If you’re 65 or older and are thinking about finding a home that’s a better fit for your needs or want to access the equity in your home, the super downsizing scheme may be a good option.

How it works.

If you’re 65 or older, you can put $300,000 of the proceeds of the sale into your super.

Here’s what you need to know.

  • You can only use the downsizer contribution once.
  • The contribution isn’t counted as a non-concessional contribution, meaning it doesn’t count against your caps.
  • If you sell your home, there is no requirement to buy another.
  • The proceeds (either capital gains or loss) are either exempt or partially-exempt from the capital gain tax.
  • You or your spouse must have owned the home for at least 10 years prior to the sale.
  • If you own the home with your spouse, both of you can put up to $300,000 into your super or account-based pension that’s held by your superannuation fund.
  • You need to file a downsizer contribution form with the fund before or at the time you make your contribution.
  • You must make the contribution within 90 days of receiving the proceeds of the sale, which is usually the date of the settlement.
  • Your home is in Australia and is not a caravan, houseboat or other mobile home.
  • The amount you are contributing is from the proceeds of selling your home where the contract of sale exchanged on or after 1 July 2018
  • Please note - this contribution will count towards the $1.6 million balance cap, and may be assessable when determining eligibility for the age pension.