• Personal
  • Employers
  • Advisers
  • Calculators & forms
  • News Hub
  • Contact us
QSuper QSuper
  • Products
    • Why QSuper
    • Investment options
    • Fees
    • Financial advice
    • Compare us
    • Insurance
    • Account types
      • Accumulation account
      • Transition to Retirement Income account
      • Retirement Income account
      • Lifetime Pension
      Why QSuper?

      #1 fund for weathering market ups and downs3

      More reasons to join
  • Super
    • Grow your super
      • Salary sacrifice
      • Super co-contribution
      • Voluntary contributions
      • Spouse contributions
      • Contribution caps
      • Tax deductions
    • Consolidate your super
    • Find your lost super
    • Changing jobs
    • Nominate beneficiaries
    • Early access
    • Seminars and education
  • Retirement
    • Why retire with QSuper
      • Transition to Retirement Income account
      • Retirement Income account
      • Lifetime Pension
    • Retirement planning
      • Make your super last in retirement
      • The Age Pension and Super
    • How much super do you need to retire
    • Access your super
      • When can you access your super
      • Withdraw your super
    • Seminars and education
      Award winning

      SuperRatings' Pension of the Year three years in a row4

      Find out more
  • Investments
    • Investment options
      • Lifetime
      • Moderate
      • Balanced
      • Socially Responsible
      • Aggressive
      • Cash
      • Diversified Bonds
      • Australian Shares
      • International Shares
      • Self Invest
    • Performance
      • Overview
      • Graphs
      • Unit prices
    • Compare options
    • Change your investment options
  • Insurance
    • Insurance options
      • Income protection
      • Total & permanent disability cover
      • Death cover
    • How much insurance cover do you need
    • Change or cancel your insurance
    • Make an insurance claim
  • Advice
  • Calculators & forms
  • News Hub
  • Contact us
Join
  • Call
Join Log In - Open navigation
Member Online

Forgot username?
Forgot password?
Register

Navigation

QSuper
  • Personal
  • Employers
  • Advisers
  • Search
  • Join Log In
  • Products Expand
    • Why QSuper
    • Investment options
    • Insurance
    • Fees
    • Financial advice
    • Account types Expand
      • Accumulation account
      • Transition to Retirement Income account
      • Retirement Income account
      • Lifetime Pension
    • Compare us
  • Super Expand
    • Consolidate your super
    • Grow your super Expand
      • Salary sacrifice
      • Super co-contribution
      • Voluntary contributions
      • Spouse contributions
      • Contribution caps
      • Tax deductions
    • Find your lost super
    • Changing jobs
    • Nominate beneficiaries
    • Early access
    • Seminars and education
  • Retirement Expand
    • Why retire with QSuper Expand
      • Transition to Retirement Income account
      • Retirement Income account
      • Lifetime Pension
    • How much super do you need to retire
    • Retirement planning Expand
      • Make your super last in retirement
      • The Age Pension and Super
    • Access your super Expand
      • When can you access your super
      • Withdraw your super
    • Seminars and education
  • Investments Expand
    • Performance Expand
      • Overview
      • Graphs
      • Unit prices
    • Investment options Expand
      • Lifetime
      • Moderate
      • Balanced
      • Socially Responsible
      • Aggressive
      • Cash
      • Diversified Bonds
      • Australian Shares
      • International Shares
      • Self Invest
    • Compare options
    • Change your investment options
  • Insurance Expand
    • Insurance options Expand
      • Income protection
      • Total & permanent disability cover
      • Death cover
    • How much insurance cover do you need
    • Change or cancel your insurance
    • Make an insurance claim
  • Advice
  • Your account Expand
    • Online Advice
    • Super Expand
      • Consolidate
      • Investments
      • Add to super
      • Insurance
      • Account history & statements
    • Profile Expand
      • Security and Authorities
      • Employer
      • Employer
      • Personal details
      • Beneficiaries
    • Self Invest
  • Calculators & forms Expand
    • Superannuation & Retirement Calculators Expand
      • Super and retirement planning calculators
      • Retirement planning
      • Insurance
      • Maximise your super
      • Savings
      • Investing
    • Forms Expand
      • All
      • Claims and withdrawals
      • Deposits and contributions
      • Insurance
      • Investments
      • Transfers
      • Other forms
    • Publications Expand
      • PDS
      • Guides
      • Annual reports
      • Factsheets
      • Other publications
  • News Hub Expand
    • Category Expand
      • News
      • Superannuation
      • Retirement
      • Finances
      • Investments
      • Career
      • Wellbeing
      • Employer
  • Contact us Expand
    • Email QSuper
    • Language assistance
    • Browser support
    • Formal enquiries and complaints
    • FAQs – Frequently Asked Questions
    • QSuper Member Centres

News Hub

All Articles News Superannuation Retirement Finances Investments Career Wellbeing
News Hub Superannuation

Guide to downsizing contributions into superannuation

News Community
01 July 2018 4 min read

From 1 July 2018, if you are 65 years old or older and meet the eligibility requirements, you may be able to choose to make a downsizer contribution into your superannuation of up to $300,000 from the proceeds of selling your home. Here’s what you need to know.

