Over 65 and selling your family home?

Over 65 and selling your family home?

You might just have one last opportunity to get money into super!


From 1 July 2018, if you are over 65 and sell your principal place of residence, you may be eligible to contribute up to a maximum of $300,000 to your super fund.

The contribution doesn’t count as a non-concessional contribution, and can even be made by those with more than $1.6m in superannuation.  There is also no maximum age limit on when the contribution can be made.

The maximum amount you can contribute is the lesser of the sale proceeds or $300,000. The spouse of a ‘downsizer’ is also able to contribute, even if they were not an owner of the property.

Are you eligible?

To make a downsizer contribution, you:

  •  Must have lived in the house as your primary place of residence;
  • Have owned the house for at least the last ten years;
  •  You (or your spouse) signed the contract of sale after 1 July 2018;
  •  Contribute the proceeds within 90 days of settlement;
  •  Be 65 or older at the time of making the contribution; and
  •  Not have made a downsizer contribution before.

How does it work?

Elderly couple with their grandchildren

Richard and Sue

Richard and Sue, aged 80 and 77, sold their home in Melbourne East, as they have decided to move to Queensland. They own the property jointly and first starting living there in 1980. Recently, they were able to sell the home and received $1.2 million.

Richard and Sue choose to fully utilise the downsizer contribution cap, and contribute $300,000 each ($600,000 in total) into their superannuation fund.

Older couple enjoying wine together

Bill and Mary

Bill and Mary, aged 68 and 66, sold their home in Shepparton, where they have lived since 2000, in order to move permanently to their holiday house at Point Lonsdale. They sold their house for $500,000. Although the house was only in Mary’s name, Bill, as Mary’s spouse, is also eligible to contribute.

The cap for downsizer contributions is $300,000 per person (for a total of $600,000).  Bill and Mary can only put in a total of $500,000 between them, as they can’t contribute more than the total sale proceeds.

Bill and Mary see their adviser, who recommends that they split the proceeds evenly and contribute $250,000 each to their superannuation fund.