What is a downsizer super contribution

If you're ready to downsize your home, you may be able to contribute 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 contribute to your super when you sell your primary residence. You can contribute up to $300,000 as an individual, or $600,000 as a couple (if you are both eligible), from the proceeds of the sale into your super.

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.

Case study Lauren and tim

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 2020-21, more than 730 QSuper members made downsizer contributions, with the average contribution around $219,000.

Downsizer contribution rules

Eligibility to make a downsizer contribution is determined by the Australian Taxation Office (ATO). You may be eligible if:

  • You are 60 years or older (there is no maximum age limit)
  • Your home is in Australia and is not 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 prior to 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

  • A downsizer contribution can still be made 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 are not tax deductible.
  • A downsizer contribution 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 receive a full or part pension or see them cancelled altogether.

How to get started

  1. Check your eligibility to make a contribution
  2. Complete the Downsizer Contribution into Superannuation form (pdf)
  3. Send QSuper the form before or at the time you make your downsizer contribution.