Where are you at with your super?

Downsizer contribution

The Government has introduced an initiative to allow Australians aged 65 or over to significantly top-up their super, by contributing the proceeds of selling their family home (limits apply) into their super account. These are referred to as ‘downsizer’ contributions.

When can downsizer contributions be made?

From 1 July 2018.

What limits apply to downsizer contributions?

Downsizer contributions are limited to $300,000 per person. Downsizer contributions count toward the $1.6 million Transfer Balance Cap, which represents the maximum amount an individual can transfer from their super into a tax-free Retirement Income account.

How are downsizer contributions classified?

Downsizer contributions are not classified as a non-concessional contribution, meaning the current annual non-concessional contribution limit of $100,000, does not apply.

What are the eligibility rules for downsizer contributions?

  • you must be aged 65 or over; 
  • the downsizer contribution must be sourced from the sale of your main residence, and the contract must be executed on or after 1 July 2018;
  • the residence must have been owned by you and/or your spouse for at least 10 years prior to the sale;
  • you have 90 days after the settlement of your home sale to contribute amounts to superannuation as a non-concessional contribution;
  • you can make more than one non-concessional contribution, following the sale of your main residence, up to the limits outlined above;
  • you don’t have to meet the ‘work test’ to make a downsizer contribution.

For further information about downsizer contributions, refer to the ATO website.