downsizer contributions

Downsizing your home could help you upsize your super savings. If you’re 55 or over and ready to downsize, you could be eligible to add up to $300,000 to your super from the sale of your home.



what are downsizer contributions?


You’ve probably heard by now: people aged 55 and over can add up to $300,000 per person, or $600,000 for a couple, into their super account from the sale of their home.

If you’ve got more room than you need, scaling back to unlock some extra cash can make sense (and halve your housework). But adding six-figure sums to your super after age 55 needs a bit of extra thought.



how do downsizer contributions work?


Simply put, the downsizer contribution scheme lets you use money from the sale of your home to help boost your super balance. 

You need to make your downsizer contribution within 90 days of the sale of your home. This type of contribution doesn’t count towards any of the contribution caps. And it won’t affect your total superannuation balance until it’s recalculated at the end of the financial year.

You need to meet certain eligibility criteria to make a downsizer contribution. There are also some things to consider before deciding if it’s right for you.



  • You are 55 years or older (there is no maximum age limit).
  • The home you sell is in Australia, and you or your spouse need to have owned it for at least 10 years.
  • The home you sell is not a caravan, houseboat or other type of mobile home.
  • The home you sell is fully or partially exempt from capital gains tax.
  • You haven’t already made a downsizer contribution to your super from the sale of another home, or from the part sale of your home.


You can find the full list of eligibility criteria on the ATO website



things to consider


Downsizer contributions can be a useful way to boost your super balance.

For some, there can be some real upsides to downsizing:

  • making a downsizer contribution can give your super a much-needed boost if you don’t have enough for retirement
  • there’s no work test or upper age limit to make a downsizer contribution
  • you don’t need to buy another home
  • the money you contribute is tax-free when you start to get an income through an income stream.


But there are also some important things to consider before you decide if it's right for you.


Age Pension eligibility

Selling your home could reduce the amount of Age Pension you’re entitled to — maybe to zero. That’s because your family home isn’t counted under the means-test for the pension — but everything else you own is.

So, if you sell up and make a downsizer contribution, it will be counted towards the Centrelink income and assets test.


Transfer balance cap

Downsizer contributions count towards your transfer balance cap, which is currently $1.9 million. This cap applies when you move your super savings into retirement phase. It’s also one of the things used to figure out your Age Pension eligibility.

Anything above the transfer balance cap must go in a super account. Investment earnings in your super account are taxed at 15%.

If you're transitioning to retirement, you can have more than $1.9 million in your income stream account. But you will have to move some out when you reach retirement and start to access it. 


Tax and Centrelink

There are some other tax and Centrelink issues you also need to consider before you decide what to do.

It’s a good idea to speak to a financial adviser to understand the impact of selling your home and making a downsizer contribution. Get advice with HESTA.


For more information on downsizer contributions, you can visit the ATO website.




how to make a downsizer contribution


Step 1: Complete the form

Complete the ATO Downsizer contribution into super form before you make a contribution.

This tells us you intend to make a downsizer contribution, so we can get ready to accept it.


Step 2: Send the form to us and wait for confirmation

Send the form to us via:

  • Email:
  • Post: HESTA, Locked Bag 5136 Parramatta NSW 2124

: A member of our team will get in touch by phone or email to confirm that we’ve accepted your form. You’ll need to wait to hear from us before you transfer any money.


Step 3: Pay your contribution

The easiest way to make your contribution is with BPAY® or electronic funds transfer (EFT). You can find your BPAY or EFT details in your HESTA online account.

Log in to your account to get your BPAY or EFT details




not sure which way to go?

Our advice team can help you work through the benefits, and possible downsides, of the downsizing rules. It’s not a one size fits all solution, so a bit of advice now could really pay off tomorrow.

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