Downsizer contributions

Your client can make a downsizer contribution into their account if they’ve met certain eligibility criteria including:

• being 55 years or older at the time of the contribution
• the dwelling was owned by your client or their spouse for 10 years or more before the sale
• the home is in Australia and is not a caravan, houseboat or other mobile home
• the proceeds from the sale are exempt or partially exempt from Capital Gains Tax (CGT) under the main residence exemption
• the downsizer contribution is made within 90 days (or longer period as allowed by the ATO) of the sale (usually at the date of settlement)
• no previous downsizer contributions have been made to super from the sale of another home or from the earlier partial sale of your client’s home
• the Downsizer contribution into super form (NAT 75073) is provided either before or at the time of making the downsizer contribution.

A downsizer contribution has its own cap and is equal to the lesser of $300,000 and the total capital proceeds from the sale.

A downsizer contribution has its own cap. Your clients can contribute up to $300,000 each, as long as the amount does not exceed the capital proceeds from the sale.