Downsize your home and boost your retirement savings
If you’re thinking about downsizing your family home for retirement, you may be able to contribute money from the sale into your super.
This page explains:
What is a downsizer contribution?
If you’re aged 55 or over and meet eligibility requirements, you can contribute up to $300,000 as an individual, or up to $600,000 as a couple ($300,000 in each account) from the sale of your family home into your super account.
The amount you contribute can’t be greater than the total proceeds of the sale of your home.
The downsizer contribution scheme was introduced by the Federal Government to reduce pressure on housing affordability in Australia.
Who is eligible?
To be eligible to make a downsizer contribution, you need to meet all of these criteria:
- You are 55 years or older
- Your home has been owned by you or your spouse for at least 10 years
- Your home is in Australia and is not a caravan, houseboat or other mobile home
- The proceeds (capital gain or loss) from the sale of the home are either exempt or partially exempt from capital gains tax
- You have not previously made a downsizer contribution to your super from the sale of another home or from the part sale of your home
- You make your downsizer contribution within 90 days of receiving the proceeds of sale, which is usually at the date of settlement
- You complete and submit the Australian Taxation Office’s (ATO’s) downsizer contribution into super form, either before or at the time of making your downsizer contribution
If you have a GESB Super or West State Super account, you can make a downsizer contribution. If you don’t have one of these accounts, a GESB Super account will be opened for you.
For full details of the eligibility criteria, please visit the ATO website.
How to make a downsizer contribution →
1. Complete the form
Download formComplete and print the ATO’s downsizer contribution into superannuation form
2. Attach your cheque
Make a cheque payable to GESB for your downsizer contribution amount.
Please note: we only accept downsizer contributions by cheque.
3. Mail it to us
Mail your form and cheque to:
GESB, PO Box J755, Perth WA 6842
Case study: making a downsizer contribution
Anthony and Michelle are both aged in their 60’s. They sell the family home they lived in for 10 years for $400,000. They can contribute up to $400,000 to their super from the proceeds of the sale.
They can choose to halve the contribution and add $200,000 each to their super accounts. Or they could split the contributions – for example, by adding $300,000 to Michelle’s super and $100,000 to Anthony’s super.
View more examples on the ATO website.
Things to consider before making a downsizer contribution →
Contribution caps don’t apply
Downsizer contributions are not taxed and do not count towards your contributions cap. However, if you use your super to open a Retirement Income Allocated Pension account the transfer balance cap will apply.
It may affect your Age Pension
Downsizer contributions are not tax deductible and may affect your Age Pension eligibility through the assets test.
You can request an extension
You may be able to request an extension from the ATO to make a downsizer contribution. The ATO will consider the circumstances causing the delay that are outside of your control, before granting the extension.
More information
- Visit the ATO website for more information on eligibility requirements
- Complete the ATO’s downsizer contribution into super form
- Learn more about adding to your super
Need help
- Call us on 13 43 72
Thank you for printing this page. Remember to come back to gesb.wa.gov.au for the latest information as our content is updated regularly. This information is correct as at 29 March 2024.