Downsizer contributions

If you're 55 or older and meet specific eligibility requirements, you are allowed to enhance your super by up to $300,000 per person or $600,000 for a couple from the proceeds of selling your family home. This contribution scheme is tax efficient and can significantly bolster your financial readiness for retirement.

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What is a downsizer contribution?

A downsizer contribution is a special kind of super boost which uses the proceeds from the sale of your family home. It's classified as a non-concessional (after-tax) contribution, but here's the twist: it doesn't count towards your annual non-concessional contributions cap. You can add a significant sum to your super without it affecting your contribution limits. 

  • Impact on your super balance: While the contribution won't immediately alter your total superannuation balance, it will be included in the end-of-financial-year calculations. This strategy allows you to quickly boost your retirement savings without immediate consequences to your contribution strategy.
  • Considerations for the retirement phase: One important aspect is that downsizer contributions do count towards your transfer balance cap. This cap is crucial when transitioning your super savings into the retirement phase, where there is no tax on investment earnings. It also plays a role in determining your eligibility for the Age Pension.


Downsizer contributions are after tax and increase your tax-free balance. You can make withdrawals tax-free and avoid the 15% death tax when passed to non-dependent beneficiaries.

You can make downsizer contributions if you are 55 years of age or older (if you’re making a couple’s contribution, you must both be 55 or over).


These contributions don't offer personal tax deductions, which might be a drawback for individuals with high taxable incomes.

Selling your home raises questions about how you will live after downsizing and if this scheme will leave sufficient funds for your needs.

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Check your eligibility

  • Age criterion: Eligibility begins at age 55. There is no upper age limit for making a downsizer contribution. 
  • Home ownership:You or your spouse can own the home, but it must have been in your possession for at least 10 years prior to the sale.  
  • Location and type of home:The property must be in Australia and cannot be mobile, such as a caravan or houseboat. 
  • Timing of contribution:You must make your downsizer contribution within 90 days of receiving the sale proceeds, typically aligned with the settlement date. 
  • Contribution history: This must be your first (and only) downsizer contribution from selling any home. 
  • Documentation:The Downsizer Contribution into Super form must be submitted to your super fund before or when making your contribution. 
  • Special note:Even if only one spouse owned the home, both may qualify to make a downsizer contribution, assuming all other criteria are met.
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How to make a downsizer contribution

To find out more, visit the ATO website.


Need more help? Contact our Client Services team

As a member, you can get personalised support from our Client Services team at no cost or obligation to assist with your retirement goals.
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