Known as the ‘downsizing’ initiative, the Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures No. 1) Act 2017 allows homeowners aged 65 and over to each contribute up to $300,000 extra into super from the proceeds of selling their home, in addition to their existing super caps and restrictions.


house  What kind of home would this apply to?

Not a caravan, houseboat, or mobile home (e.g. RV). But any other form of dwelling could potentially qualify you for a downsizer contribution.


calendar  When does the legislation start?

The incentive started on 1 July 2018 and applies to home sales where the contract of sale is entered into on or after 1 July 2018.


Document icon  How is ‘downsizing’ assessed?

You don’t specifically have to buy a smaller house. The measure provides that you would be able to make a downsizer contribution after selling your home, but you are not actually required to make any subsequent purchase.


example 1 downsizing A couple sell their home for $800,000. Each spouse can make a contribution of up to $300,000.

example 2 downsizing A couple sell their home for $400,000. The maximum contribution both can make cannot exceed $400,000 in total. This means they can choose to contribute half ($200,000) each, or split it – for example, $300,000 for one and $100,000 for the other.

Source: ATO


calendar   When does the contribution need to be made into superannuation?

The downsizer contribution must be made within 90 days after your home changes ownership (generally, within 90 days of the date of settlement).

calculator  Can I claim a tax deduction for the contribution?

No, you cannot claim a tax deduction for a downsizer contribution.


Money bag  Are there any social security implications?

There may be. Retirees should seek financial advice before downsizing, because selling the family home – which is exempt from the Age Pension assets test – might trigger a reduction in pension payments for people who receive a full or part pension.

The government notes that any money contributed to super through the downsizing incentive will count towards the Age Pension assets test, and will not be exempt from the $1.6 million cap on savings that are allowed to be held in a tax-free super pension.


Three houses  Why introduce this measure?

The Federal Government says many larger homes are occupied by older singles and couples because these people are discouraged from downsizing. It says its new measure should enable more effective use of the housing stock by freeing up larger homes for younger, growing families.1


The power of right advice

As a QSuper member, you have access to financial advice from QInvest.2

 Make an appointment today



1 The Commonwealth of Australia, Budget 2017-18 Fact Sheet 1.5 – Reducing barriers to downsizing, accessed May 2017 at http://budget.gov.au/2017-18/content/glossies/factsheets/html/HA_15.htm
2 QInvest Limited (ABN 35 063 511 580 AFSL and Australian Credit Licence Number 238274) (QInvest) is a separate legal entity responsible for the financial services and credit services it provides. Advice fees may apply. Refer to the Financial Services Guide for more information.

Related Content
Older couple in kitchen What is an account-based pension?
02 Mar 5 MIN READ

Find out about your retirement income stream options.

Read more
Superannuation
IF YOU ENJOYED THIS ARTICLE, YOU MIGHT ALSO LIKE...
Older couple in kitchen What is an account-based pension?
02 Mar 5 MIN READ

Find out about your retirement income stream options.

Read more
Superannuation
Young couple with laptop Now is the time to stay on top of your super
02 Mar 5 MIN READ

Look after your super now so it may look after you later.

Read more
Employer Superannuation
Personalise Insurance How to personalise your insurance
02 Mar 5 MIN READ

Tailor your insurance to suit your personal circumstances

Read more
Superannuation Employer
Grow your Super 5 actions you could take now to grow your super
22 Feb 5 MIN READ

Take 5 simple actions to boost your super and help you feel more in control of your future this year

Read more
Finance Superannuation
All Articles News Superannuation Retirement Finances Investments Career Wellbeing
  • Our products
    • Why QSuper?
    • Investment options
    • Fees
    • Insurance
    • Financial advice
  • Super & retirement
    • How much do you need?
    • Grow your super
    • Consolidate
    • Changing jobs
    • Seminars
    • Access your super
  • Investments
    • Performance
    • Unit prices
    • Graphs
    • Compare options
  • Calculators & Forms
    • Calculators
    • Forms
    • Publications
  • Contact us
    • 1300 360 750
      Mon-Fri   8.00am to 6.00pm AEST
  • About us
  • Careers
  • Sitemap
  • Privacy
  • Security
  • Disclaimer
  • Terms and conditions
  • Disclosure
© QSuper Board
2020 awards
Facebook Twitter LinkedIn YouTube