Downsizer superannuation contributions can provide eligible people aged 55 and over with an opportunity to contribute proceeds from the sale of their home into superannuation.

What is a downsizer contribution?

A downsizer contribution is a superannuation contribution made from the proceeds of selling an eligible home. The maximum contribution is the lesser of $300,000 or the total sale proceeds. Because the limit applies to each individual, a couple may be able to contribute up to $600,000 in total, subject to each person meeting the relevant eligibility requirements.

Possible benefits

• Increasing your retirement savings.
• Making additional contributions without needing to satisfy some of the normal contribution eligibility criteria, including the total super balance test and being under age 75.
• The downsizer contribution does not count against your other contribution caps.
• If retained in accumulation phase, investment earnings are generally taxed at a maximum of 15%, rather than potentially being taxed at your marginal tax rate outside super.
• If used to commence a retirement phase superannuation income stream, earnings on the amount may be taxed at 0%.
• The contribution forms part of the tax-free component of your superannuation interest.

General eligibility

• You are aged 55 or over when the contribution is made.
• The contribution comes from the proceeds of selling a single eligible property in Australia.
• You have owned the property for at least 10 years before the sale.
• You are eligible to claim the capital gains tax main residence exemption on the sale, either wholly or partly.
• The contribution is made within 90 days of settlement.
• You provide the required downsizer contribution form to your super fund before or when the contribution is made.
• You do not claim a tax deduction for the contribution.
• You have not previously made a downsizer contribution in relation to another sale.

Do you need to have lived in the home for 10 years?

No. The property must generally have been owned for at least 10 years, but you do not need to have lived in it as your main residence for that entire period. You may still be eligible where the property was used as an investment for part of the ownership period, provided the relevant main residence capital gains tax requirements are met.

What if only one spouse is on the title?

For couples, only one member needs to satisfy the ownership requirement for both spouses to potentially make a downsizer contribution. Each person must still individually satisfy the other eligibility rules.

Do you actually have to downsize?

No. Despite the name, there is no requirement to purchase a smaller or less expensive home. You may buy a more expensive property, or choose not to purchase another property and rent instead. The important issue is whether the contribution itself satisfies the downsizer rules.

Accessing the money after contributing

Once money is contributed to superannuation, normal preservation rules apply. If you are aged 55 to under 65, you may need to meet a condition of release before accessing the funds, such as retiring after preservation age, ceasing an employment arrangement after turning 60, or reaching age 65.

Social security implications

A downsizer contribution increases your superannuation savings and may affect social security entitlements. If you have reached Age Pension age, or commence a superannuation income stream, these savings may be assessed under the relevant income and assets tests. For people below Age Pension age, amounts remaining in accumulation phase may be exempt from those tests.

Before you make a contribution

The downsizer contribution rules include specific eligibility, timing and documentation requirements. It is important to understand how the rules apply to your circumstances before selling a property or making a contribution.

Speak with your financial adviser about whether a downsizer contribution could form part of your retirement strategy.

Source: “Upsize your retirement savings with downsizer contributions”, dated 12 December 2025. This document is a summary of the supplied source material and is general information only.