Downsizer Contribution Eligibility Checker Australia

What Is a Downsizer Contribution?

A downsizer contribution lets eligible Australians make a one-off super contribution of up to $300,000 per person ($600,000 for couples) from the proceeds of selling their main residence. Unlike regular super contributions, downsizer contributions are not subject to the concessional or non-concessional caps and can be made regardless of your total super balance. They count toward your Transfer Balance Cap only when moved into the retirement phase. As of 1 January 2023, the eligibility age was reduced to 55 years — down from the original 65 and subsequent reduction to 60.

Eligibility Requirements for a Downsizer Contribution

To make a downsizer contribution in 2026, all of the following must be true: (1) You are aged 55 or over at the time of contribution. (2) The property was your main residence at some point and was owned by you or your spouse for at least 10 years. (3) A full or partial CGT main residence exemption would apply to the sale (the home is eligible for the exemption even if you do not actually claim it). (4) You have not previously made a downsizer contribution from an earlier home sale. (5) The contribution is made within 90 days of settlement (i.e., receiving the proceeds). Your super fund must be notified using the ATO's Downsizer Contribution Into Super form.

Tax Treatment of Downsizer Contributions

Downsizer contributions are treated as non-concessional (after-tax) contributions for tax purposes — they are made from after-tax sale proceeds and do not generate a personal tax deduction. However, they do not count against your $110,000 annual non-concessional contribution cap and are exempt from the total super balance test that normally blocks large non-concessional contributions. Once inside super, the contributions earn at the 15% accumulation rate or 0% once in pension phase. Moving a $300,000 downsizer contribution into a retirement phase ABP immediately shelters all future earnings from income tax.

Strategy Tips for Maximising Downsizer Benefits

Couples can each contribute up to $300,000, allowing $600,000 to be moved into super from one home sale. This can significantly boost super balances close to or above Age Pension means test thresholds. Because the family home is exempt from the Age Pension assets test but super is not, carefully timing the downsizer contribution near retirement can affect pension eligibility — consider this before selling. Combining a downsizer contribution with the Transfer Balance Cap ($1.9 million) requires planning: if your combined super already exceeds $1.9 million each, the downsizer contribution may not be fully moved to retirement phase. Seek advice from a licensed financial planner for large contributions.