Downsizer super contribution
Special contribution options for seniors selling their home
You can use the proceeds of downsizing your home to boost your retirement without the limitations of contribution caps or other restrictions, and it's tax-free!
What is a downsizer contribution?
A downsizer contribution is a tax-free voluntary contribution into your super of up to $300,000 from the proceeds of the sale of your primary home. This payment is not included in your contribution caps, and you can still make this contribution after you turn 75.
What are the eligibility rules for downsizer contributions?
To make a downsizer super contribution, you and your property must comply with these rules.
- you must be at least 55 years of age when you make the contribution
- the home must be your primary residence, and be located in Australia
- it must have been owned by you or your spouse for at least 10 years
- the home must be a building, not a houseboat, caravan, RV etc
- you haven't made a downsizer contribution before
- your contribution is made within 90 days of receiving the money from the sale (this is usually the date of settlement)
- you provide Prime Super with a completed copy of the downsizer contribution form, either before making the contribution or at the same time
Downsizer contribution can make a sizeable impact on your super and really boost your retirement income. Eligible contributions aren't included in your contributions caps. Since you can still do it after you turn 75 (unlike other contributions), it's also a way of topping up your super and adding more years to your retirement income stream.
What if the home is only owned by one spouse?
Even if the home is only in one person's name, their spouse can also make a downsizer contribution into their super (or have one made for them) as long as all the other rules of the downsizer scheme are met.