The downsizer super contribution rule lets you put up to $300,000 per person — $600,000 per couple — into superannuation OUTSIDE the normal contribution caps, using the proceeds of selling your main home. It's one of the most powerful super-boosting mechanisms left in the Australian system for people approaching or in retirement. But there are five strict eligibility tests, a tight 90-day window, and one-shot lifetime usage. Verified against the ATO — Downsizer super contributions page as at 13 June 2026.
The $300,000 cap is legislated, not indexed. It's been the same since the rule started in 2018. Treasury has floated future indexation but nothing has been legislated as of June 2026.
The five eligibility tests
You qualify to make a downsizer contribution if all of these apply:
- You're 55 or older at the time of contribution. The threshold has dropped: 65 pre-2018, 60 from 1 July 2022, and 55 from 1 January 2023. Many people still think 65.
- The home was owned by you or your spouse for at least 10 years before sale. Ownership can be shared between members of a couple — only ONE of you needs to satisfy this individually if you're contributing as a couple, but combined ownership needs to span 10+ years.
- The home qualifies (or partly qualifies) for the CGT main residence exemption. A pure investment property doesn't qualify; a home you partly used for income could give you a partial downsizer cap (proportional to the main-residence portion).
- You make the contribution within 90 days of receiving the sale proceeds (i.e. 90 days from settlement). Late contributions don't qualify and get caught by the standard cap rules.
- You've notified your super fund using the ATO Downsizer Contribution Form BEFORE or AT the time of the contribution. The fund needs the form to treat the money correctly.
Why it matters — the strategic value
For most retirees, the downsizer rule does three things at once:
- Boosts retirement super by up to $600,000 (couple) outside the caps. That same amount, contributed under non-concessional rules, would normally take 3+ years of using the bring-forward provision AND only if your total super balance was under $1.66 million.
- Doesn't affect your concessional or non-concessional cap for the year. You can still make full normal contributions in the same financial year.
- Lets you front-load a downsized lifestyle. Move from a $1.5M family home to an $800k apartment, put $600,000 of the difference into super, and have $100,000 in cash plus the $600,000 super boost generating super-tax-rate (0% in pension phase) returns for the rest of your life.
What "your main home" actually means
The home must qualify for the CGT main residence exemption. That means:
- It was your principal place of residence at some point you owned it.
- You can prove ownership for at least 10 years (title records, council rates).
- It's a real property (not a houseboat, caravan, or mobile home — those don't get the main residence CGT exemption).
Partial cases. If you used part of the home for income (e.g. you ran a small business from a converted garage, or rented out a granny flat), the main residence exemption is reduced and your downsizer cap is reduced proportionally. The ATO has worked examples on this page.
Spouses and joint ownership. Only one spouse needs to satisfy the 10-year ownership test for the couple to both contribute, but BOTH spouses need to be 55+. The home need not be jointly owned — one person could own it and both members of the couple can still contribute the cap (provided that one member is the spouse of the owner).
Worked example — Margaret and David
Margaret (62) and David (66) sell their Brisbane family home for $1.2M after 22 years of ownership. After agent fees and settlement costs they net $1.15M.
They buy a 2-bedroom apartment in the same suburb for $650,000, leaving $500,000 in net cash from the downsize.
Downsizer contribution math:
- Margaret contributes $250,000 to her super under the downsizer rule (sub-cap by choice; she wanted some buffer cash).
- David contributes $250,000 to his super under the downsizer rule.
- Combined: $500,000 into super outside the normal caps.
- They both also make normal $32,500 concessional contributions each that financial year (FY 2026-27 cap).
At end of year, their super balances jump by $560,000 combined, none of which used a concessional or non-concessional cap. Their TSBs at next 30 June will reflect the new balances, which will affect non-concessional cap eligibility in FUTURE years — but not the year the downsizer happened.
Age Pension impact: Margaret is 62 — under Age Pension age, so her super isn't yet deemed under the Age Pension income test. David is 66 — also under Age Pension age (which is 67). When David turns 67 in 4 years, his super will be deemed for the Age Pension income test, AND counted under the assets test. If they remain homeowners with relatively modest other assets, they may still qualify for a partial pension — but the downsizer boost has pushed them substantially higher on the means-test scale. Worth modelling before they decide whether to contribute the maximum or hold some back outside super.
The Age Pension trade-off
The downsizer rule is a tax-effective way to BOOST super — but super that's been brought into the Age Pension age range is deemed AND assets-tested. Your $300,000 downsizer contribution, once you're past 67, becomes:
- Deemed income at 1.25%/yr to the deeming threshold, 3.25%/yr above.
- Assessable assets counted toward the assets test (single homeowner threshold $333,000 full pension; couple combined $499,000).
A couple already close to the assets-test cut-off can lose substantially more in lost pension than the downsizer contribution earns inside super. Always model your Age Pension position BOTH ways (downsizer in / downsizer out) before acting.
The Services Australia Financial Information Service is free and exists specifically for these decisions. Use it.
Timing rules — the 90-day window
The 90 days runs from receipt of the sale proceeds — typically the day funds clear in your account after settlement, not the day contracts exchanged. Bridging finance, vendor finance, or instalment arrangements can complicate this — the ATO has specific guidance on what counts as "received".
If you miss the 90 days the contribution doesn't auto-fail — it just becomes a normal non-concessional contribution, subject to the $130,000 (or bring-forward $390,000) FY 2026-27 cap. Excess contributions tax can be brutal. Don't miss the window.
Where to claim + next steps
- Step 1: confirm eligibility by reading the ATO Downsizer Contribution page carefully.
- Step 2: complete the Downsizer Contribution Form and give it to your super fund BEFORE or AT the contribution.
- Step 3: model the Age Pension impact with the Services Australia Financial Information Service — free.
- Step 4: get specialist tax advice if you're using the downsizer alongside non-concessional bring-forward, or if the home was partly used for income at any point.
See also: our Age Pension guide, Commonwealth Seniors Health Card guide, and Work Bonus guide.