With downsizer contributions, Members aged 55 years and older can contribute up to $300,000 per Member from the sale of their main residence.
Treatment of the downsizer contributions
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.
Eligibility for the downsizer contribution measure
Trustees may be eligible for the downsizer measures if all of the following conditions are met:
- You are 55 years of age and over at the time of the contribution,
- The amount that you are contributing is composed solely of the proceeds from selling your home,
- Your home is owned by you or your partner for 10 years or more prior to sale,
- Your home is located in Australia and is not a caravan, boat or other mobile homes,
- Proceeds from the sale of your home are either exempt or partially exempt from Capital Gains Tax (CGT),
- Downsizer contributions are made within 90 days of receiving the proceeds of the sale, which is generally at the date of settlement, and
- You have not made a prior downsizer contribution from the sale of another home
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.
Partial Main Residence
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.
What you need to do
In order to make the contributions, you must complete the Downsizer Contribution Super Form. You can download the form by clicking the button below.
FAQ
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:
- Caravans, motorhomes, mobile homes
- Vacant land
- Investment properties (unless partial Main Residence Exemption applies)
- Non-residential property
here 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.
