The Downsizer Super Contribution: Put Up to $300,000 Into Your Super
The downsizer contribution scheme lets you contribute up to $300,000 per person from the sale of your home directly into super. It does not count toward your regular contribution caps, making it one of the largest single contributions most Australians can ever make. Here is how it works, who qualifies, and what to watch out for.
Eligibility Rules
The ATO sets specific criteria for the downsizer contribution. All of the following must be met:
- •Aged 55 or older at the time of contribution. There is no upper age limit.
- •10-year ownership test. The home was owned by you or your spouse for at least 10 years before the sale. Partial ownership counts.
- •Main residence at some point. The home must have been your main residence at some point during ownership. It does not need to be your main residence at the time of sale.
- •One-time use. You can only make a downsizer contribution from the sale of one home, once per lifetime. If you sell again later, you cannot use the scheme again.
- •Australian property only. The home must be in Australia and must be a dwelling. Caravans, houseboats, and mobile homes do not qualify.
There is no work test, no total super balance test, and no upper age limit for the downsizer contribution. Even if your total super balance exceeds $1.9 million, you can still make this contribution.
What Counts and What Does Not
The downsizer contribution sits outside the normal contribution cap system. This makes it unusually generous, but there are still rules that apply.
Exempt from:
- The $30,000 concessional contribution cap
- The $120,000 non-concessional contribution cap
- The 15% contributions tax (enters as a non-concessional contribution)
Still counts toward:
- Your total super balance for the Age Pension assets test
- The $1.9M total super balance test that restricts non-concessional contributions
- The $1.9M transfer balance cap when you start a retirement income stream
Couples: $600,000 Combined
Each person in a couple can contribute up to $300,000 from the sale of the same home. That is $600,000 combined going into super from a single property sale.
- •Only one spouse needs to be on the property title. Both can still contribute.
- •Both spouses must be aged 55 or older at the time they make their contribution.
- •The contribution does not need to be split evenly. One person could contribute $300,000 and the other $100,000, for example.
Example
A couple sells their home for $1.2 million. They each contribute $300,000 into their own super accounts. Combined super increases by $600,000. The remaining $600,000 goes toward purchasing their next property or other expenses.
How It Interacts with the Age Pension
This is where the downsizer contribution gets complicated. Your home is exempt from the Centrelink assets test. Your super is not.
Contributing $300,000 from the sale of your home into super moves $300,000 from an exempt asset (the home) into an assessable asset (super). Centrelink now counts that money when calculating your pension entitlement.
The numbers
The assets test taper rate is $3 per fortnight for every $1,000 of assessable assets above the lower threshold. An extra $300,000 in super reduces your pension by up to:
$900 per fortnight
That is $23,400 per year in reduced pension.
For many people, this is the difference between receiving a part pension and receiving no pension at all. The trade-off: you have more super to draw from, but less (or no) government pension support.
Whether the trade-off works in your favour depends on your total assets, your spending rate, and how long you expect to live. Someone with $200,000 in super who adds $300,000 may lose most of their pension. Someone with $900,000 already above the cutoff loses nothing because they had no pension to lose.
See the full pension impact analysis for downsizers →
The 90-Day Deadline
You must make the contribution within 90 days of receiving settlement proceeds. The clock starts when your solicitor or conveyancer releases the funds to you, not when contracts are exchanged.
- •You need to submit a “Downsizer contribution into superannuation” form (NAT 75073) to your super fund before or at the time of making the contribution.
- •The form must be received by your fund before or when the contribution is made. Late forms mean the fund cannot accept the contribution as a downsizer contribution.
- •Extensions are only available in limited circumstances at the ATO's discretion. Do not rely on receiving one. Missing the 90-day window generally means you cannot make the downsizer contribution, and the money would need to go through normal contribution channels, subject to standard caps.
If you are selling through a slow settlement process or dealing with multiple properties in a chain, keep the 90-day clock front of mind. Have the form ready before settlement day.
Common Mistakes
The downsizer contribution rules are straightforward, but the most common errors are timing and pension-related:
- •Missing the 90-day window. Extensions are only available at the ATO's discretion in limited circumstances. Once the deadline passes, the contribution generally cannot be made under the downsizer rules.
- •Failing the 10-year ownership test. The 10-year period is based on ownership, not occupation. But if you purchased less than 10 years ago, you do not qualify regardless of how long you lived there.
- •Not modelling the pension impact first. Contributing the maximum $300,000 is not always the best outcome. For people near the pension cutoff, a smaller contribution (or none at all) may result in higher total retirement income when pension payments are included.
- •Both spouses contributing the maximum without checking. A couple contributing $600,000 combined may push both partners over the pension cutoff. In some cases, contributing less per person preserves more pension income over the long term.
- •Forgetting the downsizer form. The NAT 75073 form must be submitted to your super fund before or at the time of contribution. Without it, the fund treats the money as a standard contribution subject to normal caps.
See How It Affects Your Retirement
The downsizer contribution changes your super balance, your pension eligibility, and your retirement runway all at once. The right answer depends on your full financial picture.
Free. No sign-up required.
Related
Source: ATO — Downsizer super contributions
Modelled outcomes only. Not financial advice. This page provides general information about the downsizer contribution scheme based on rules current as at June 2026. Eligibility criteria, contribution limits, and pension thresholds may change. Your personal circumstances will affect whether the downsizer contribution is appropriate for you. Consult a licensed financial adviser before making decisions about your super or retirement.