--- title: "The downsizer contribution: how to put up to $300,000 from your home sale into super" description: Discover how Australians aged 55 and over can contribute up to $300,000 from home sales into super, boosting retirement savings while navigating tax implications. image: https://blog.canwi.com.au/hubfs/pexels-cottonbro-6942736.jpg --- [Skip to content](https://blog.canwi.com.au/the-downsizer-contribution-how-to-put-up-to-300000-from-your-home-sale-into-super#main-content) [Canwi](https://canwi.com.au) [Blog](https://blog.canwi.com.au) [About](https://canwi.com.au/about) [Pricing](https://canwi.com.au/pricing) [Explore Scenarios](https://canwi.com.au/scenarios) [Sign In](https://app.canwi.com.au/?action=signin) [Get Started](https://app.canwi.com.au/?action=signup) [Home](https://canwi.com.au) [Blog](https://blog.canwi.com.au) [About](https://canwi.com.au/about) [Pricing](https://canwi.com.au/pricing) [Explore Scenarios](https://canwi.com.au/scenarios) [Sign In](https://app.canwi.com.au/?action=signin) [Get Started](https://app.canwi.com.au/?action=signup) ![The downsizer contribution: how to put up to $300,000 from your home sale into super](https://blog.canwi.com.au/hubfs/pexels-cottonbro-6942736.jpg) # The downsizer contribution: how to put up to $300,000 from your home sale into super [Cameron](https://blog.canwi.com.au/author/cameron) Jun 9, 2026 10:23:27 PM If you're 55 or older and selling the family home, you may be able to contribute up to $300,000 of the proceeds directly into super - outside the normal contribution caps. Here's how it works.   Last updated: June 2026  ·  ATO-aligned  ·  General information only     5 min read   In this article 1. What the downsizer contribution is 2. Who is eligible 3. How much you can contribute 4. How to make the contribution 5. Tax treatment inside super 6. Impact on the Age Pension 7. Things to watch out for 8. Modelling it in Canwi   ---   ## What the downsizer contribution is The downsizer contribution is a special type of after-tax super contribution available to Australians aged 55 and over when they sell a property that has qualified - either fully or partially - for the main residence CGT exemption at some point during their ownership. It doesn't need to be your current home; a former main residence qualifies provided it met the exemption criteria at some stage. Unlike normal non-concessional contributions, the downsizer contribution sits **outside the usual contribution caps** - it doesn't count toward your annual NCC cap or your total super balance limit for contribution eligibility purposes. It's designed to encourage older Australians to free up larger homes and simultaneously boost their retirement savings. But it has strict rules around timing, property eligibility, and how the money is treated once it's in super. Key numbers at a glance | Maximum contribution per person | $300,000 | | --- | --- | | Maximum per couple (combined) | $600,000 | | Minimum age | 55 | | Minimum ownership period of home | 10 years | | Time limit to contribute after settlement | 90 days |   ---   ## Who is eligible To make a downsizer contribution you must meet all of the following: - You are **aged 55 or over** at the time of the contribution (lowered from 60 in January 2023, then to 55 in January 2023) - You or your spouse owned the property for at least **10 years** before the sale - The property is in Australia and is not a caravan, houseboat, or mobile home - The sale proceeds are at least partially **exempt from CGT** under the main residence exemption (full or partial - you don't need to be fully exempt) - You have never previously made a downsizer contribution (it's a once-per-lifetime measure) - The contribution is made **within 90 days of settlement** Note there is **no work test** and **no total super balance restriction** for the downsizer contribution - unlike most other super contributions. Even if your super balance exceeds $1.9 million, you can still make a downsizer contribution. You also don't need to actually buy a smaller home - the name is a misnomer. You can rent, move in with family, or buy something of equivalent value.   ---   ## How much you can contribute You can contribute up to **$300,000 per person**, capped at the total sale proceeds of the property. For a couple who both meet the eligibility criteria, that's up to $600,000 combined - even if only one person was on the title, as long as the other person was their spouse at the time of sale. The contribution doesn't need to equal the sale price - you can contribute any amount up to the $300,000 cap, provided it doesn't exceed the total proceeds received. You can also split the contribution across multiple super funds, provided the total per person stays within the cap. How the contribution can be structured Two examples showing how downsizer contributions can be split between funds and spouses Example 1 - couple, one fund each Home sale proceeds e.g. $1,400,000 Sam (age 62) contributes $300,000 Alex (age 64) contributes $300,000 Sam's super fund +$300,000 Alex's super fund +$300,000 $600,000 combined Outside both NCC caps Example 2 - one person, split across two funds Jordan (age 58) total contribution $300,000 Industry fund $150,000 SMSF $150,000   ---   ## How to make the contribution Before or at the time of making the contribution, you must give your super fund a completed **downsizer contribution into super form** (ATO form NAT 75073). Your fund needs this before or at the time you contribute - not after. If you submit the form late, the contribution may be treated as a normal non-concessional contribution and count against your NCC cap, which can create excess contribution issues. The 90-day window runs from the date of settlement, not the date contracts are exchanged. Given the paperwork involved, it's worth starting the process well before settlement so you're not scrambling in the final days.   ---   ## Tax treatment inside super Once the money is in super, it is treated as a **non-concessional (after-tax) contribution** - meaning it goes into the tax-free component of your super balance. There's no additional tax on the way in (you've already paid income tax on the sale proceeds). Investment earnings on the money in accumulation phase are taxed at up to 15%, and in retirement (pension) phase at 0%. Importantly, the downsizer contribution does count toward your **transfer balance cap** - the $1.9 million limit on how much you can move into the tax-free pension phase. If you're already close to your cap, a large downsizer contribution could limit how much of it earns tax-free returns in pension phase.   ---   ## Impact on the Age Pension This is the part many people overlook. Your family home is **exempt from the Age Pension assets test**. Super is not. When you sell your home and put the proceeds into super, you're potentially converting an exempt asset into an assessable one - which can reduce or eliminate your Age Pension entitlement. Worth modelling before you decide Whether a downsizer contribution makes financial sense depends heavily on your total asset position, Age Pension eligibility, and how long you expect to hold the money in super. Someone with modest assets who currently qualifies for the full Age Pension might be worse off overall after a large downsizer contribution. The super tax benefits are real, but so is the pension trade-off - the numbers need to be run for your specific situation.   ---   ## Things to watch out for **It's once per lifetime.** You can only use the downsizer contribution once. If you sell one home now and put in $150,000, you can't use the remaining $150,000 cap when you sell a future property. Use it all in one go or accept you're leaving some capacity on the table. **The 90-day clock is strict.** Missing the deadline means the contribution can't be treated as a downsizer contribution. Notify your fund early and don't assume you can sort the paperwork post-settlement. **Investment properties don't qualify.** The property must have been your main residence at some point during the ownership period and must qualify (at least partially) for the main residence CGT exemption. A pure investment property that has never been your home doesn't qualify. **Transfer balance cap interaction.** If you're already in or near retirement phase, a large downsizer contribution may push you toward or over your transfer balance cap, limiting future tax-free earnings in pension phase.   ---   ## Modelling it in Canwi The downsizer contribution involves a trade-off between super's tax advantages and the Age Pension assets test - and the right answer depends entirely on your numbers. In Canwi, you can model a property sale event, add the downsizer contribution, and see the downstream impact on your super balance, Age Pension eligibility, and net worth trajectory over time. Comparing the scenario with and without the contribution - and layering in the Age Pension impact - is exactly the kind of analysis that used to require a financial adviser. Now you can run it yourself. Model a downsizer contribution in Canwi See how selling your home and contributing to super affects your retirement balance, Age Pension, and long-term net worth - side by side, in one plan. [Open my plan →](https://canwi.com.au)   *This post is general information only and is not financial, superannuation, or tax advice. Eligibility rules and contribution caps may change. The interaction between super contributions and Age Pension entitlements is complex and depends on your individual circumstances. * ![Cameron](https://app.hubspot.com/settings/avatar/f6b22a6930cbd1a398fc84b5f6884186) Written by ## Cameron Cameron Drury is a cofounder of Canwi. Early in his career, while working on financial advice transformation projects as a tech consultant, he followed well-meaning advice that made sense at the time but didn’t evolve as his life changed. A few years later, comparing his financial position with a colleague who had planned early became a clear wake-up call. After also working in product at a fintech—where he learned just how complex and inaccessible financial planning can be - Cameron set out to build something better. He believes that with the right tools and clarity, anyone can take control of their finances and end up dramatically better off over time. Outside of work, you’ll usually find him on a tennis court, trying new beers, or keeping up with the latest in Formula 1. [mailto:cameron@canwi.com.au](mailto:cameron@canwi.com.au) ## Related Posts [![](https://blog.canwi.com.au/hs-fs/hubfs/pexels-shox-34360413.jpg?width=352&name=pexels-shox-34360413.jpg)](https://blog.canwi.com.au/property-deductions) ### [The hidden tax deduction some property investors miss - and how to claim it](https://blog.canwi.com.au/property-deductions) If you own an investment property and you're not claiming depreciation, you're almost certainly leaving money on the... 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