A downsizer contribution is when you sell your home and you put the proceeds of the sale into your super. The name refers to the traditional process of selling the big family home and moving into something smaller for retirement.
There may be tax advantages by moving money from your property sale into super*, as income earned in super is taxed at 15%, instead of as high as 45% for the top income bracket.
A downsizer contribution is not counted towards your normal contribution cap. It’s treated separately and capped at $300,000 for singles, or $600,000 for a couple.1
Having a smaller house with lower maintenance means more time for doing the things you love. Plus, the freed-up funds injected into your super stays invested, so it keeps earning.
Watch this short video about the benefits of downsizing and the impact it can have on your super savings and retirement.
1 Downsizer contributions can’t exceed the total proceeds from the home sale. For example, if a couple sell their home for $550,000, that’s all they can contribute as a downsizer contribution. They can’t add additional funds to reach the $600,000 cap.
* Before contributing, consider the relevant superannuation thresholds including the current annual limit for all before-tax contributions and after-tax contributions. Exceeding any of these thresholds, may reduce any tax benefits you could receive. For further information see aware.com.au/grow.
[AD3] Fees are payable for comprehensive advice, including about your financial situation outside super. If you decide to move forward with comprehensive financial planning, we’ll explain our fees before you begin.
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