Downsizer Contributions Explained: Putting Home-Sale Money Into Super
Last reviewed 26 May 2026 · FiftyPlus Finance
When Australians sell a long-held home later in life, they sometimes want to put part of the proceeds into superannuation. The downsizer contribution is a specific rule that may allow this, on top of normal contribution caps.
This is general information only and not personal advice. Eligibility and amounts change — always check current rules on the ATO and consider choosing a licensed financial adviser before acting.
What a downsizer contribution is
A downsizer contribution allows eligible individuals to contribute proceeds from the sale of their home into super, separate from the standard concessional and non-concessional contribution caps. It was introduced to give older Australians more flexibility around using home equity in retirement.
Despite the name, you do not actually have to move to a smaller home. The 'downsizing' refers to using housing proceeds, not the size of the new property.
Basic eligibility (always confirm with the ATO)
As a general indication only — current rules are published by the ATO:
Age
You generally must be at least the eligibility age set by the government at the time of contribution. This age has changed over time, so check the current threshold.
Ownership period
The home must usually have been owned by you, your spouse or your former spouse for at least 10 years before sale.
Australian home
The property must be in Australia and cannot be a caravan, houseboat or mobile home.
Main residence exemption
The sale must qualify, at least in part, for the main residence capital gains tax exemption.
Contribution amount
There is a maximum amount per person from a single sale (couples may each contribute up to that maximum from the same sale).
Timing
The contribution must generally be made within a set number of days of settlement, and the downsizer form must be lodged with your fund at or before contribution.
Things to think about before you contribute
Age Pension impact. The family home is generally exempt from the Age Pension assets test, but money in super is counted once you reach Age Pension age. Moving home-sale proceeds into super can therefore reduce Age Pension entitlements for some people. See the Age Pension and your investments.
Investment risk. Once inside super, the money is invested and subject to market movements. It is not 'guaranteed' to grow.
Access. Like other super, downsizer contributions are subject to the standard preservation rules — but for those who are already past preservation age, the money is typically accessible once contributed.
Estate planning. The tax treatment of super paid to beneficiaries depends on who they are. Discuss with a licensed adviser and consider professional estate planning.
One-off opportunity. The downsizer contribution can usually only be made from the sale of one home, so it's worth getting the paperwork right.
How it fits into a broader plan
A downsizer contribution rarely makes sense in isolation. It interacts with your retirement income options, potential Age Pension entitlements, and the tax treatment of your overall portfolio (see tax in retirement). Our questions to ask before investing checklist is a useful starting point for a conversation with a licensed adviser.
For a free written overview of how these pieces commonly fit together, you can request your free information pack.
Official sources
The authoritative source for downsizer contribution rules is the ATO. Moneysmart also publishes a plain-English explanation. Rules and amounts change, so confirm before acting.
Frequently asked questions
Do I have to buy a smaller home?+
No. The rule is about contributing proceeds from the sale of an eligible home into super, not about the size of any new home you buy.
Can my partner also contribute?+
Eligible couples can generally each make a downsizer contribution from the same sale, up to the per-person cap. Check the current cap with the ATO.
Does it count toward my contribution caps?+
No. Downsizer contributions are separate from concessional and non-concessional caps, but they do count toward your total super balance for other purposes.
Will it affect my Age Pension?+
It may. The home is generally exempt from the assets test, while money in super is counted from Age Pension age. Speak with Services Australia or a licensed adviser.
Can I make a downsizer contribution more than once?+
Generally only from the sale of one eligible home. Confirm the current rule with the ATO.
How long do I have to contribute after sale?+
There is a set window after settlement. Check the current period on the ATO website before you act.
Related guides
Important — please read
The information provided on this website is general information only. It does not take into account your personal objectives, financial situation or needs. Before acting on any information, you should consider its appropriateness having regard to your own circumstances and obtain advice from a qualified, licensed financial adviser.
All investments carry risk, including the possible loss of some or all of the capital invested. Past performance is not a reliable indicator of future performance. No outcome, return, income or capital guarantee is made or implied.