If you are aged 55 or above, the downsizer contribution rules allow you to contribute up to $300,000 from the sale proceeds of your home to your superannuation fund, provided you meet certain eligibility criteria.

In the 2023-24 financial year, over 57% of individuals making downsizer contributions were women. The average contribution amount for women was slightly higher, at $262,000 compared to $259,000 for men.

The most common age for downsizer contributions is between 65 and 69. From the age of 65, you may withdraw downsizer contributions from your super if your circumstances change, even if you are still working. However, those aged 55 to 64 generally cannot access these funds until they reach age 60 and are retired.

Downsizer contributions are exempt from the upper age limit, work test, and total super balance rules, although there is a cap on how much can be moved to a retirement pension, depending on your transfer balance cap.

For couples, both partners can make downsizer contributions based on the same property. This means that, if eligibility requirements are met, both partners can contribute up to $300,000 each ($600,000 per couple), even if only one partner holds ownership of the property.

To qualify for a downsizer contribution, there is no requirement to purchase another home after selling your current property, nor must the new home be smaller. You may choose to buy a larger or more expensive home and still make a downsizer contribution, assuming you have sufficient funds.

If you have questions about downsizer contributions or need advice on your personal superannuation situation, please feel free to contact us or speak to our consultants at Bates Cosgrave.