What’s a downsizer contribution
A downsizer contribution lets you add money to your super savings from the sale of your home.
If you’re eligible, you can contribute up to $300,000 per person, or up to $600,000 as a couple, but not more than the total proceeds of selling your home.
Selling your home could help increase the income you have available in retirement. It’s a big decision, so make sure it’s right for you and your retirement plan. Consider the lifestyle you want in retirement and how much it will cost.
Check your eligibility
You can make a downsizer contribution if:
- You’re 55 or over,
- You or your spouse has owned your home for at least 10 years before the sale,
- Your home is a residential building in Australia – not a caravan, houseboat, or mobile home,
- The sale qualified for the main residence capital gains tax (CGT) exemption,
- You have not made a downsizer contribution before, and
- Your contribution is made within 90 days of selling your home (usually at settlement), unless a time extension is granted.
Important tip: You may be able to make a downsizer contribution if you sell an eligible property — regardless of whether you buy a smaller or similar home or even rent.
Downsizer contributions: myth vs fact
| Myth | Fact |
|---|---|
| You have to downsize your home. | You don't have to downsize to a smaller or cheaper home. If you sell an eligible property, you may be able to use some of the proceeds to boost your super, regardless of what you do next. |
| It counts towards your contribution caps. | It doesn't count towards your before-tax (concessional) or after-tax (non-concessional) contribution caps. Downsizer contributions are separate from your standard contribution limits. |
| You have to be working to contribute. | You don't need to be working. You can make a downsizer contribution even if you're retired or no longer employed. |
| Renting out your home means you’re not eligible. | You may still be eligible. If the property was your main home at some point and meets the eligibility requirements, it may qualify even if it has been rented out. |
| The property needs to be in joint names. | It doesn't need to be jointly owned. Even if only one person owns the property, spouses may both be able to make a downsizer contribution if the eligibility requirements are met. |
| There’s an upper age limit for making a downsizer contribution. | There’s no upper age limit. If you meet the eligibility requirements, you can make a downsizer contribution later in life. |
Case study
Maria and Craig are both 65 and have lived in their family home for the past 25 years.
They paid their mortgage off last year and their kids have moved out, so they’ve decided to downsize to a property with less maintenance. They sold their home for $1.3 million and bought a new property for $900,000.
With an additional $400,000 of remaining funds, they chose to make a downsizer contribution. They contributed $200,000 each to their super accounts. Instead, if they wanted to add more to Maria’s super, they could split the contributions by adding $300,000 to Maria’s super and $100,000 to Craig’s super. The choice is theirs.
Making your downsizer contribution
Get ready to make your contribution
- Have a super account. You must have an active AustralianSuper super account open to make the contribution.
- Download and complete your form. Make sure all required fields and information is complete on the ATO’s Downsizer Contribution form.
- Submit your completed form. You must submit your form before or at the same time you make your contribution. The fastest way is to upload it online.
- Make your contribution. Log into your account online to receive your unique Downsizer BPAY details. Make your contribution via the app or your online banking.
Important tip: if your spouse is also making a downsizer contribution, they’ll need to have a separate super account and submit their own application.
After you apply
If everything is complete, we’ll process your application. Your money will be added to your super account the day we receive it.
We’ll contact you if there’s missing information, or you don’t have an active super account. If you don't provide the missing details, we’ll close your request and refund your money.
After your application is processed, you’ll receive a confirmation by email or letter.
If you have a retirement income account
If you’re working towards your retirement and have a TTR Income account, you can make the downsizer contribution to your active AustralianSuper super account.
If you’ve already retired and have a Choice Income account or don’t have an active super account, you must open a super account and follow the Get ready to make your contribution section above.
You could then refresh your income account and top-up your savings.
If you need more time
You can apply for an extension with the ATO for more time if you can’t make your contribution within 90 days of the sale of your home. You’ll still need to submit your completed Downsizer Contribution form before or at the same time (same date) when you make your contribution. For more details, visit the ATO website.
Things to consider
Making multiple downsizer payments
You’ll need to complete and submit a new form for each payment.
Transfer balance cap
From 1 July 2026, the general transfer balance cap is $2.1 million for individuals commencing their first retirement income account1. Consider this when making your downsizer contribution as part of your retirement plan.
Government Age Pension
Selling your home can affect your Government Age Pension. This can happen whether or not you make a downsizer contribution. Your downsizer contribution will be included in the assets and income tests when determining your eligibility for the Age Pension. You may choose to contact Services Australia’s Financial Information Service (FIS) to learn more about how selling your home may affect your eligibility for the Government Age Pension and other government benefits.
Tax deduction exempt
You’re unable to claim a tax deduction from money used as a downsizer contribution.
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Disclaimers
- If you commenced a retirement income account prior to 1 July 2026, you may have a personal transfer balance cap from $1.6 million to $2 million, depending on when you commenced your first retirement income account.