The downsizer contribution is one of the most generous super strategies available. If you're 55 or older and sell your home, you can contribute up to $300,000 to super, regardless of your age, work status, or existing super balance. For a couple, that's $600,000 combined. See how it interacts with the Age Pension asset test and Transfer Balance Cap.
Eligibility Requirements
You must meet ALL of these:
- Aged 55 or older at time of contribution
- Owned the home for at least 10 years
- Home was your main residence at some point
- Home is in Australia
- Contribution made within 90 days of settlement
- Never made a downsizer contribution before (one-time only)
What Makes It Special
The downsizer contribution bypasses almost all normal super restrictions:
| Normal Rules | Downsizer Rules |
|---|---|
| Normal non-concessional caps and balance limits apply | Separate $300K downsizer cap with no total super balance limit |
| $120K non-concessional cap | $300K per person |
| General transfer balance cap can block non-concessional contributions | No total super balance limit |
| Age 75 cut-off | No age limit |
Example: The Smiths Downsize
John (72) and Mary (70) sell their Sydney home for $1.5 million. They've lived there for 25 years. They buy a smaller apartment for $800,000, leaving $700,000.
Each can contribute $300,000 to super as a downsizer contribution. Total: $600,000 added to their retirement savings, despite being over 70 with no work test.
Run the stress test: Model your downsizer contribution and see the impact on Age Pension and retirement projections in one place. Run the Advanced Calculator
⚠️ Age Pension Warning: Downsizer contributions count toward the Age Pension assets test. See our detailed article: The Downsizer Contribution Trap, when it hurts more than it helps.
$300K downsizer boost to super = great. But Age Pension impact? Model your complete downsizer strategy with pension trade-offs. Calculate downsizer impact →
Process: How to Make the Contribution
- Complete the Downsizer contribution into super form (NAT 75073)
- Give the form to your super fund BEFORE or WITH the contribution
- Transfer funds within 90 days of settlement
- Your fund will report it to the ATO
Accumulation calculator modeling a downsizer contribution
Strategic Considerations
- Transfer Balance Cap: Downsizer contributions don't count toward your TBC until you start a pension
- Tax-free vs taxable: The contribution is non-concessional, so withdrawals after 60 are tax-free
- Estate planning: Super death benefits have different tax treatment than personal assets
Common mistakes to avoid
- Missing the 90-day deadline, contributions must land in super within 90 days of settlement
- Forgetting the one-time rule, you can only ever make one downsizer election per person, lifetime
- Ignoring Age Pension impact, the full amount counts as an assessable asset immediately
- Not completing NAT 75073, without the form, the fund may treat it as a normal non-concessional contribution
Compare strategies with the downsizer contribution planner and the Advanced Australian retirement calculator before you exchange contracts.
Key tip: You don't have to actually "downsize." You can sell and rent, or even sell and buy something more expensive. The name is misleading; it is really a "home sale contribution."
Sell for $1.5M, buy for $800K = $600K available. But TBC, Age Pension, and estate planning all matter. Model your complete downsizer strategy. Calculate the full impact →
Model Your Downsizer Contribution Strategy
See the precise impact on your Age Pension, Transfer Balance Cap, retirement income, and estate planning. Calculate before you sell.
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