Are you or your parents over age 65?

Note: You have only 90 days to implement

What is the downsize contribution strategy?

This strategy as the name suggests involves selling your home, purchasing another more modest residence and contributing the surplus funds up to $300,000 per individual member or $600,000 for a couple to superannuation.

The benefit of this strategy is that you now, as a couple have up to $600,000 in cash or investments to live off whilst living in a smaller, cheaper or more modest residence. This strategy could be very beneficial where a couple is contemplating relocating from an expensive capital city such as Melbourne or Sydney to a tree change or sea change location.

Alternatively, the couple may wish to move from a home that has lawns and requires maintenance to a ground floor home unit or townhouse.

Condition to qualify for the downsizers contribution to superannuation

  • You need to be over age 65.
  • Your superannuation fund will not pay tax on the receipt of these contributions.
  • This downsizer contribution can still be made even if your superannuation balance is greater than $1.6M.
  • To qualify your home must have been owned by you or your spouse for 10 years or more.
  • You make the downsizers contribution within 90 days of receiving the proceeds of sale.


  • If you live in a large expensive house with high maintenance costs and large council rates you may wish to move to a lower maintenance property.
  • Generally, if you downsize you have surplus funds.
  • The surplus funds to be used now for enjoyment while you are healthy.


  • You need to do your maths as your Centrelink entitlements could be reduced. This can occur where your assets increase over the Centrelink Assets Test threshold or the income earned on these investments exceed the Income Test threshold.

Should you require further information on the downsizing contribution strategy, please feel free to contact Peter Quinn by submitting an enquiry or calling us on +61 2 9580 9166.

The information in this document does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it.  It is important that your personal circumstances are taken into account before making any financial decision and it is recommended that you seek assistance from your financial adviser.