Downsizer superannuation contributions

The new downsizer superannuation contribution rules may apply to you if you’re over 65 and have owned a property for at least 10 years.

What is the downsizer superannuation contribution policy?

On 1st July 2018, the new downsizer superannuation contribution rules came into effect. These rules provide an option for those over the age of 65. It does not matter whether are still working or not. You can contribute funds from the sale of your home to super. This contribution can be made whether you have already used up your non-concessional caps or have more than $1.6m in super.

Maybe you’re in a large double-storey property, or maybe your kids have left the nest. Maybe you’re thinking that now is the time to downsize to a smaller unit, apartment, or retirement village. You can contribute a maximum of $300,000 per person from the proceeds of selling your property. If you’re a couple you can make a combined contribution of up to $600,000 into your superannuation.

downsizer superannuation contribution

Downsizer superannuation contribution rules 

There are some rules and guidelines around this –

  • You or your spouse must have held the dwelling at all times for 10 years leading up to the date of sale
  • The property doesn’t have to be a main place of residence for the full 10 years—just a portion within the ten years can qualify if you have maintained ownership
  • You have to make the contribution within 90 days from the change of ownership; and
  • The contract of sale is entered on or after 1 July 2018.

This is a great opportunity to have the funds inside super where all earnings are taxed at a maximum rate of 15%. Outside super your tax rate may be significantly higher. Now is a great time to reach out to your financial adviser to discover how you can take advantage of the downsizer contribution and work out a strategy tailored to your retirement goals.

Pacific Finance Australia can put you in touch with our in-house Financial Adviser – Luke Watson

Luke Watson

Luke is a qualified Financial Adviser with 10 plus years’ experience in the Investment Industry. He has an excellent understanding of Market Operations, Financial Planning, Life Insurance and Large Capital Investment. Luke can work with you to identify a long-term strategy to help you meet your retirement goals.

Contact your Pacific Finance Australia Broker today on 08 9321 2120 or send us an email at for more information.