If you are 55 or older, you may be able to contribute up to $300,000 from the proceeds of selling, or partly selling, your home into a complying super fund. The Australian Taxation Office (ATO) calls this a downsizer contribution. It does not count toward your concessional or non-concessional contribution caps.

You do not have to buy a smaller home, and there is no maximum age. A spouse who did not own the home can still be eligible if the other conditions are met. The total downsizer contributions from a sale cannot exceed the sale proceeds, and each eligible person is still limited to $300,000.

This explainer follows the ATO downsizer page, last updated 20 January 2026, and ASIC's MoneySmart downsizer guidance, last updated 29 September 2026. It sits with the Never Lose Interest guides to carry-forward concessional contributions, the main residence CGT exemption and the Age Pension and super.

This is general information only. It is not personal advice, and it is not a recommendation to sell a home or to contribute the proceeds to super.

Who is eligible?

The ATO says you must meet all of the following:

  • you are 55 or older at the time you make the contribution (the eligible age has been 55 from 1 January 2023, and there is no maximum age)
  • the home was owned by you and/or your spouse for 10 or more years before the sale. If only one spouse owned the home, the other is also eligible if the other conditions are met
  • the home is a residential building in Australia, and is not a caravan, houseboat or mobile home
  • the sale qualifies for the main residence capital gains tax (CGT) exemption, either fully or partially, or, if the home was purchased before 20 September 1985, it would have qualified if it were a CGT asset
  • you have not previously made a downsizer contribution from the sale of another home, or from the part sale of your current home
  • you give the Downsizer contribution into super form (NAT 75073) to your super fund before, or at the time, you make the contribution
  • you contribute within 90 days of receiving the home sale proceeds, usually at settlement, unless the ATO grants you an extension

The contract of sale must have been entered into on or after 1 July 2018. That start date still matters for older sales.

You can make more than one payment from the same sale, as long as you stay within the $300,000 limit and the 90-day window, or any longer period the ATO allows. MoneySmart also notes that downsizer contributions are not taxed when they go into super, which is consistent with them sitting outside the usual contribution caps.

How much can you contribute?

The ATO limit is up to $300,000 per eligible person. For a couple, each eligible spouse can contribute up to $300,000. The total of all downsizer contributions cannot exceed the total proceeds from the home sale.

ATO guidance for funds states that the maximum for an individual, from the sale of one home, is the lesser of $300,000 or the proceeds of the sale less any other downsizer contributions already made by the individual or a spouse. Guidance Note GN 2018/2 also says the limit is based on gross capital proceeds. A mortgage that is paid out, and selling costs, do not reduce that maximum. If a couple sell under one contract and both are eligible, they can choose how to split the proceeds, provided neither contributes more than $300,000.

A simple illustration, using those official limits: a home sells for $900,000. Each eligible spouse could contribute up to $300,000, or $600,000 together, which is still less than the proceeds. If the same home sold for $450,000, the combined downsizer contributions could not exceed $450,000, even though two lots of $300,000 would be $600,000.

The contribution does not have to be the entire sale proceeds. You can contribute a smaller amount, or none.

What happens to your caps, your TSB and other tests?

A downsizer contribution does not count toward the concessional or non-concessional caps. That is the main attraction compared with a large after-tax contribution, which can be blocked if your TSB is already high.

It is included in your total super balance when that balance is next calculated at the end of the financial year. The ATO says this may affect your future eligibility under some superannuation rules and entitlements. In practice, that can include:

Selling a home can also change the Age Pension assets test, because the former home was usually exempt and the cash or the new home may not be treated in the same way. That is a Services Australia question, not a reason to assume a downsizer contribution is Age Pension-neutral.

The sale itself may have CGT consequences if the main residence exemption is only partial. The downsizer rule requires that the sale qualifies for a full or partial exemption, or would have if the home had been a post-1985 CGT asset. It does not, by itself, wipe out a taxable capital gain. See the main residence CGT exemption.

Timing and the form

The 90-day clock usually starts when you receive the sale proceeds, which is typically at settlement. If you cannot contribute in time, you can apply to the ATO for an extension. Do not assume an extension will be granted.

The approved form (NAT 75073) must reach the fund before, or at the time of, the contribution. If the fund is not told in the approved way, the payment may be treated as an ordinary personal contribution and counted toward your non-concessional cap, which can cause an excess if you do not have room.

Confirm that your fund will accept downsizer contributions, and ask how it wants the form and the payment labelled, before settlement day.

Frequently asked questions

Do I have to buy a cheaper home?

No. The ATO and MoneySmart rules are about contributing proceeds from the sale of an eligible home. They do not require you to buy another dwelling, or a smaller one.

Can both members of a couple contribute if only one was on the title?

Yes, if the other eligibility conditions are met. The ATO states that if only one spouse owned the home, the other is also eligible provided those conditions are met.

Can I use this more than once?

No. The ATO says you must not have previously made a downsizer contribution from the sale of another home, or from a part sale of your current home. Multiple payments from the same eligible sale are allowed, up to the limit.

General information warning

This article is general information only. It is not personal financial product advice or tax advice, and it is not a recommendation to sell a home or to make a downsizer contribution. It does not take into account your objectives, financial situation or needs. Eligibility, timing and the effect on your total super balance, Age Pension and later contribution room all depend on your facts. Consider speaking with a registered tax agent or a licensed adviser, and confirm the current ATO rules, before you settle or contribute.

Sources

Last reviewed: November 2026.