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For many older Australian homeowners, the downsizer contribution option allows them to boost their retirement savings with earnings from the sale of their homes.

As of 1 July 2022, the minimum age for people eligible for the downsizer scheme will be reduced from 65 to 60.

This means that after this date, homeowners aged 60 or above can contribute up to $300,000 to their superannuation from the sale of their homes.

Who is eligible?

Besides the eligibility age, there are other criteria you must meet in order to qualify for the downsizer scheme. These are as follows:

  • You have owned the home (in your name or your spouse’s name, or both) for at least 10 years prior to the sale.
  • The home is in Australia and isn’t a caravan, houseboat or other mobile home.
  • The proceeds from the sale of the home are either exempt or partially exempt from capital gains tax (CGT) under the main residence exemption or would be entitled to such an exemption if the home was a CGT rather than a pre-CGT asset.
  • You provide your super fund with a ‘Downsizer contribution into super’ form, either before or when you make the contribution.
  • You make the contribution within 90 days of receiving the proceeds of the sale.
  • You have not previously made a downsizer contribution to your super.
     

Please note, if the home sold was only under your spouse’s name, you may also make a downsizer contribution, or have one made on your behalf, if you meet the above requirements.

It is also worth remembering that the $300,000 contribution limit applies to each spouse. So regardless of the total proceeds received from the sale, each spouse can contribute up to $300,000 each into their individual super funds.

Need more information?

To find out more about the downsizer scheme, eligibility criteria, how much you can contribute, and how to make contributions, please refer to the ATO website.

This article was previously prepared and published by AIA Australia Limited ABN 79 004 837 861 (AIA Australia) prior to Resolution Life’s acquisition of AIA Australia’s Superannuation & Investment life insurance business on 1 July 2023.

Important information

Where the information on this website is factual information only, it does not contain any financial product advice or make any recommendations about a financial product or service being right for you. Any advice is provided by Resolution Life Australasia Limited ABN 84 079 300 379, AFSL No. 233671 (Resolution Life), is general advice and does not take into account your objectives, financial situation or needs. Before acting on this advice, you should consider the appropriateness of the advice having regard to your objectives, financial situation and needs, as well as the product disclosure statement and policy document for the product. Any guarantee offered in the product is only provided by Resolution Life. Any Target Market Determinations for our products can be found at resolutionlife.com.au/target-market-determinations. 

Resolution Life does not make any representation or warranty as to the accuracy, reliability or completeness of material on this website nor accepts any liability or responsibility for any acts or decisions based on such information.

Resolution Life can be contacted at resolutionlife.com.au/contact-us or by calling 133 731.