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Downsizing contributions


Are you thinking of downsizing your home to fund your retirement?

Are you age 60 or over and thinking about downsizing your family home? The government will allow you to contribute up to $300,000 (so $600,000 combined for a couple) of the proceeds of the sale of your family home, if owned for 10 years or more, into your super. The measure could offer a practical way to translate any money you have left over from downsizing your home into extra retirement income from your super.

Why consider downsizing contributions?

Making a downsizing contribution may be the only way to contribute more to super once you’ve retired. That’s because existing age and balance rules that restrict contributions to super, specifically for those aged 75 or over, don’t apply to downsizing contributions. Learn more about current restrictions.

Who is eligible to make a downsizer contribution?

To be eligible:

  • You must be 60 years or older at the time you make the contribution
  • The contract of sale on your home must be on or after 1 July 2018
  • The proceeds of selling your home are either exempt or partially exempt from capital gains tax (CGT) under the main residence exemption or, if the home was acquired before 20 September 1985, would have been exempt
  • Your home is owned by you or your spouse for 10 years or more prior to the sale
  • Your home is in Australia and not a caravan, houseboat or other mobile home
  • You have previously not made a downsizer contribution from the sale of another home
  • You have 90 days from the date of settlement to contribute the proceeds from the sale of your home into super

You can find the full list of eligibility on the Australian Taxation Office (ATO) website.

What else is there to consider?

  • If you intend to use your home proceeds to help fund a regular income in retirement through a super income stream, it’s important to note that you have a personal transfer balance cap up to $1.7 million on the total amount that can be transferred from a super account into a tax-free super income stream. This includes any monies contributed from the sale of your home. You can find out your personal transfer cap by contacting the ATO or logging MyGov.
  • Your super balance is assessed for your eligibility for the government age pension, whereas the value of your family home is not. So you may lose your entitlement to the age pension when an exempt asset, being your principle residence, moves into super, an asset-tested investment.

How to make a contribution

Complete the Downsizer contribution into super form available on the Australian Taxation Office (ATO) website and provide the form to us via email, post or in person. The form must be provided when making, or prior to making, your contribution.

Email us

GPO Box 2924
Brisbane QLD 4001

In person:
(Monday to Friday, 8.30am to 5.00pm)
30 Little Cribb Street
Milton QLD 4064

We're here to help

Our customer service representatives can help you get the future you want by making the right choices today.

Call  13 11 84

Where to find more about downsizing contributions?

To find out more about downsizer contributions, visit the ATO website.

As with any major financial decision, we encourage you to speak to a financial adviser. To speak to an Australian Retirement Trust adviser, call us on 13 11 84.