A downsizer contribution is a non-concessioanl contribution, but it doesn’t count towards the contribution cap.
How much you can contribute
Up to $300,000 as an individual or up to $600,000 as a couple, however the total contributions cannot be more than the sale proceeds.
Eligibility
- From 1 January 2023, 55 years or older at the time of the contribution. From 1 July 2022, 60 years or older.
- You or your spouse owned the home for more than 10 years before the sale. The ownership period is calculated from the date of settlement of purchase to the date of settlement of sale. (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.)
- Your home is exempt or partially exempt from capital gains tax (CGT) under the main residence exemption, or would be entitled to an exemption if the home was a CGT asset rather than a pre-CGT asset (acquired before 20 September 1985).
- You make your downsizer contribution within 90 days of receiving the proceeds of sale (usually at the date of settlement).
- You have not previously made a downsizer contribution to your super from the sale of another home or from the part sale of your home.
- You provide your super fund with the Downsizer contribution into super form (NAT 75073) either before or at the time of making your downsizer contribution