DOWNSIZING & SUPER
Downsizer super contributions: eligibility and pension effects
A downsizer super contribution may let eligible people add home-sale proceeds to super under a separate set of rules. Check age, ownership, timing and other ATO conditions, as well as the possible Age Pension effects, before deciding how to use the proceeds.
OFFICIAL RULES CHECKED 22 AUGUST 2026
Who qualifies for a downsizer contribution.
A downsizer contribution lets you (and your spouse, if you have one) each contribute up to $300,000 from the proceeds of selling your home into superannuation — without it counting toward your concessional or non-concessional contributions caps, and without needing to meet a work test.
| Requirement | Rule |
|---|---|
| Minimum age | 55 or older at the time of the contribution (no upper age limit) |
| Dwelling eligibility | The dwelling must be in Australia and cannot be a caravan, houseboat or other mobile home. Other eligibility conditions also apply. |
| Ownership period | You and/or your spouse owned the home for 10+ years before the sale |
| Main residence exemption | The sale must qualify (in full or part) for the CGT main residence exemption |
| Contribution limit | Up to $300,000 per eligible person. Each spouse must qualify separately. Combined downsizer contributions cannot exceed the eligible sale proceeds, so the available couple total may be less than $600,000. |
| Timing | Must be made within 90 days of settlement, using the ATO downsizer contribution form |
| Total Super Balance | No TSB limit applies — you can contribute even if your super balance already exceeds the general transfer balance cap |
The Age Pension trade-off people miss.
Your principal home is generally exempt from the Age Pension assets test, but selling it can change your assessment. Qualifying proceeds intended for a replacement principal home may remain exempt for up to 24 months, with a possible extension; those proceeds receive special deeming treatment. Other proceeds can become assessable. Super treatment also depends on your age and whether it pays an income stream. A downsizer contribution does not create a special pension exemption. Check the proposed use of the proceeds with Services Australia before acting.
Worked example
Grace, 68, sells the family home for $850,000 after owning it for 22 years. This illustration assumes she meets all downsizer-contribution eligibility rules and has not set aside any proceeds for a replacement principal home. She contributes $300,000 into super; starting a new retirement-phase income stream is a separate step subject to her personal transfer balance cap and fund requirements. The remaining $550,000 sits in her bank account temporarily before she decides how to use it. The assessment of both amounts depends on the applicable Age Pension and super rules.
Frequently asked questions
Does it count toward my contribution caps?
No — downsizer contributions sit outside both the concessional and non-concessional caps entirely.
Do I have to buy a smaller home?
No. Despite the name, there’s no requirement to downsize, buy another property, or even buy again at all.
Can I do this more than once?
Generally only once, from the sale of one home — it isn’t a recurring contribution type.
Does my age pension eligibility change immediately?
A home sale can change how your income and assets are assessed. Some replacement-home proceeds may qualify for temporary exemption and special deeming. Tell Services Australia about the sale within 14 days and ask how the proceeds will be assessed; moving money into super does not automatically preserve pension entitlement.
Apply this to your own plan.
Pension Pilot provides an educational estimate only. It does not establish downsizer-contribution eligibility or the full Age Pension effects of a property sale. Check the proposed transaction with the ATO and Services Australia before acting.