Are you thinking about downsizing your home? Well, we have some great news for you! If you’re 55 or older and ready to downsize, you could add up to $300,000 to your super from the sale. Now that’s some SUPER savings!
Sometimes you just have a little more room than you need. Maybe your kids have all left home, you want to save money on bills, or time on housework – don't we all. Or, you might just want some extra cash for your retirement years.
The good news is, once you turn 55, you can add up to $300,000 as a single person, or $600,000 as a couple, into your super account from the sale of your home. This contribution does NOT count towards any of your contribution caps, and you won’t pay any contributions tax. Win-win!
Well, there isn’t one! But there are some things to consider before you decide it’s right for you.
First, let's talk eligibility requirements. To make this contribution, you must make sure that:
you’re 55 or older
you make your downsizer contribution within 90 days of the sale of your home
your home is in Australia, and you (or your spouse) have owned it for at least 10 years
your home is not a caravan, houseboat, or mobile home
your home is fully or partially exempt from capital gains tax
you haven’t already made a downsizer contribution to your super
If you want to look into the full eligibility criteria, head over to the ATO website.
Now, there are some other important things to consider:
Selling your home could reduce the amount of Age Pension you’re entitled to. Your family home isn’t counted under the means-test for the pension, but everything else you own, including your super, is.
Downsizer contributions are counted towards your transfer balance cap, which is currently $1.7 million.
If your downsizer contribution puts your super balance over $1.7 million, you generally won’t be able to make any after-tax contributions in the future.
So, before you decide if this is right for you, it’s a good idea to speak to a financial adviser about how this could affect your retirement.
So, you’ve decided making a downsizer contribution is for you, now what? Making the contribution is SUPER simple. Once you’ve sold your home, just follow the steps below.
Step 1: Download and complete the Downsizer contribution form.
Step 2: Send the form to us before or alongside making your contribution. You can send the form to us via:
Post: GuildSuper, GPO Box 1088, Melbourne, VIC, 3001
You’ll receive confirmation via email or phone.
Step 3: Pay your contribution by BPAY or electronic funds transfer.
Page last updated 29 November 2023