Downsizer contributions: get $300,000 into super

If you’re 55 or older and selling your home, the downsizer contribution lets you put a large chunk of the proceeds into super — even if you’ve stopped working and even if your balance is already large. It’s one of the few ways to get serious money into super late in life.

The rules

• You (or your spouse) must be 55 or older at the time of the contribution — there is no upper age limit.
• You can contribute up to $300,000 each ($600,000 for a couple) from the proceeds of selling your home.
• The home must have been owned for at least 10 years and be in Australia (some exceptions apply).
• The contribution must be made within 90 days of settlement.
• There is no work test and it doesn’t count towards your concessional or non-concessional caps.

Verify eligibility at ATO – Downsizer super contributions.

Why it’s powerful

The downsizer sits outside the normal contribution caps, so a couple can move up to $600,000 into the tax-friendly super environment in one hit — on top of any other contributions they’re eligible to make. For people who are asset-rich in property but light on super, it’s transformative.

The catch to plan around

Is it right for you?

The downsizer suits people genuinely downsizing (or freeing up home equity) who want more in the tax-effective super system. But the Age Pension interaction, the transfer balance cap and your estate plan all need to be weighed first. A complimentary Donmont review will model whether a downsizer contribution actually leaves you better off.

Frequently asked questions