions aren’t tax deductible.
The money will count towards your transfer balance cap if you use it to start a retirement income stream.
The money will count towards your total super balance which may affect your ability to make future super contributions.
This strategy may reduce your Age Pension entitlements.

There may be stamp duty payable on your downsized home purchase.
You should take into account 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.

We’re here to help

If you value the experience of experts in other aspects of your life, don't discount it when it comes to your financial well-being, including your super. A financial adviser can help you identify ways to grow your super. So, start the conversation to see how a financial adviser can help you. If you don’t have one, give us a call and we can help you find one near you.

Bring your super together

Consolidating your super by bringing it together in one place can be one of the most effective ways to grow your super, by no longer paying multiple fees and potentially multiple insurance premiums.

Voluntary contributions

Voluntary contributions are money that you contribute into your super from your after-tax income or other money that you can invest. These are also known as non-concessional contributions.

Spouse contributions

Do you have more super than your spouse? You could add to their super and both enjoy the benefits of less tax and more super for retirement.

Catch-up contributions

There’s a solution if you feel like you’ve missed the boat when it comes to building your retirement savings due to expenses or time-out raising kids, study or parents’ aged care.

Government co-contributions

If you’re a lower or middle-income earner, you might be eligible to receive a Government boost to your super.

Salary sacrifice contributions

If you can afford to give up some of your salary to grow your super, and your employer allows, you can arrange for ‘salary sacrifice’ contributions.

Important information

The information on this web page is of general nature only and has been prepared on behalf of the Trustee without taking into account your objectives, financial circumstances or needs. Before acting on any of this information, you should consider whether it is appropriate to your objectives, financial circumstances and needs, and seek appropriate professional advice. You should not rely on this information to determine your personal tax obligations, please consult a registered tax agent for this purpose.