How you can make a contribution
- Contact your super fund(s) to check that they accept downsizer contributions.
- You’ll need to submit a Downsizer contribution into super form (NAT 75073) with or before your contribution is made. If you don't, your fund may not be able to accept your contribution as a downsizer contribution.
- If you make multiple contributions to one or multiple super funds, you must provide a Downsizer contribution into super form for each contribution, remembering the total of your contributions must not exceed $300,000.
- Contributions must be made to your super fund within 90 days of receiving the proceeds of sale, however in some circumstances you may be able to request an extension of time.
How you can request an extension of time
You may be able to request a longer period to make your contribution. For example, where a delay has been caused by factors outside your control, like ill health or a death in the family. However, an extension of time will not be granted to allow you or your spouse to meet the age requirement.
Where possible, an extension of time should be requested before the 90-day period from settlement of your home has expired.
Recent law changes mean that from 1 January 2023 the downsizer eligibility age is reduced to 55 years or older. If you are aged 55–59, you are not eligible to make a downsizer contribution until after 1 January 2023. If you settled your home more than 90 days prior to 1 January 2023, it would not be appropriate for us to grant an extension of time until after 1 January 2023, when the downsizer eligibility age changes from 60 years to 55 years.
You will also be able to seek a review of any decision we make in allowing a longer period. If you are dissatisfied with the length of the extension, or a decision not to allow a longer period complete the Objection form – for taxpayers (NAT 13471).
You can phone us on 13 10 20 to apply for an extension of time.
Example: Ben – extension granted
Ben is 77 years old and decides to sell his family home of 15 years. Settlement occurs on 1 August 2019. He purchases a new home in a retirement village which is due to settle on 1 October 2019.
The retirement village has only just been built and Ben’s settlement is delayed until 1 December 2019 while final council approvals are obtained.
Ben does not want to contribute funds from the sale to his super until after the settlement of his new property to ensure he has enough money to purchase and move into the property.
Upon his request, we give Ben an extension of time to contribute until 1 February 2020. This extension allows Ben enough time to settle on the new property and contribute the remaining money from his sale.
Ben can afford to contribute $200,000 to his super fund after the sale and makes this on 25 January 2020.
Example: Rebecca – extension not granted
Rebecca turned 54 years old in January 2023. She sells her family home which she has lived in for 30 years with her husband James, who is 67. After the sale Rebecca requests an extension of time to make a downsizer contribution, as it is more than 90 days from the date of settlement until she turns 55.
We do not extend the timeframe on the basis that the timing of the sale was within Rebecca's control and is in excess of the 90 days allowed to make the contribution.
Instead, Rebecca decides to make a non-concessional contribution to her superannuation from the sale proceeds which counts towards her non-concessional contributions cap.
Her husband James is eligible to make a downsizer contribution and contributes $300,000 to his super fund.
Note: In this example, if Rebecca was to turn 55 years within 90 days of settlement, she could retain the proceeds and make the downsizer contribution to her fund after she met the age eligibility, so long as she did so within the 90 day period.
Example: legislation change
Carl is 56 years old and in August 2022 sells his family home. Settlement occurs on 31 August 2022.
At this stage Carl is ineligible to make a downsizer contribution as he has not reached the downsizer eligibility age (from 1 July 2022 – 31 December 2022, the eligibility age was 60 years or over. Prior to 1 July 2022, it was 65 years or over).
When Carl realises that the downsizer eligibility age is reducing to 55 from 1 January 2023, he requests an extension of time to make a downsizer contribution after that date, as this will be over 90 days from when he settled his home.
It would not be appropriate for us to grant an extension of time to allow Carl to meet the age requirement due to a legislation change.
End of example
If you make an invalid contribution
If we become aware that your contribution does not meet the eligibility requirements, your fund will need to assess whether it could have been made as a personal contribution under their acceptance rules.
If your contribution is accepted as a personal contribution, the amount will count towards your non-concessional contributions cap.
If your contribution can't be accepted, the contribution amount will be returned to you by your super fund.
False and misleading penalties may be applied if we identify that your downsizer contribution was not eligible.
Check your eligibility to make a downsizer contribution, how much you can contribute and how to make a contribution.