Downsizer Contributions

The downsizing contributions into superannuation was introduced in the 2017-2018 Budget as part of the Government’s reforms to reduce pressure on housing affordability. This allows people who are 65 years and over to make a contribution into their superannuation after selling their home.

You can make a downsizer contribution up to a maximum of $300,000 if you satisfy all of the following:

• you have not previously made a downsizer contribution to your super
• you are 65 years old or older at the time you make a downsizer contribution
• the contract of sale is signed on or after 1 July 2018
• your home was owned by you for at least 10 years prior to the sale
• your home is in Australia and is not a caravan, houseboat or other mobile home
• the proceeds from the sale of the home are either exempt or partially exempt from capital gains tax under the main residence exemption
• you have provided your super fund with the Downsizer Contribution Into Super Form either before or at the time of making your downsizer contribution
• the downsizer contribution must be made within 90 days of receiving the proceeds of sale

Downsizer contributions are not tax deductible and will be taken into account for determining eligibility for the age pension.

Your downsizer contribution is not count towards either your non-concessional contribution or concessional contribution caps. You can still make the contribution even if you have a total super balance greater than $1.7 million.

However, the downsizer contribution will count towards your Transfer Balance Cap, currently set at $1.7 million. Please click the button below for more