Retirement
10 things to know about downsizer contributions
Australians will be able to contribute certain proceeds from home sales to their superannuation from 1 July, but there are a number of factors to consider.
10 things to know about downsizer contributions
Australians will be able to contribute certain proceeds from home sales to their superannuation from 1 July, but there are a number of factors to consider.

According to special counsel, superannuation at SUPERCentral Michael Hallinan, there are at least 10 conditions those considering downsizing should be aware of.
In addition to a maximum $300,000 individual cap, older Australians need to meet these conditions:
1. While the contribution can be made even if a total super balance exceeds $1.6 million, the additional contributions cannot increase the transfer balance account.
2. “You must sell a current or former principal place of residence on or after 1 July 2018 (i.e. exchange contracts on or after 1 July 2018),” Mr Hallinan said.

3. The property needs to be located in Australia and cannot be a mobile home, caravan or houseboat. Additionally, prospective sellers need to have owned the home for at least 10 years.
4. However, while the house needs to have been a principal place of residence at some point in the buyer’s life, it doesn’t need to be the principal place of residence immediately before the sale.
5. The contribution to superannuation needs to be made within 90 days of settlement.
6. The downsizer contribution is available only to those 65 and over. However, it can still be made “even if you are over age 75 and do not satisfy the work test”.
7. Additionally, if a prospective seller is making the contribution on the behalf of a spouse, the spouse also needs to be at least 65.
8. “The source of the contributions for downsizer contributions must be one current or former residence: all downsizer contributions for one individual must be made from the same property,” Mr Hallinan continued.
9. “However, you may have one residence from which your downsizer contributions are sourced and your spouse may make their downsizer contributions from another property.”
10. Finally, Mr Hallinan noted that any unused portion of the downsizer contribution cap “unfortunately” cannot be transferred to a partner.

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