get the lowdown on downsizing


So the kids have left home, you’ve got more room than you need… and the government’s kind of hoping you might be ready to sell.


You’ve probably heard by now: that people over age 60 can add up to $300,000 per person into their super account from the sale of their home.

Scaling back to unlock some extra cash can make sense (and halve your housework). But adding six-figure sums to your super after age 60 needs a lot of thought.


Things to consider

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.

If you've retired or reached age 65, there's a maximum amount of $1.7 million which you can transfer into an income stream (which gives you tax-free earnings). Anything above this amount must go in a super account (investment earnings of which are taxed at 15%). If you're transitioning to retirement, you can have more than $1.7 million in your income stream account, but you will have to move some out when you reach retirement. 

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

There are also some eligibility conditions around making downsizer contributions to super upon selling your home.  

Consider speaking to a financial adviser to understand the impact of selling your home and making a downsizer contribution.

For more information on downsizer contributions, you can read more on 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 it has been accepted

Send the form to us via: 

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

Please note you'll need to wait for us to confirm that your form has been accepted before you transfer any money. 


Step 3: Pay your contribution 

Your unique payment details can be found in your online account.

We'll let you know as soon as your downsizer contribution has been completed. 


we can help

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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