Downsizing contributions into superannuation

From 1 July 2018, the Australian Government introduced Contributing the proceeds of downsizing into superannuation (downsizing) measure. This measure, which provides you with the ability to contribute proceeds of downsizing into a superannuation accumulation account, is part of a package of reforms intended to reduce pressure on housing affordability in Australia.

It applies to the sale of your home, which was your main residence, where the exchange of contracts of sale occurred on or after 1 July 2018.

If you are 65 years old or older and meet the eligibility requirements, you may be able to make a downsizer contribution into a superannuation accumulation account of up to $300,000 from the proceeds of selling your home. You can only make downsizing contributions for the sale of one home. You can't access it again for the sale of a second home.

If you sell your home, are eligible and choose to make a downsizer contribution, then there is no requirement for you to purchase another home.

Your downsizer contribution:

  • is not a non-concessional contribution and will not count towards contributions caps
  • can still be made if you have a Total Super Balance greater than $1.6m
  • will not affect your Total Super Balance until it is re-calculated to include all your contributions, including your downsizer contributions, on 30 June at the end of the financial year. For example, from this date if your Total Superannuation Balance is greater than $1.6m, then this will impact your ability to make non-concessional contributions
  • will count towards your Transfer Balance Cap, currently set at $1.6m (which applies when you move your super savings into retirement phase)
  • is not tax deductible and will be taken into account when determining eligibility for the age pension, and
  • must be made within 90-days of settlement.

You and your spouse can make a downsizer contribution of up to $300,000 each into a superannuation account such as GuildSuper. Download and complete the Downsizer contribution form and send it along with your payment.

More information on downsizer contribution eligibility.

GuildSuper accepts downsizer contributions

You can make a downsizer contribution anytime into your GuildSuper account. If you do not have a GuildSuper account, then you can quickly create one by completing the Join GuildSuper form.

Then you can easily make downsizer contributions into your GuildSuper account by:

  1. downloading and completing the Downsizer contribution form, and
  2. sending the form to GuildSuper along with a cheque made payable to "GuildSuper"


How to make a downsizer contribution?

Send GuildSuper a Downsizer Contribution Form along with your cheque, made payable to GuildSuper. Be sure to state your membership number.

Not a GuildSuper member?

Then Join Online in just two minutes. Once your GuildSuper account is set up, you will be issued with a membership number. Send in the Downsizer Contribution Form and the cheque stating your membership number.

How will the downsizer contribution be invested?

It will be invested in the investment option you have chosen for your GuildSuper membership. If you have not made an investment choice, then it will be invested in the Consolidating lifestage of the MySuper Lifecycle Investment Option. The Consolidating lifestage has 50% Growth and 50% Defensive asset allocation. This means that 50% of your contributions will be invested in Growth assets such as Shares and Property. To change your investments securely and quickly, log into MemberOnline.

What if the ATO informs GuildSuper that your downsizer contribution has been rejected?

The ATO can reject your downsizer contribution if you do not meet the eligibility criteria. If GuildSuper is informed of this rejection and you are aged 75 or over, then your downsizer contribution will be refunded to you.

What if the downsizer contribution is refunded to you?

If the ATO informs GuildSuper of the rejection and the contribution needs to be refunded to you, then the amount refunded to you will be based on the unit price at the date of the refund. This may be higher or lower than the unit price applied on the date your contribution was received. Depending on how investment markets have behaved, this means that you may receive more or less than the amount you originally contributed.