We are experiencing technical issues, and our Service Centre phone lines are temporarily unavailable. We apologise for any inconvenience and are working to restore normal service. 

The Downsizer Contribution can help you unlock the equity in your home

Planning and advice | | 2 min read


Thinking of making that sea change or downsizing the family home? The Downsizer Contribution scheme can help you unlock the equity in your home while boosting your super.

If you’re 60 or older and you sell your family home, you can contribute up to $300,000 (per person) towards your super. This applies even if your super balance exceeds the A$1.6 million cap.

The program is primarily aimed at self-funded retirees and designed to help them downsize while also freeing up the equity in their homes.

Here's how it works

The downsizer contribution scheme is intended for the family home, which means you must have owned the property for at least 10 years and used it as your primary place of residence. 

There are other criteria as well, which we've outlined below: 

  • Be aged 60 or over 
  • The maximum contribution per person is $300,000
  • If you’re a couple selling your property, both of you can contribute into your super, up to a combined maximum of $600,000
  • You must notify your super fund in advance if you’re making a downsizer contribution so that it is entered as exempt from the non-concessional contributions cap
  • You cannot claim a personal tax deduction for a downsizer contribution
  • If the property sells for less than $300,000 you can only contribute up to the property’s value, i.e.  $250,000 if that’s what the property sold for
  • You must make your downsizer contribution within 90 days of receiving the proceeds of the sale. 

Visit the ATO website for more information on eligibility criteria.

Professional advice is important 

The Downsizer Contribution scheme is a way to top up your super even if you are unable to contribute to superannuation due to your age, work status or the amount you have in super.

That being said, it can impact your eligibility for the government Age pension and other benefits. So it’s important to speak with a financial planner and have a proper understanding of the costs and benefits, and how it may impact your financial position.

Any figures quoted are correct at the time of writing but may be subject to change.

Authorised by Togethr Trustees Pty Ltd (ABN 64 006 964 049; AFSL 246383) ('Trustee') the trustee of the Equipsuper Superannuation Fund (ABN 33 813 823 017). Catholic Super is a division of the Equipsuper Superannuation Fund (ABN 33 813 823 017). Financial advice services may be provided to members by the trustee's related entity. 

Togethr Financial Planning Pty Ltd (ABN 84 124 491 078; AFSL 455010). The information contained herein is general information only. It has been prepared without taking into account your personal investment objectives, financial situation, or needs. It is not intended to be, and should not be, construed in any way as investment, legal or financial advice. Please consider your personal position, objectives, and requirements before taking any action. Past performance is not a reliable indicator of future performance.

© 2020 Togethr Trustees Pty Ltd. For further information please our contact our Service Centre on 1300 655 002 or visit our website: csf.com.au.

Join our award-winning fund

Plan for your future with the industry fund that works hard for you.

Join us