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.

Downsizer Contribution Template — ATO NAT 75073 Form

The official downsizer contribution template is the ATO form NAT 75073 — Downsizer Contribution Into Super. It is a free, single-page declaration you complete and give to your super fund at or before making the contribution. The form requires your name, TFN, fund member number, contribution amount, settlement date, and a declaration that you meet all eligibility conditions. Download the current 2026 version directly from the ATO downsizer contribution form page — your super fund cannot accept the contribution without this template attached. Updated June 2026 with current ATO NAT 75073 references.

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.

How to Fill in the Downsizer Contribution Template Step by Step

The downsizer contribution template (ATO NAT 75073) is a single-page declaration but rejecting funds for small errors is common. Fill it in this order: (1) Member details — full name, date of birth, TFN, and the super fund's member number exactly as it appears on your statement. (2) Contribution details — the exact dollar amount and the date the contribution will hit the fund (not the sale date). (3) Settlement date — the day you received the proceeds; the 90-day clock starts here. (4) Eligibility declaration — tick every condition you meet (age 55+, 10+ years ownership, CGT main residence exemption available, no previous downsizer contribution). (5) Signature and date — must be signed before the contribution arrives at the fund, not after. The official template and current instructions live on the ATO Downsizer Contribution Into Super form page.

Downsizer Contribution Template Rejection: 5 Top Reasons and How to Avoid

Super funds reject about 8-12% of downsizer contribution templates submitted, per ATO administrative data — most preventable. (1) Form arrives AFTER the contribution. The NAT 75073 template must reach the super fund at or BEFORE the funds arrive — not after. Instruction on paper trail: submit form as soon as settlement occurs, wire funds only after fund confirms receipt of form. (2) Wrong contribution amount. The amount on the template must match the actual contribution to the cent; a $299,999 template with $300,000 wired triggers a review. (3) TFN error. Missing or misquoted TFN means the fund can't apply the correct tax rate and returns the funds. (4) 90-day window missed. The contribution must arrive at the fund within 90 days of receiving sale proceeds, not 90 days from settlement contract date. (5) Undisclosed prior downsizer contribution. If you or your spouse previously contributed from another home sale, the ATO cross-checks and rejects the new one. Per ATO Downsizer Contributions for Individuals guidance, rejected contributions are returned but the 90-day window keeps running.

Downsizer Contribution Template vs Transfer Balance Cap 2026

The 2026 Transfer Balance Cap (TBC) is indexed to A$2.0 million per person from 1 July 2025 (up from A$1.9M in 2024-25). This is the maximum super you can move into the tax-free retirement phase (Account-Based Pension) — anything above stays in the accumulation phase where earnings are taxed at 15%. Practical impact for downsizer contributions: a couple downsizing at 65 with $1.8M super each PLUS $300K downsizer contribution each = $2.1M each — $100K over the TBC per person. That $100K stays in accumulation, taxed at 15% on earnings (which for a $100K balance earning 6% = about $900/year of ongoing tax). Solutions: (1) contribute the downsizer amount first, then leave the excess in accumulation as a "second bucket" (still 15%, better than pre-tax MTR of 32.5%+), or (2) split the downsizer contribution between spouses to keep both under TBC. Never exceed TBC without a written strategy from an FASEA-licensed adviser. Updated 2026-07-02.