What is the downsizer contribution?
The downsizer contribution is an amount of up to $300,000 that can be paid in to your super, from the proceeds of selling your home. If you have a spouse, the total contribution is up to $600,000 ($300,000 each).
A downsizer contribution does not count towards your contribution caps,1 and can still be made if you have a total super balance of $1.7 million or more.
Downsizer contributions are only available where the contract of sale was exchanged on or after 1 July 2018, and must be made within 90 days of receiving the proceeds of sale.
Who is eligible?
Eligibility is determined by the Australian Taxation Office (ATO). The ATO outlines eligibility to make a downsizer contribution as follows:
You (and if applicable, your spouse) will be eligible to make a downsizer contribution to super if you can answer yes to all of the following:
- You are 60 years old or older at the time you make a downsizer contribution (there is no maximum age limit)
- The amount you are contributing is from the proceeds of selling your home, where the contract of sale was exchanged on or after 1 July 2018
- Your home was owned by you or your spouse, for 10 years or more prior to the sale (the ownership period is generally calculated from the date of settlement of purchase, to the date of settlement of sale)
- Your home is in Australia and is not a caravan, houseboat, or other mobile home
- The proceeds (capital gain or loss) from the sale of the home are either exempt, or partially exempt from capital gains tax (CGT) under the main
- residence exemption, or would be entitled to such an exemption, if the home was a CGT rather than a
- pre-CGT (acquired before 20 September 1985) asset
- You have provided your super fund with the Downsizer Contribution into Superannuation form either before, or at the time of making your downsizer contribution
- You make your downsizer contribution within 90 days of receiving the proceeds of sale, which is usually at the date of settlement
- You have not previously made a downsizer contribution to your super from the sale of another home.
Please note
If you sold your house and your name (and not your spouse’s) was listed on the title of your property, your spouse can still make a downsizer contribution, or have one made on their behalf, provided you both meet the eligibility criteria.
If you have a spouse, the combined total contribution is up to $600,000 ($300,000 each), and both you and your spouse will need to complete the form at the end of this factsheet.
