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Downsizer contributions

If you are over 65 and choose to sell your home, you may make a contribution of up to $300,000 to your superannuation fund using the proceeds of the sale. This contribution can be made whether you sell and buy a less expensive home OR even if you choose not to buy another home. “

A contribution can also be made by a spouse who has no ownership in a home that was sold by their partner, provided they meet all other eligibility requirements.

Eligibility requirements include:

  • You must be aged 65 or over
  • This must be your first and only downsizer contribution
  • Your home must be in Australia and not a caravan, houseboat or other mobile home
  • You or your spouse must have owned the home for 10 years or more prior to the sale date
  • You must make the downsizer contribution within 90 days of settlement of the sale (unless you are granted an extension of time), and the sale contract date must be after July 1 2018
  • The proceeds of the sale must be either exempt or partially exempt from capital gains tax under the main residence exemption, or, if you acquired the home before 20 September 1985, you must demonstrate that you would have been entitled to such exemption if the home was not a pre-CGT asset
  • You must provide your super fund with the Downsizer contribution into super form either before or at the time of making your contribution
  • While multiple contributions may be made from a single sale, the total of contributions must not exceed $300,000, or the total proceeds of the sale less any contributions made by your spouse.