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Downsizer Contributions
Contribute up to $300,000 from the sale of your home
The downsizer contribution is the "joker card" of super contributions. It lets you contribute up to $300,000 per person from the sale of your family home – regardless of your age, work status, or super balance. Even if you're over 75 or have more than $2.1 million in super, you can still make a downsizer contribution.
This guide explains downsizer contributions in detail: eligibility requirements, how to make one, and important considerations before you decide if this strategy is right for you.
Key Features at a Glance
Why Downsizer Contributions Are Special
Unlike other super contributions, downsizer contributions bypass most of the usual restrictions:
✅ No Age Limit
No maximum age – you can make a downsizer contribution at 75, 85, or beyond.
✅ No Work Test
You don't need to meet the work test, even if you're over 67.
✅ No TSB Limit
You can contribute even if your super balance exceeds $2.1 million.
✅ Cap-Exempt
Doesn't count towards your CC or NCC caps (but does count towards TSB for future years).
This makes downsizer contributions particularly valuable for older Australians who have been blocked from other contribution pathways.
Eligibility Requirements
To make a downsizer contribution, you must meet all of the following criteria:
Age Requirement
You are 55 or older at the time of contribution (previously 65, then 60, reduced to 55 from January 2023).
Ownership Duration
You or your spouse owned the home for at least 10 years before the sale. Ownership doesn't have to be continuous.
Main Residence
The property was your main residence at some point during ownership (it doesn't need to be your main residence at the time of sale).
Australian Property
The property is located in Australia (overseas properties don't qualify).
CGT Partial Exemption Eligible
The sale must be exempt or partially exempt from CGT under the main residence exemption. A vacant block alone won't qualify.
First Downsizer Contribution
You have not previously made a downsizer contribution (it's a once-in-a-lifetime opportunity per person).
Timing
The contribution is made within 90 days of settlement (or a later date allowed by the Commissioner).
How to Make a Downsizer Contribution
Sell your eligible property
Ensure it meets all the criteria above.
Complete the Downsizer form
ATO form NAT 75073 (or your fund's version).
Submit the form to your super fund
This must be done at or before the time of contribution.
Transfer the funds
Within 90 days of settlement.
⚠️ Critical Timing
The ATO form must be received by your super fund at or before the contribution is made. If you contribute first and submit the form later, it won't qualify as a downsizer contribution – it will be treated as an NCC (which could exceed your cap).
Important Considerations
Age Pension Impact
Super is generally not counted as an asset for the Age Pension until you reach pension age. However, once in super, it IS counted under the assets test.
If you currently receive the Age Pension, a large downsizer contribution could reduce your pension entitlement. Run the numbers before committing – our Age Pension Calculator can help.
💡 Assets Test Exemption (Temporary)
Sale proceeds held in a bank account are assessed immediately under the assets test. However, the government sometimes provides temporary exemptions for downsizers – check current rules on the Services Australia website.
You Don't Actually Have to Downsize
Despite the name, you're not required to buy a smaller home or move to a cheaper property. You could:
- Sell and rent
- Sell and buy a similar-priced property
- Sell and buy a more expensive property (using other funds)
- Sell and move in with family
The only requirement is selling an eligible home – what you do next is up to you.
Both Spouses Can Contribute
Each eligible spouse can contribute up to $300,000, for a combined total of $600,000.
Example: John (62) and Mary (58)
They sell their family home of 30 years for $1.2 million:
- John (aged 62): Can contribute up to $300,000 ✓
- Mary (aged 58): Can contribute up to $300,000 ✓
- Both meet the minimum age of 55
- Combined contribution: up to $600,000
What If One Spouse Is Under 55?
Good news: If one spouse is 55 or over, both spouses can make downsizer contributions — even if the other spouse is under 55. The younger spouse doesn't need to meet the age test themselves, as long as one spouse qualifies.
This opens up powerful planning opportunities, especially for Centrelink purposes — super held by someone under Age Pension age (67) isn't assessed under the assets test.
📖 Read the Detailed Guide
Learn more about downsizer contributions for couples with age differences, including Centrelink strategies and worked examples. →
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Find a PlannerLast updated: 9 July 2026
Sources: Australian Taxation Office
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