The rules around super have changed so much lately that it is almost hard to keep up. You might think some of the changes weren’t all that great but a little gem has been hidden in the bunch that offers some great opportunities for those over 65. It is called the downsizing rule. But how does it work and how can we make sure we don’t breach our contribution caps within our super?

The downsizing rule is available to anyone over the age of 65 that has owned their home for at least 10 years. During that time the home may have been used as a rental but that is OK. As long as the property is eligible for at least a partial exemption from capital gains tax under the main residence rule.

When this property is sold you are able to put up to $300,000 into super (or $600,000 per couple). This does not count towards your contribution caps and you do not need to meet the work test. But keep in mind you can only access this rule once.

Some special conditions and benefits exist including the following:

 There is no maximum age for making the downsizer contribution
 Your spouse does not need to be on the title in order to contribute up to $300,000 to super
 The amount you contribute must be from the proceeds of selling your home
 The contract of sale must have been entered into after 1 July 2018
 Your super fund must receive the contribution within 90 days of receiving the proceeds (usually settlement date)
 You can only use this rule once
 You do not need to buy a smaller home (in fact you don’t even need to buy another home at all)

This rule offers a great opportunity to beef up your super beyond the age of 65. It is important to get it right however so check out the full eligibility details in the ATO link here:

Or if you want to discuss this with one of our specialists contact us here


This information has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation or needs.