Downsizer contribution
A one-off super contribution of up to $300,000 from selling a home you have owned for ten years or more.
From age 55, you can contribute up to $300,000 from the proceeds of selling a qualifying home into super. A couple can each contribute, allowing up to $600,000 from a single sale.
The appeal is that it sits outside the usual caps. Downsizer contributions do not count towards the non-concessional cap and are not blocked by having a large existing balance, which makes them available when other routes are closed.
The property must have been owned for at least ten years and be eligible for at least a partial main residence exemption. The contribution must be made within 90 days of settlement.
A couple selling the family home
A couple sell after twenty-five years and contribute $300,000 each. That $600,000 moves into the concessionally taxed super environment despite both having substantial existing balances.
The bit people get wrong
You do not actually have to downsize. There is no requirement to buy a cheaper home, or any home at all — the name is misleading and puts people off a contribution they qualify for.
Common questions
What age can I make a downsizer contribution?
From age 55. The eligibility age has been progressively lowered from 65, so people who checked years ago may now qualify.
Does it count towards my contribution caps?
No. It is excluded from the non-concessional cap and is not restricted by your total super balance, which is its main advantage.
Does it affect the Age Pension?
Yes, potentially. Money in super counts towards the assets test once you reach pension age, while your home does not, so converting home equity into super can reduce entitlements.