--- title: "Downsize your home and put the profit into your super - Sapience Financial" description: "Discover how downsizer contribution to super can help Australians to release built-up equity to pay for the costs of retirement or in-home support that will allow them to stay in a smaller more easily managed home longer." url: "https://finallysorted.com.au/blog/sell-the-family-home-and-contribute-to-your-super-fund" date: "2026-05-31T05:16:12+00:00" language: "en-GB" --- # Downsize your home and put the profit into your super - 🏠 Wealth Builders & Home Finance - [ downsizer contributions ](https://finallysorted.com.au/all-tags/downsizer-contributions) - [ superannuation ](https://finallysorted.com.au/all-tags/superannuation) - [ 🏠 Wealth Builders & Home Finance ](https://finallysorted.com.au/insights/wealth-builders-home-finance) ![house with red wall](https://finallysorted.com.au/images/blog-assets/sell-the-family-home-and-contribute-to-your-super-fund-sapience-financial.jpg) A new type of super contribution could allow you to contribute funds from a home sale to your super fund Reading Time: 5 minutes --- ### A new type of super contribution has been announced and it’s called the *downsizer superannuation contribution* (DSC) ### Putting money into your super fund or paying down your home mortgage has always been a difficult choice for many Australians. #### *Read in this article* 1. [So how does it work?](https://finallysorted.com.au/blog/sell-the-family-home-and-contribute-to-your-super-fund#so-how-does-it-work) 2. [What's the eligibility for the downsizer contribution?](https://finallysorted.com.au/blog/sell-the-family-home-and-contribute-to-your-super-fund#whats-the-eligibility-for-the-downsizer-contribution) 3. [Does this work for couples with different super funds?](https://finallysorted.com.au/blog/sell-the-family-home-and-contribute-to-your-super-fund#does-this-work-for-couples-with-different-super-funds) 4. [Frequently Asked Questions: Downsizer Super Contributions](https://finallysorted.com.au/blog/sell-the-family-home-and-contribute-to-your-super-fund#frequently-asked-questions-downsizer-super-contributions) 1. [Does a downsizer contribution affect my Age Pension eligibility?](https://finallysorted.com.au/blog/sell-the-family-home-and-contribute-to-your-super-fund#does-a-downsizer-contribution-affect-my-age-pension-eligibility) 2. [Can I use the downsizer scheme for an investment property?](https://finallysorted.com.au/blog/sell-the-family-home-and-contribute-to-your-super-fund#can-i-use-the-downsizer-scheme-for-an-investment-property) 3. [What is the '90-Day Rule' for downsizer contributions?](https://finallysorted.com.au/blog/sell-the-family-home-and-contribute-to-your-super-fund#what-is-the-90-day-rule-for-downsizer-contributions) 4. [Can my spouse contribute if only my name was on the property title?](https://finallysorted.com.au/blog/sell-the-family-home-and-contribute-to-your-super-fund#can-my-spouse-contribute-if-only-my-name-was-on-the-property-title) But from 1st July 2018, new laws are being introduced to allow people to downsize and sell their family home and pay part of the proceeds into their super fund. The new law is designed to reduce pressure on housing affordability by encouraging older Australians to vacate larger homes for smaller easier to maintain homes. For some Australians, selling the family home can be a great way to release built-up equity to pay for the costs of retirement or in-home support that will allow them to stay in a smaller more easily managed home longer. ### So how does it work? - Your downsizer contribution will not count towards your super contributions caps or be affected by the total superannuation balance test in the year you make it. - However, it will count towards your total super balance and transfer balance cap, currently set at $1.6 million. This cap applies when you move your super savings out of the investment phase into the retirement phase. - You can only make downsizing contributions from the sale of one home (and you can't access it again for the sale of a second home). - Downsizer contributions are not tax deductible so any increase in your wealth will be taken into account for assessing eligibility for the age pension. - If you sell your home, are eligible and choose to make a downsizer contribution, there is no requirement for you to purchase another home. - If you have a spouse you may each make a downsizer contribution, even if your spouse was not on the title of your home (as long as the combined value of your spouse’s contribution and your own doesn't exceed your home’s sale price) ### What's the eligibility for the downsizer contribution? You will be eligible to make a *downsizer contribution to super* if you can answer **yes** to all of the following: - You are 65 years old or over at the time you make a downsizer contribution (there is no maximum age limit). - The amount you are contributing is only from the proceeds of selling your home where the contract of sale was exchanged on or after 1 July 2018. - Your home was owned by you or your spouse for 10 years or more prior to the sale. - Your home is in Australia and is not a caravan, houseboat or mobile home. - The proceeds (capital gain or loss) from the sale of the home are either exempt or partially exempt from capital gains tax (CGT) under the main residence exemption or would be entitled to such an exemption if the home was a CGT rather than a pre-CGT (acquired before 20 September 1985) asset. - You have given your super fund your completed downsizer contribution form either before or at the time of making your downsizer contribution to the fund. - You make your downsizer contribution within 90 days of receiving the proceeds of the sale, which is usually the date of settlement. - You have not previously made a downsizer contribution to your super from the sale of another home. ### Does this work for couples with different super funds? Yes. Couples will be able to contribute up to $300,000 each, giving a total contribution into a super fund per couple of up to $600,000. Multiple contributions can be made from the proceeds of a single sale, and contributions can be made to different superannuation funds too but the total contribution amount per person cannot be greater than $300,000 or the total proceeds of the sale of the home, less any DSC made by the spouse. Like all large increases in your wealth, make sure you speak with your financial adviser first to see how it will affect your particular situation before making any decisions. **Read More**: If you'd like to learn more, read the Treasury's summary called, [Downsizer Superannuation Contributions](https://treasury.gov.au/sites/default/files/2019-03/Post-passage_fact_sheet_-_Downsizer_.pdf). Contact us for a chat or for more information, visit the [ATO’s website](https://www.ato.gov.au/Individuals/Super/Super-housing-measures/Downsizing-contributions-into-superannuation/). --- ### Frequently Asked Questions: Downsizer Super Contributions #### Does a downsizer contribution affect my Age Pension eligibility? Yes. While your **principal place of residence** is generally exempt from the Centrelink Assets Test, funds held within superannuation (once you reach Age Pension age) are not. Moving equity from an exempt home into an assessable super account may reduce or eliminate your pension. This is a "Sovereign" trade-off between receiving a fortnightly government payment and having total control over a larger, tax-effective investment pool. #### Can I use the downsizer scheme for an investment property? The short answer is no—unless you lived in it. To qualify for the downsizer contribution, the home must have been your **Main Residence** at some point and be eligible for at least a partial Capital Gains Tax (CGT) exemption. Purely investment properties that have never been your home do not qualify for this specific "cap-busting" strategy. #### What is the '90-Day Rule' for downsizer contributions? The ATO is clinical regarding timing. You must make the contribution to your super fund within **90 days** of receiving the proceeds of the sale (usually settlement day). Furthermore, you must provide the *Downsizer Contribution into Super* form to your fund before or at the time of the payment. Missing this window can result in the funds being rejected or treated as standard (and capped) contributions. #### Can my spouse contribute if only my name was on the property title? Yes. As long as you or your spouse owned the home for at least 10 years and you both meet the age requirement (55+), you can **both** contribute up to $300,000 each. This allows a couple to shift up to $600,000 of home equity into their combined super accounts, regardless of which spouse was legally on the title. *Disclaimer: Downsizer contributions are a "once-in-a-lifetime" strategic move with significant interactions between tax law and social security. For a "Black and White" review of your retirement liquidity, we recommend a [confidential consultation](https://finallysorted.com.au/contact).* **Do we sound like the type of people you'd like to do business with?** Call us today on 1300 137 403 or email us [here](https://finallysorted.com.au/index.php?Itemid=704) for a no-obligation private chat about your situation. --- ![author pic drew browne](https://finallysorted.com.au/images/author-pic/contact-drew-browne-advisor-sapience-financial.jpg)**Drew Browne** is a specialty Financial Risk Advisor working with Small Business Owners & their Families, Dual Income Professional Couples, and diverse families. He's an award-winning writer, speaker, financial adviser and business strategy mentor. His business Sapience Financial Group is committed to using business solutions for good in the community. In 2015 he was certified as a B Corp., and in 2017 was recognised in the inaugural Australian National Businesses of Tomorrow Awards. Today he advises Small Business Owners and their families, on how to protect themselves, from their businesses. He writes for successful Small Business Owners and Industry publications. You can read his Modern Small Business Leadership Blog [here](https://finallysorted.com.au/index.php?Itemid=1267). You can connect with him on [LinkedIn](https://www.linkedin.com/in/drewbrowne/). Any information provided is general advice only and we have not considered your personal circumstances. Before making any decision on the basis of this advice you should consider if the advice is appropriate for you based on your particular circumstance. ![Written by Human Not made by AI sapience financial ](https://finallysorted.com.au/images/icons/not-made-by-AI-sapience-financial-black.png) ## Schema ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BlogPosting", "@id": "https://sapience.com.au/blog/sell-the-family-home-and-contribute-to-your-super-fund#blogposting", "mainEntityOfPage": { "@type": "WebPage", "@id": "https://sapience.com.au/blog/sell-the-family-home-and-contribute-to-your-super-fund" }, "headline": "Selling the Family Home: The 2026 Guide to Downsizer Super Contributions", "description": "Unlock up to $600,000 in super contributions after selling your home. Explore the 2026 rules for downsizer contributions, eligibility criteria, and age pension impacts.", "author": { "@type": "Person", "name": "Drew Browne", "jobTitle": "Thought Provocateur", "url": "https://sapience.com.au/about-us/drew-browne" }, "publisher": { "@type": "Organization", "name": "Sapience Financial", "logo": { "@type": "ImageObject", "url": "https://sapience.com.au/images/brand-logo/sapience-financial-h-logo.svg" } }, "datePublished": "2026-04-27", "dateModified": "2026-04-27" }, { "@type": "FAQPage", "mainEntity": [ { "@type": "Question", "name": "What is the age requirement for a downsizer contribution in 2026?", "acceptedAnswer": { "@type": "Answer", "text": "As of 2026, you must be 55 years or older at the time you make the contribution. 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