A downsizer contribution can allow an eligible person aged 55 or over to contribute up to $300,000 from the proceeds of selling an eligible home into super.

A couple may be able to contribute up to $300,000 each, limited by the sale proceeds and each person's eligibility.

The contribution must usually be made within 90 days of receiving the proceeds, and the home generally needs to have been owned by either spouse for at least 10 years.

The rule can create valuable contribution capacity, but it does not make selling the home or moving the money into super automatically appropriate.

The current eligibility checklist

As at 24 July 2026, check every item before contributing:

  • You are 55 or older when the contribution is made.
  • The home is in Australia and is not a caravan, houseboat or other mobile home.
  • You or your spouse owned the home for at least 10 years.
  • The sale qualifies for a full or partial main residence CGT exemption, or would qualify if the home were a post-CGT asset.
  • You make the contribution within 90 days of receiving the sale proceeds, usually settlement, unless the ATO grants an extension.
  • You have not made a downsizer contribution before.
  • The amount does not exceed your $300,000 individual maximum or the relevant sale proceeds.
  • You give the fund a valid Downsizer contribution into super form before or when each contribution is made.
  • Your fund accepts the contribution and has your tax file number.

Eligibility can become more complex where ownership changed between spouses, the home was inherited, it was used to produce income, there was vacant land, there are foreign-residency issues or settlement timing is unusual. Obtain tax advice on the specific property.

You do not have to buy a smaller home

Despite the name, the rules do not require you to:

  • move to a smaller property;
  • buy a cheaper property;
  • purchase another home at all; or
  • contribute all remaining sale proceeds.

What matters for the contribution is the sale of an eligible dwelling and satisfaction of the rules. The housing decision still needs to work on its own merits.

How much can be contributed?

The maximum is generally the lesser of:

  • $300,000 for each eligible person; and
  • the relevant proceeds from selling the home after taking account of downsizer contributions made by the individual or spouse.

If both spouses are eligible and the proceeds are sufficient, the combined maximum can be $600,000. Both may potentially contribute even if only one spouse held the legal ownership interest, provided the ownership and other rules are satisfied.

The contribution can be split across funds, but the paperwork and aggregate limits still apply. A separate form is generally required for each contribution.

What the contribution does and does not count towards

A valid downsizer contribution:

  • does not count towards the concessional contributions cap;
  • does not count towards the non-concessional contributions cap;
  • is reflected in your total super balance when it is next calculated; and
  • can affect how much can later be moved into retirement phase under the transfer balance cap.

You cannot claim a personal super contribution tax deduction for it. If the ATO later determines that the contribution was not eligible, the fund may need to assess whether it can accept it as another kind of personal contribution. That could bring contribution-cap consequences or require the amount to be returned.

The 90-day rule needs a calendar, not a reminder

The contribution must usually be made within 90 days of receiving the proceeds, which is generally settlement. The approved form must reach the fund before or when the contribution is made.

Before settlement:

  1. confirm the intended amount for each spouse;
  2. check each fund will accept it;
  3. obtain and complete the current ATO form;
  4. record the settlement date and 90-day deadline;
  5. allow for bank and fund processing; and
  6. retain evidence of the sale, ownership period, contribution and forms.

The ATO can grant an extension in some circumstances, but an extension should not be assumed. If timing has already become difficult, seek advice and contact the ATO promptly.

The strategic decision

Eligibility answers, "Can I make the contribution?" It does not answer, "Should I?"

FactorReason to consider contributingReason to retain money outside superRetirement purposeMoney is intended to fund retirementMoney is needed for a new home, renovation or near-term spendingTax environmentSuper may offer a concessional tax environmentPersonal tax position or other structures may be suitableAccessYou have met a condition of release or do not need immediate accessAccess to the amount may be restrictedInvestmentFund offers suitable investment and retirement optionsAvailable fund options, fees or risk do not fitEstate planningSuper death-benefit settings support the planWill, trust or direct ownership better supports the intended outcomeGovernment benefitsEffect has been modelledContribution may reduce an Age Pension or other entitlementContribution opportunitiesDownsizer capacity complements other super strategiesUsing the full amount may crowd out another priority

The answer may be a partial contribution rather than all or nothing.

Age Pension consequences

The principal home is generally treated differently from financial assets under the Age Pension means tests. After a sale, money retained or contributed to super may become assessable depending on age, whether an income stream has started and other circumstances.

Selling a home can affect Age Pension under the assets and income tests whether or not a downsizer contribution is made.

Before settlement, compare:

  • the home you expect to own after the move;
  • sale proceeds reserved for the replacement home;
  • cash and investments left over;
  • each partner's age and super status;
  • current and prospective income streams; and
  • the current means-test treatment confirmed by Services Australia.

Do not make the contribution solely to improve an Age Pension outcome without an individual assessment.

A hypothetical couple

Suppose a couple aged 67 and 64 sells a long-held home. They plan to buy a lower-maintenance property, reserve cash for renovations and contribute part of the surplus to super.

Both appear to meet the age requirement, and only one name was on the old title. Before contributing, they still need to:

  • confirm the 10-year ownership and main residence conditions;
  • determine the actual surplus after the new purchase and costs;
  • decide which spouse's super should receive each amount;
  • test Age Pension treatment for both partners;
  • check the funds and paperwork;
  • consider retirement-phase limits; and
  • preserve enough accessible cash for the renovation.

Their maximum eligibility is not necessarily their best contribution. This example is illustrative only.

Other costs can outweigh the contribution benefit

The home sale itself can involve:

  • agent and legal fees;
  • stamp duty and transaction costs on a replacement property;
  • moving and renovation costs;
  • community, family and lifestyle trade-offs;
  • different ongoing rates, strata or maintenance; and
  • CGT where the main residence exemption is only partial.

Model the complete housing and retirement decision. Do not judge the move from the super rule alone.

Who does what?

Professional or organisationRoleRegistered tax agentProperty CGT, ownership and contribution eligibility issuesFinancial adviserCash flow, super allocation, investment, retirement and Age Pension scenariosConveyancer or lawyerSale, purchase, settlement and legal ownershipSuper fundAcceptance, form process, investment and pension optionsServices AustraliaGovernment-payment assessment and current means-test treatment

Your next steps

  1. Confirm the settlement date and ownership history.
  2. Ask your tax adviser to check the main residence and eligibility conditions.
  3. Calculate the true surplus after the replacement home and all costs.
  4. Compare full, partial and no-contribution scenarios.
  5. Test super access, retirement-phase and government-benefit consequences.
  6. Confirm the fund and form process well before the 90-day deadline.

Connect the property decision to the retirement plan

Our expert Sydney-based financial advisers can help you compare how much to retain, contribute and invest after a home sale, coordinated with your tax and legal advisers.

‍Arrange a downsizer contribution conversation

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This article contains general information only. It does not take into account your objectives, financial situation or needs and is not tax or legal advice. Eligibility and government-payment treatment depend on your circumstances. Obtain personal advice before selling, contributing or restructuring assets.