Key Highlights

  • Australians aged 55 and over who sell a long-held family home can put up to $300,000 each of the proceeds into super under the downsizer rules, without that money counting towards the usual contribution caps.
  • Each eligible spouse can contribute that amount, so a couple can potentially add up to $600,000 between them.
  • To put the numbers in context, a couple contributing $600,000 under the downsizer rules would be adding more than four times what one person could put in under the annual non-concessional cap.
  • You must be 55 or older at the time the contribution is made.

Australians aged 55 and over who sell a long-held family home can put up to $300,000 each of the proceeds into super under the downsizer rules, without that money counting towards the usual contribution caps. With the non-concessional cap at $130,000 for 2026–27 and the cash rate at 4.60% after the Reserve Bank's 29 September rise, the enacted concession is worth understanding for older homeowners weighing a move.

How the Downsizer Contribution Works

The downsizer contribution is an enacted concession administered by the ATO. It lets an eligible person contribute part of the sale proceeds of their home to super, up to $300,000 per person.

Each eligible spouse can contribute that amount, so a couple can potentially add up to $600,000 between them. Total downsizer contributions, however, cannot exceed the sale proceeds.

Crucially, the contribution does not count towards either the concessional or the non-concessional contribution cap. the non-concessional cap is $130,000 for 2026–27, so a downsizer contribution sits on top of that limit rather than using it up.

To put the numbers in context, a couple contributing $600,000 under the downsizer rules would be adding more than four times what one person could put in under the annual non-concessional cap.

The Age, Ownership and Property Tests

You must be 55 or older at the time the contribution is made. The ATO says no extension of time is available for the age test.

You, your spouse, or both of you must have owned the home for 10 years or more. The property must be in Australia, and caravans, houseboats and mobile homes do not qualify.

The sale must also qualify, in full or in part, for the main residence capital gains tax exemption. A home that was partly rented out or used to earn income at some stage may therefore still be eligible, provided at least a partial exemption applies.

A spouse who is not on the title can still make a downsizer contribution, as long as the other requirements are met. That can matter for couples where the home was bought in only one partner's name.

The 90-day Deadline, the Form and the One-off Rule

Timing is strict. The contribution must be made within 90 days of receiving the proceeds of sale, which is usually the settlement date.

The ATO can extend that deadline in some circumstances, and asks people seeking more time to contact it on 13 10 20. An extension has to be granted; it cannot simply be assumed.

The fund must also receive the downsizer contribution form (NAT 75073) before or at the time the contribution is made. Without it, the fund may not treat the money as a downsizer contribution.

The concession is also a one-off. you can only make one downsizer contribution, so it cannot be repeated on the later sale of another home.

Hypothetical Examples: How the Limits Play Out

Hypothetical example: Maria and Tom, both 67, sell the house they have lived in for 22 years for $1.4 million, and the sale is fully exempt under the main residence rules. Only Maria is on the title.

Each can contribute up to $300,000, for a combined $600,000, within 90 days of settlement. Because $600,000 is less than the $1.4 million sale price, the proceeds limit does not bite. Tom can contribute even though he is not on the title.