What is a downsizer super contribution
If you're ready to downsize your home, you may be able to put some of the money from the sale of your property to your super.
How it works
The Government's downsizer contribution measure allows you to make a one-off contribution to your super when you sell your family home. You can add up to $300,000 as an individual, or $600,000 as a couple (if you are both eligible), from the proceeds of the sale.
You won't pay tax on the downsizer contribution and it won't count towards your annual contribution caps. The contribution must be made within 90 days of the sale of your home, which is usually the date of settlement.
Lauren and Tim are both 66 and sold the family home they lived in for the last 12 years for $950,000. Under the downsizer contribution rules, they could add up to $300,000 each to their super accounts.
If their house sold for only $500,000, they could contribute up to $250,000 each to their super, or choose to top up the account with the lower balance by splitting the contributions – adding $300,000 to one and $200,000 to the other.
In 2021-22, more than 1,000 members with a QSuper account made downsizer contributions. The average amount was around $233,000.
Downsizer contribution rules
The Australian Taxation Office (ATO) decides who can make a downsizer contribution. You may be eligible if:
- You're 55 years or older (there's no maximum age limit)
- Your home is in Australia and isn't a caravan, houseboat or other mobile home
- The contract of sale is exchanged on or after 1 July 2018
- Your home is owned by you and/or your spouse for more than 10 years before the sale
- You have not previously made a downsizer contribution from the sale of another home
- The proceeds of the sale are exempt, partially or fully, from capital gains tax under the main residence exemption.1
Read the QSuper Downsizer Contribution factsheet (pdf) for more information.
What else to consider
- You can still make a downsizer contribution if you have a total super balance of more than $1.7 million. But if you move your super to a Retirement Income account, it won't be exempt from the transfer balance cap.
- Downsizer contributions aren't tax deductible.
- It may affect your Age Pension eligibility through the asset test. 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 get a full or part pension or see them cancelled altogether.
- You have to be over 65, or reach a certain age and be retired, before you can withdraw the money you add to your super.
How to get started
- Check your eligibility to make a contribution
- Complete the Downsizer Contribution into Superannuation form (pdf)
- Send us the form before or at the time you make your downsizer contribution.