Downsizing your home

Selling your family home and contributing all (or some) of the sale proceeds to your super account, can be a great way to give your super a boost before you retire.


Downsizing your life can help upsize your super – so you may have more money when you retire. There are a few benefits to this type of contribution:

Contribution caps don’t apply

It doesn’t matter how much you have in your super, contribution caps don’t apply for downsizer contributions.

Tax benefits

No tax when you contribute it, and if you invest it into a pension there’s no tax on investment earnings and no tax when you withdraw it once you turn age 60

No work test requirement

You can make this contribution anytime from age 55 regardless of whether you are working or not.

How it works

  • You must be over age 55
  • You must have owned your home for 10 plus years
  • You can contribute up to $300,000 (or $600,000 as a couple) of the sale price
  • It could impact your eligibility for the government Age Pension.
  • Contribution must hit your super account withing 90 days of the settlement.

How much difference can it make?

Janelle is a single mum aged 55 and wants to downsize. If she decides not to make a downsizer contribution, her income in retirement will be $38,000 per annum.

Let’s see what her retirement income will be if she makes a downsizer contribution:

Contribution Income in retirement Extra income
$150,000 $46,000 per annum $8,000 per annum
$300,000 $52,000 per annum $14,000 per annum

Assumptions: Janelle has starting salary of $87,000 and starting balance of $92,000. She makes downsizer contribution at 55 and retires at age 67. Her super is invested in the Balanced option 5.5% (after fees but before taxes). Retire at age 67 starting an income stream invested in the Balanced option 5.5% (after fees but before taxes). Her aim is for her super to last up until age 92 (Life Expectancy + 5 years). Income is in today’s dollars. CPI – 2.5%. Salary and contributions indexation – 2.5%. AWOTE – 4%. Age pension rates as of August 2023

#Up to $300,000 for singles. 


How to make a downsizer contribution

You must make a choice to treat a contribution as a downsizer contribution before or at the time the contribution is made into your CareSuper account. To make a downsizer contribution simply complete the downsizer contribution into super form from the ATO page and return it with your cheque (do not use BPAY). If you make multiple contributions, you must provide a form for each contribution.

All downsizer contributions must be made within 90 days of receiving the proceeds of sale. You may be eligible to apply to the ATO for an extension of time in some circumstances. To access the form to make a contribution and the full eligibility criteria, visit the ATO website.

Get help

You can speak with a Financial Planner from CareSuper about how to make a downsizer contribution into your account. You can request a call here. Creating fantastic retirements is our passion at CareSuper, so if you need some help planning your best retirement, please give us a call.

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