Using ‘Downsizer’ Contributions To Boost Superannuation

If you are aged 55 years or older, the downsizer contribution rules enable you to contribute up to $300,000 from the proceeds of the sale of your home to your superannuation fund (eligibility criteria applies).

In 2023-24, over 57% of people making a ‘downsizer’ contribution to super were women. The average value of the contribution was marginally higher at $262,000 versus $259,000 contributed by men.

At what age can you make a downsizer contribution?

The most likely age someone makes a downsizer contribution is between 65 and 69. From age 65, a downsizer contribution can be withdrawn from super if your circumstances change. This counts even if you are still working. Those aged 55 to 64 generally won’t have access to these funds until they are at least 60 and retired.

These contributions are excluded from the existing:

• Upper age test.
• Work test.
• The total super balance rules (but the amount that can be moved to a retirement pension is limited by your transfer balance cap).

For couples, both members of a couple can take advantage of the concession for the same home. If you or your spouse meet the other criteria, both of you can contribute up to $300,000 ($600,000 per couple). This is the case even if one of you did not have an ownership interest in the property that was sold. 

To be eligible to make a contribution you don‘t have to buy another home once you have sold your existing home. You are also not required to buy a smaller home. You could buy a larger and more expensive one and make a downsizer contribution if you have access to other funds.

Find out more about downsizer contributions and the eligibility requirements here.

Please contact our advisers for individual advice.

This is general advice only and has not been prepared with your individual situation or needs in mind. For personalised advice, we highly recommend that you seek professional guidance from a qualified adviser.