Home Downsizer Contributions

home downsizer

What do you need to know about making downsizer contributions into your super?

If you are 65 years of age or older, you can boost your retirement savings by contributing up to $300,000 into your super using money from the sale of your main residence. This is a tax-free contribution.

What are the benefits?

  1. It’s an easy way to increase your super balance
    For those who feel like they do not have enough funds saved for their retirement, this tax-free contribution is a good option to increase your super.
  2. You do not need work tests or age limits to apply for downsizer
    To make voluntary super contributions, people aged 67 to 74 need to satisfy a work test where they need to have worked for 40 hours in total over a minimum of 30 consecutive days. However, this home downsizer contribution does not require a work test.
  3. Annual contributions caps also do not apply
    Downsizing contributions will not be counted towards any contribution cap. This means that annual concessional and non-concessional contributions caps, which are $25,000 and $100,000 a year are irrelevant.
  4. Partners can take advantage of downsizer too
    Both members of a couple can each contribute $300,000, which means a total of $600,000 per couple can be contributed towards their super fund.

What are the eligibility requirements?

IMPORTANT NOTE: This information is general advice only and does not take into account your personal circumstances, goals and objectives. Therefore, you should consider its appropriateness for your circumstances before acting on this information.

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