Sold Your Home? How the 'Downsizer Contribution' Lets You Stuff $300k into Super Tax-Free

⚠️ 2026 Eligibility Check: The eligibility age is now firmly set at 55 years old. However, strict deadlines apply: you must submit the ATO form before or at the time the money hits your Super fund.

🏠 Sell Your Home, Boost Your Super

You have lived in your family home for decades. The kids have moved out, and the house is too big to maintain. You decide to sell it for $1.5 million and downsize to a smaller apartment.

You want to put the surplus cash into Superannuation to invest tax-effectively. But there is a problem: the annual "Non-Concessional" cap is tight (approx $120,000), and if your Super balance is too high, you can't contribute at all.

Enter the "Downsizer Contribution." This government rule allows you to inject a massive lump sum into Super, completely bypassing the standard caps and restrictions.

What is the Downsizer Contribution?

The Downsizer measure allows eligible individuals to contribute up to $300,000 from the proceeds of selling their home into their Superannuation fund. Crucially, this contribution does not attract the standard 15% contributions tax upon entry.

For a couple, this is huge. Both spouses can claim it, meaning you can potentially shift $600,000 into the tax-friendly Super environment in a single year.

Sold Your Home?

📋 Are You Eligible?

• Age: You must be 55 or older at the time of the contribution.
• Ownership: You (or your spouse) must have owned the home for at least 10 years.
• CGT Exemption: The home must be partially or fully exempt from Capital Gains Tax under the "Main Residence" rules. (Pure investment properties do not qualify).
• Timing: You strictly must make the contribution within 90 days of receiving the sale proceeds (settlement date).

The "Super Cap"

The real power of this strategy is that it ignores the Total Super Balance (TSB) cap. Usually, if you have over $1.9 million+ in Super, you are banned from making non-concessional contributions. The Downsizer rule ignores this ban.

Scenario	Standard Rules	With Downsizer
Contribution Limit	~$120,000 per year (Non-concessional)	$300,000 (One-off)
Balance Cap Restriction	Blocked if Super balance > $1.9M+.	ALLOWED even if balance > $1.9M+.
Couple's Limit	$240,000 combined	$600,000 combined

Chief Editor’s Verdict

If you are over 55 and planning to sell your home, the Downsizer Contribution is a "use it or lose it" opportunity. It is the single best way to move a large chunk of wealth from a taxable environment (your bank account) into a tax-friendly environment (Super), regardless of how much you already have in there.

Critical Step: You MUST submit the 'Downsizer contribution into super' form (NAT 75073) to your fund. If you deposit the money without the form, the fund may reject it or tax it incorrectly.

[General Advice Warning & Disclaimer]
This article provides general information only and does not constitute personal financial advice. Superannuation rules, including the Total Super Balance (TSB) cap and Transfer Balance Cap, are complex and subject to change. The "Downsizer Contribution" has strict timing and paperwork requirements (ATO Form NAT 75073). Always consult with a qualified Financial Adviser or Tax Accountant before making large transactions.