With downsizer contributions, Members aged 55 years and older can contribute up to $300,000 per Member from the sale of their main residence.
The Downsizer contribution is neither a non-concessional contribution nor a concessional contribution. Therefore, it does not count towards either contribution caps. As it is not considered a non-concessional contribution, Members with a pension balance over $1.7 million may also be able to make downsizer contributions into the Fund. However, be mindful that the amount will still count towards the Member’s transfer balance cap.
Members do not need to meet the work test in order to make the downsizer contribution into super. This is good news for Members who are retired.
Trustees may be eligible for the downsizer measures if all of the following conditions are met:
If your home was only owned by one spouse and was sold, the spouse that did not have an ownership interest may also make a downsizer contribution, or have one made on their behalf, provided they meet all of the other requirements.
In order to be eligible, the contract of the sale of your home must be signed post 1 July 2018. For more guidance, please click here.
Even if you had rented out the home prior to selling it, you will still be eligible for this contribution, as long as the home had been owned and lived in for at least 10 years.
In order to make the contributions, you must complete the Downsizer Contribution Super Form. You can download the form by clicking the button below.
Homes that have been owned for 10 years or more (date of acquisition to sale settlement date) and located in Australia.
The below are ineligible:
There is no requirement that you would have to purchase a new home.
Yes, there is no requirement that both spouses should have legal interest over the property sold. Both spouses are allowed to contribute $300,000 each, $600,000 in total.
The downsizer contribution may be a way for Members who do not meet the work test to increase their retirement benefits. For more information on making non-concessional contributions, please see here.