If you’re considering selling your home, you may be able to contribute up to $300,000 of the proceeds to your Cbus Super account using a downsizer contribution.
Anyone aged 55 and over can add up to $300,000 per person ($600,000 for a couple) from the sale of their home into their super account.
To be eligible, you or your spouse must have owned your home (in Australia) for at least 10 years and it must have been your main residence for tax purposes at least once during the time that you owned it*.
For more details, download the Downsizer contribution fact sheet (PDF)
| If... | Then... |
|---|---|
| Alex and Nadia sell their home for $800,000 | Alex and Nadia can make a downsizer contribution of up to $300,000 each into their super. |
| Alex and Nadia sell their home for $400,000 | Alex and Nadia’s downsizer contributions can’t exceed $400,000 in total. |
| Alex and Nadia sell their home for $600,000 and only Nadia’s name is on the title. | Both Alex and Nadia meet all the other requirements, so they can both make a downsizer contribution of up to $300,000 each. |
Your downsizer contribution needs to be in your Cbus Super account within 90 days of your home changing owners. You must also provide the ATO’s Downsizer contribution into superannuation form either before or when you make the contribution.
You may be able to request a longer period to make your downsizer contribution in some circumstances. You should request an extension from the ATO before the 90 day period has expired. See ato.gov.au/downsizing for more information
You’re eligible to make a downsizer contribution to your super if:
* Your home is exempt or partially exempt from capital gains tax (CGT) under the main residence exemption or would be entitled to an exemption if the home was CGT rather than a pre-CGT asset (acquired before 1 September 1985). Please see ato.gov.au for more.
You don’t need to purchase another home, and you don’t have to ‘downsize’
To make a downsizer contribution to your super, you only need to sell your home and meet the eligibility criteria (including having owned the property for 10 years or more). There’s no requirement to purchase another home, and you can move into any living situation suitable for you.
There’s no upper age limit
To make a downsizer contribution you need to be 55 years or older – there’s no upper age limit. So if you’re 90 and sell your home to move into residential care, you can still make a downsizer contribution providing you meet the eligibility criteria.
Downsizer contributions are not tax deductible
Your downsizer contribution is not tax deductible and it may affect your Age Pension eligibility through the asset and income tests.
Age Pension asset and income tests are impacted
Your downsizer contribution will be included in the asset and income tests when determining your eligibility for the Age Pension.
Downsizer contributions don’t count towards any super contribution caps
Your downsizer contribution doesn’t count toward your contributions caps and can be made even if your total super balance is greater than $1.9 million.
You can’t make a downsizer contribution into an income stream (pension) product
A downsizer contribution can only be paid into a super account. If you’re no longer working, you can open a Cbus Personal Super account. You can join easily at cbussuper.com.au/join or call us on 1300 361 784.
Any downsizer contributions will count towards your transfer balance cap
The transfer balance cap is the limit for how much super you can transfer into tax-free retirement accounts (like the Fully Retired income stream). The general transfer balance cap is currently $1.9 million per person across all your tax-free retirement accounts.
However, your personal transfer balance cap may be less than $1.9 million if you commenced a tax-free retirement account prior to 1 July 2023. It’s your responsibility to determine whether the total amount across all your tax-free retirement accounts is under your cap.
You can make multiple downsizer contributions
You can make multiple downsizer contributions from the sale of your home, providing the total of all your contributions doesn’t exceed $300,000 or the total sale of your home (less any downsizer contributions your spouse has made).
If you make multiple downsizer contributions or downsizer contributions to different super funds, you’ll need to provide a separate Downsizer contribution into super form for each contribution.
You can withdraw your downsizer contribution
You can withdraw as much from your super as you need when you are over the age of 65. For example, if you need extra funds to buy another home, you can withdraw some or all of your downsizer contribution at any time. If you are under the age of 65, certain conditions need to be met to withdraw your funds and there may be tax implications if you are under age 60.
To make a downsizer contribution to Cbus Super, you’ll need to:
Simply visit cbussuper.com.au/join to join Cbus Super.
If you’re still working and receiving super contributions from an employer, you’ll need a Cbus Industry Super account. If you’re not working, you could consider opening a Cbus Personal Super account.
You can download a copy of the Downsizer contribution into superannuation form at ato.gov.au/downsizing. You’ll need to include your Cbus Super member number on your form.
If we don’t receive your form prior to, or when you make your downsizer contribution, your contribution will be treated as a personal contribution which has its own set of rules and limits. In some cases, this means your contribution may be returned to you or it might be taxed at a higher rate. Download our Making extra contributions fact sheet for more information.
If your spouse is making a downsizer contribution, they’ll need to have a separate account and submit a separate Downsizer contribution into superannuation form.
