Downsizer contribution

Boost your savings with the downsizer contribution

Members over 65 are able to make a downsizer contribution to super, using the proceeds from the sale of their family home.

How does it work?

If you are over age 65 and have lived in your home for 10 or more years, you could be eligible to make a downsizer contribution. This allows you to contribute up to $300,000 from the proceeds of selling your family home to your super account. The contribution is capped on an individual basis, so a couple can contribute a total of $600,000 (as long as you are both over 65).

What are the benefits?

The proceeds available in selling a well-valued property and downsizing to a smaller home or apartment could be a good way to boost retirement savings. The downsizer contribution is one of the only ways for those that are already retired to make a large after-tax contribution to super. And money kept outside of super can be subject to higher tax requirements.

In addition, the downsizer contribution will not count towards your contribution caps. Nor is it necessary to have less than $1.6 million in super and meet the work test. So if you are currently unable to make after-tax contributions to your super due to these limitations, the downsizer contribution could be a great option for you.

How to make a downsizer contribution

You have 90 days following the sale of your home to make the downsizer contribution to your super account.

To do so, simply complete the Downsizer Contribution Form, available on the Forms and Documents page. You will need to submit this form to Intrust Super when you make your contribution.

Am I eligible?

The following eligibility requirements apply to the downsizer contribution:

  • You must be 65 years or older.
  • You or your partner must have lived in the home for at least 10 years.
  • You must not have previously made a downsizer contribution from the sale of another home.
  • The contribution must come from the proceeds of selling your home.
  • The contract of sale must be dated on or after 1 July 2018.
  • You must make the contribution within 90 days of receiving the proceeds of sale.

Further eligibility requirements can be found on the ATO website.

Rules to be aware of
  • If you are not able to make your contribution within 90 days, you must apply to the ATO for an extension.
  • There is no requirement for you to purchase a new property of lesser value – or even to purchase a new home at all.
  • If you are receiving Centrelink benefits (such as the Age Pension), the contribution could affect your entitlements.
  • The contribution will still count towards the transfer balance cap, which limits the amount that can be transferred from superannuation to the retirement phase. This cap is currently set at $1.6 million.

We would strongly recommend you speak to an Intrust360° adviser to ensure you are receiving the best outcome.