The Complete Downsizing Checklist for Australian Retirees
Downsizing involves more steps than most people expect. Missing a single deadline (like the 90-day window for the downsizer super contribution) can cost tens of thousands. This checklist walks through everything, from the first financial assessment to settling into your new home.
Phase 1 — Before You Decide
Before you list anything or speak to an agent, run the numbers. Downsizing changes your pension entitlements, your super balance, and your ongoing costs. Get the full picture first.
Run your numbers through a downsizing calculator
Use the downsizing calculator to model the financial outcome of selling your home, including net equity, super contributions, and how long your money lasts.
Check your current Age Pension entitlement
If you are 67 or older, check your current pension payment. If you are under 67, check your projected eligibility based on your assets at pension age.
Calculate the pension impact of selling
Selling your home and putting the proceeds into super changes your assessable assets. Use the pension impact calculator to see how your fortnightly payment would change.
Check downsizer super contribution eligibility
You must be 55 or older and have owned your home for at least 10 years. Each person can contribute up to $300,000 ($600,000 for a couple). See the super contribution guide for full eligibility rules.
Research stamp duty in your state
Stamp duty varies widely by state and can add $10,000 to $40,000 or more to your purchase. Some states offer senior concessions. Check the costs breakdown for state-by-state rates.
Discuss with your partner and family
Downsizing affects both partners and can change family dynamics. If you are part of a couple, both people need to agree on the plan, the budget, and the location.
Consider lifestyle factors
Proximity to medical care, public transport, and social connections matters more with age. A cheaper home two hours from your GP may not be a good trade.
Phase 2 — Financial Planning
Once you have decided to proceed, build the full financial picture. This means getting real numbers for both the sell side and the buy side, not rough guesses.
Get a market appraisal for your current home
Request 2-3 agent quotes. Appraisals are free and non-binding. Compare the range and ask each agent to justify their figure with recent comparable sales.
Estimate total selling costs
Agent commission (2-3% of sale price), marketing ($5,000-$15,000), conveyancing ($1,000-$2,000), styling, and minor repairs. These come out of your sale proceeds.
Estimate buying costs
Stamp duty on the new property (varies by state and price), conveyancing ($1,000-$2,000), building and pest inspection ($500-$700), and moving costs ($2,000-$5,000).
Calculate your net equity after all costs
Sale price minus mortgage (if any), minus selling costs, minus buying costs, minus stamp duty. The downsizing calculator does this for you.
Decide how much to contribute to super
You can contribute up to $300,000 each from the sale proceeds. The more you contribute, the longer your money lasts in retirement, but the more it affects your pension entitlement.
Model the pension impact of different contribution amounts
Try several amounts ($100K, $200K, $300K) and see how each affects your fortnightly pension. Sometimes contributing less and keeping cash outside super gives a better pension outcome.
Check whether contributing affects your non-concessional cap
If your total super balance (TSB) is over $1.9 million, you cannot make non-concessional contributions. The downsizer contribution is separate and does not count toward the non-concessional cap, but it does increase your total super balance, which counts toward the transfer balance cap when you start a retirement income stream.
Phase 3 — Selling Your Home
The selling process typically takes 4-8 weeks from listing to settlement. Plan for this timeline and line up your next move before you commit.
Select a real estate agent
Compare commission rates and track record. Ask for a list of recent sales in your area and how long each property took to sell. Negotiate the commission rate.
Agree on marketing budget and strategy
Agents will propose a marketing package ($5,000-$15,000). This covers online listings, photography, signage, and sometimes print advertising. Get a written breakdown.
Engage a conveyancer or solicitor
Budget $1,000-$2,000. They handle the legal transfer and contract review. Engage them before you sign the agency agreement so they can review it.
Prepare the property
Declutter, complete minor repairs, and consider styling. First impressions drive sale prices. Focus on kitchens, bathrooms, and street appeal.
Set your reserve price based on appraisals
Your reserve is the minimum you will accept. Base it on the appraisals, not on what you need. If the numbers do not work at a realistic sale price, reconsider the plan.
Understand capital gains tax rules
Your primary residence is exempt from capital gains tax. However, if the property was ever rented out or used for business, a partial exemption may apply. Talk to your accountant if this applies.
Phase 4 — Buying Your Next Home
Buying after selling is less stressful than the reverse, but you still need to get the timing right. A gap between settlements means temporary accommodation. An overlap means paying two sets of costs.
Research stamp duty concessions in your state
Victoria, South Australia, and the ACT offer concessions for seniors or pensioners. NSW, QLD, WA, TAS, and NT generally do not. Check your state revenue office for current rates.
Engage a buyer's agent if needed
A buyer's agent charges 1-3% of the purchase price but can save time and reduce the risk of overpaying, especially if you are buying in an unfamiliar area.
Arrange building and pest inspection
Budget $500-$700. Never skip this step, especially for older homes. Structural problems, termite damage, or asbestos can cost tens of thousands to fix.
Check body corporate/strata records if buying an apartment
Request the strata report. Look at the sinking fund balance, any pending special levies, building maintenance history, and whether there are disputes or compliance issues.
Budget for ongoing cost changes
Strata fees, council rates, and insurance will differ from your current home. An apartment with $6,000 per year in strata fees adds $500 per month to your ongoing costs.
Confirm settlement dates align
Ideally, your sale settles a few days before your purchase. This avoids paying two mortgages or being without a home. Your conveyancer can negotiate settlement dates.
Phase 5 — After Settlement
Settlement day is not the finish line. Several time-sensitive steps follow, and missing them can result in penalties or lost entitlements.
Make your downsizer super contribution within 90 days
The 90-day clock starts from the date you receive settlement proceeds, not from the contract date. If you miss this deadline, the contribution cannot be made under the downsizer rules.
Submit the ATO downsizer contribution form to your fund
You must lodge the 'Downsizer contribution into superannuation' form with your super fund before or at the time of making the contribution. Your fund cannot accept the contribution without this form.
Notify Centrelink within 14 days of settlement
Report your change of address and updated assets. This includes the sale proceeds, any super contributions, and the value of your new home. Failure to report within 14 days can result in overpayment debts that Centrelink will recover.
Update your address with key institutions
Banks, super fund, insurance providers, Medicare, electoral roll, and any subscription services. Set aside an afternoon to work through the full list.
Review your estate planning
If your property has changed, your will may need updating. Check that your super death benefit nominations are current and that any property-specific bequests are still valid.
Reassess your retirement budget
Your ongoing costs have changed. New council rates, strata fees (if applicable), insurance, and utilities may be higher or lower. Update your spending forecast with the actual numbers.
Model Your Numbers First
Every downsizing decision depends on the numbers: your home value, your super balance, your pension entitlement, and the costs involved. Run your scenario through the calculator before you commit to anything.
Try the Downsizing Calculator