The Contributing the proceeds of downsizing into superannuation measure was one of several announced in the 2017–18 Budget as part of the government’s package of reforms to reduce pressure on housing affordability in Australia.

From 1 July 2018, if you are 65 years old or older and meet the eligibility requirements, you may be able to choose to make a downsizer contribution from the proceeds of selling your home.

The downsizer contribution is an amount of up to $300,000 that can be paid in to your super, from the proceeds of selling your home. If you have a spouse, the total contribution is up to $600,000 ($300,000 each).

A downsizer contribution does not count towards your contribution caps,1 and can still be made if you have a total super balance greater than $1.6 million.

Downsizer contributions are only available where the contract of sale was exchanged on or after 1 July 2018, and must be made within 90 days of receiving the proceeds of sale.

Eligibility for the downsizer measure

You will be eligible to make a downsizer contribution to super if you can answer yes to all of the following:

  • you are 65 years old or older at the time you make a downsizer contribution (there is no maximum age limit)
  • the amount you are contributing is from the proceeds of selling your home where the contract of sale exchanged on or after 1 July 2018
  • your home was owned by you or your spouse for 10 years or more prior to the sale – the ownership period is generally calculated from the date of settlement of purchase to the date of settlement of sale
  • your home is in Australia and is not a caravan, houseboat or other mobile home
  • the proceeds (capital gain or loss) from the sale of the home are either exempt or partially exempt from capital gains tax (CGT) under the main residence exemption, or would be entitled to such an exemption if the home was a CGT rather than a pre-CGT (acquired before 20 September 1985) asset
  • you have provided your super fund with the Downsizer contribution into super form either before or at the time of making your downsizer contribution
  • you make your downsizer contribution within 90 days of receiving the proceeds of sale, which is usually at the date of settlement
  • you have not previously made a downsizer contribution to your super from the sale of another home.

To find out more, call GFP 46480431. 

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