Since 2023, the downsizer contribution age dropped from 60 to just 55 — meaning if you’re selling the family home in your mid-50s, you can now put up to $300,000 per person ($600,000 per couple) of the proceeds straight into super, tax-free, with no upper age limit and no total super balance test. Here’s exactly how it works and where people trip up.
The short version
Since 2023, the downsizer contribution age dropped from 60 to just 55 — meaning if you’re selling the family home in your mid-50s, you can now put up to $300,000 per person ($600,000 per couple) of the proceeds straight into super, tax-free, with no upper age limit and no total super balance test. Here’s exactly how it works and where people trip up.
In this guide
- What is a downsizer super contribution?
- Who's eligible? The five rules that matter
- How much can you actually contribute?
- Why this is more generous than a normal super contribution
- The traps Adelaide retirees commonly miss
Nasser Zreika, Director and Senior Financial Adviser at Lincoln Wealth Advisers, has been advising Adelaide retirees on superannuation and retirement strategy since 2000.
What is a downsizer super contribution?
A downsizer contribution lets eligible Australians put money from the sale of their home into superannuation, outside the normal contribution caps.
It’s one of the few ways older Australians with large amounts tied up in property can move that wealth into the concessionally-taxed super environment in one hit — and despite the name, you don’t actually need to buy a smaller home afterwards.
Who’s eligible? The five rules that matter
- Age: you must be 55 or older at the time of the contribution (reduced from 60 in January 2023).
- Ownership period: you or your spouse must have owned the home for at least 10 years.
- Main residence: the property must have been your main residence at some point during that ownership — it doesn’t need to be your main residence right at the time of sale.
- Timing: you must make the contribution within 90 days of settlement.
- One shot only: the downsizer contribution can only be used once per person, ever, even if you sell more than one home in your lifetime.
How much can you actually contribute?
| Situation | Maximum downsizer contribution |
|---|---|
| Single | $300,000 |
| Couple (each spouse contributes separately) | $600,000 combined |
The contribution doesn’t need to equal the full sale proceeds — you can contribute any amount up to your cap.
Both partners must independently meet the eligibility rules (including the age 55+ requirement), but oddly, only one of you needs to have been on the title of the property.
Why this is more generous than a normal super contribution
- No age-related work test — unlike other voluntary contributions once you’re over 67, there’s no requirement to be working.
- No total super balance cap — normally, if your total super balance is $1.9 million or more, you can’t make non-concessional contributions at all. The downsizer contribution has no such test, so even someone with $3 million in super can still add $300,000 more.
- Doesn’t use your contribution caps — it sits entirely outside the concessional ($30,000) and non-concessional ($120,000) caps, so you can still make other contributions in the same year.
The traps Adelaide retirees commonly miss
Missing the 90-day window. The clock starts at settlement, not when you decide to sell — extensions are rarely granted.
- Assuming your fund automatically accepts it. Not all super funds accept downsizer contributions, and SMSFs in particular may need their trust deed checked first.
- Forgetting the correct ATO form. You must submit the downsizer contribution form to your fund either before or at the same time as the contribution — funds can reject contributions submitted without it.
If you’re weighing up whether to grow your balance this way and then manage it yourself, our guide to whether an SMSF is worth it covers the balance thresholds where that starts to make sense.
Frequently Asked Questions
Ready to find out where you stand?
Book a free, no-obligation appointment with Nasser Zreika to see how this applies to your situation.
General Advice Warning: This article contains general information only and does not take into account your individual objectives, financial situation, or needs. Before making any financial decisions, you should consider whether the information is appropriate to your circumstances and seek personal financial advice. Nasser Zreika and Lincoln Wealth Advisers are Authorised Representatives of Synchron, AFS Licence No. 243313.