Getting money into super - Downsizer Contributions
Superannuation remains a tax effective and flexible structure in which to hold assets to provide for our income needs in retirement. 

With limitations on the level of contributions we can make into super during our working lives, it can sometimes make saving a meaningful sum into Super difficult. 

It is, therefore, important to be aware of all opportunities available to make significant contributions to your Superannuation. 

One such opportunity is the “Downsizer Contribution”. 

Whilst not new (legislation introduced in 1 July 2018), this can be a very useful means to get money into super for someone who may otherwise be prevented from making contributions (due to age, work status or contribution cap restrictions), or who may otherwise not have the available money to contribute to super.

Who can use this strategy? 

  • you have to be aged 65 or older at the time of making the contribution (there is no maximum age limit),
  • the amount you are contributing is from the proceeds of selling your home,
  • your home was owned by you (or your spouse) for 10 years or more prior to the sale,
  • your home is in Australia and is not a caravan, houseboat or other mobile home,
  • the proceeds (capital gain or loss) from the sale of the home are either exempt or partially exempt from capital gains tax (CGT) under the main residence exemption,
  • you provide your super fund with a Downsizer contribution into super form either before or at the time of making your downsizer contribution,
  • you make your downsizer contribution within 90 days of receiving the proceeds of sale, which is usually at the date of settlement, and
  • you have not previously made a downsizer contribution to your super from the sale of another home.

How much can be contributed? 

  • A maximum contribution of $300,000 per person is permitted. 
  • A couple selling the family home could potentially move $600,000 into Superannuation from downsizing the family home.
  • Once in Super the contribution can be used to commence a “retirement phase pension” – benefiting from tax-fee earnings and tax-free income payments.
  • This contribution does not form part of an individual’s normal non-concessional contribution cap.

Importance of Advice

In the right circumstances the downsizer contribution can be a very valuable planning strategy, offering the ability to shelter significant funds in the superannuation environment and to reduce your personal tax and that of future beneficiaries.  

It does however, come with a number of strict qualifying rules and limitations that need to be met in order to be eligible, as well as, potential implications for other key financial considerations such as centrelink and how the contribution affects an individual’s lifetime total super balance. 

There are a number of rules and administrative requirements in order to successfully benefit from this strategy.  

Different strategies benefit individuals differently depending on their own circumstances.  It is recommended you speak to a financial adviser about your situation if you have any questions. For more information, please contact Graham Southgate on 1300 795 515 or email

This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. If you decide to purchase or vary a financial product, your financial adviser, Hillross Financial Services Limited and other companies within the AMP Group may receive fees and other benefits. The fees will be a dollar amount and/or a percentage of either the premium you pay or the value of your investments. Please contact us if you want more information. Prosperity Wealth Advisers Pty Ltd (ABN 32 141 396 376), is an Authorised Representative and Credit Representative of Hillross Financial Services Ltd, Australian Financial Services Licensee and Australian Credit Licensee.

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