---
title: "Getting more money into your super when selling your family home - Sapience Financial"
description: "Find out how to increase your super fund balance by selling your family home. Downsizer contributions can help you make a one-time contribution of up to $300,000 per person into your super fund. Learn more about the eligibility criteria and practical issues."
url: "https://sapience.com.au/blog/getting-more-money-into-your-super-when-selling-your-family-home"
date: "2026-05-26T02:45:43+00:00"
language: "en-GB"
---

#  Getting more money into your super when selling your family home

- 🏠 Wealth Builders & Home Finance
- [ pre-retirement planning ](https://sapience.com.au/all-tags/pre-retirement-planning)
- [ spouse super contribution ](https://sapience.com.au/all-tags/spouse-super-contribution)
- [ super contributions ](https://sapience.com.au/all-tags/super-contributions)
- [ 🌳 Family, Legacy & Aging ](https://sapience.com.au/insights/family-legacy-aging)

  ![Downsize your home and Upsize your Super fund balance](https://sapience.com.au/images/blog/getting-more-money-into-your-super-when-selling-your-family-home-sapience-financial.jpg) Reading Time: 5 minutes

---

### Downsize your home & Upsize your Super

The closer you get to retirement age, the more your thoughts may be to learning about more ways to get more money into your superannuation fund. While you might consider downsizing your home, why not consider upsizing your super balance at the same time?

Getting more money into your super when you sell the family home is just one of the strategies to consider when thinking about how to increase the balance of your super fund.

#### *Read in this article*

 - [Updated eligibility rules of the Super Downsizer Scheme](https://sapience.com.au/blog/getting-more-money-into-your-super-when-selling-your-family-home#updated-eligibility-rules-of-the-super-downsizer-scheme)

- [What is the maximum amount I can contribute to super?](https://sapience.com.au/blog/getting-more-money-into-your-super-when-selling-your-family-home#what-is-the-maximum-amount-i-can-contribute-to-super)
- [The eligibility criteria:](https://sapience.com.au/blog/getting-more-money-into-your-super-when-selling-your-family-home#the-eligibility-criteria)

- [The practical issues:](https://sapience.com.au/blog/getting-more-money-into-your-super-when-selling-your-family-home#the-practical-issues)
- [What's in a name?](https://sapience.com.au/blog/getting-more-money-into-your-super-when-selling-your-family-home#whats-in-a-name)

- [Frequently Asked Questions: Downsizer Super Contributions](https://sapience.com.au/blog/getting-more-money-into-your-super-when-selling-your-family-home#frequently-asked-questions-downsizer-super-contributions)

    - [I'm 56 and selling my home; can I use this to bypass the $30,000 cap?](https://sapience.com.au/blog/getting-more-money-into-your-super-when-selling-your-family-home#im-56-and-selling-my-home-can-i-use-this-to-bypass-the-30-000-cap)

    - [Does a downsizer contribution affect my Age Pension eligibility?](https://sapience.com.au/blog/getting-more-money-into-your-super-when-selling-your-family-home#does-a-downsizer-contribution-affect-my-age-pension-eligibility)

    - [Do I have to buy a smaller house to be eligible?](https://sapience.com.au/blog/getting-more-money-into-your-super-when-selling-your-family-home#do-i-have-to-buy-a-smaller-house-to-be-eligible)

    - [What happens if I miss the 90-day deadline?](https://sapience.com.au/blog/getting-more-money-into-your-super-when-selling-your-family-home#what-happens-if-i-miss-the-90-day-deadline)

- [Sources & Further Reading](https://sapience.com.au/blog/getting-more-money-into-your-super-when-selling-your-family-home#sources-further-reading)

### Updated eligibility rules of the Super Downsizer Scheme

This year's cap on regular contributions of money going into your superannuation fund is set at $27,500

But new rules starting 1 January 2023 for the Government's Downsizer Scheme have lowered the minimum eligibility age to allow people aged 55 and over to make additional Downsizer Contributions into their super fund, when they sell their family home. ([Originally ](https://sapience.com.au/index.php?option=com_content&view=article&id=323:sell-the-family-home-and-contribute-to-your-super-fund&catid=83:blog&Itemid=734)the minimum age was 65, but this has progressively been lowered to age 55).

- This means eligible Australians selling their family home are able to make a one-off contribution of up to $300,000 per person into their super fund.

### What is the maximum amount I can contribute to super?

The current cap on the amount of standard contribution an individual can make into their super fund is up to $27,500 each year. These are contributions you have not paid any personal income tax on. They are called 'concessional contributions' because the concessional rate of tax paid on super is 15%.

- Downsizer contributions are excluded from the existing age test, work test, and the transfer balance threshold (but are limited by your transfer balance cap).
- For couples, both members of a couple can take advantage of the concession for the same home. That is, if you and your spouse meet the other criteria, both people can contribute up to $300,000 ($600,000 per couple). This is the case even if one of you did not have an ownership interest in the property that was sold (assuming they meet the other criteria).
- The proceeds of the sale of the family home contributed to superannuation under this contribution option count towards the Age Pension assets test and because a downsizer contribution can only be made once in a lifetime, it is important to ensure this contribution strategy is the right option for you.

### The eligibility criteria:

1. You are 55 years or older (from 1 January 2023) at the time of making the contribution.
2. The home was owned by you or your spouse for 10 years or more prior to the sale.
3. The home is in Australia and is not a caravan, houseboat, or mobile home.
4. You have not previously made a downsizer contribution to super from the sale of another home or from the part sale of your home.
5. The proceeds (capital gain or loss) from the sale of the home are either exempt or partially exempt from capital gains tax (CGT) under the main residence exemption or would be entitled to such an exemption if the home was a post-CGT asset rather than a pre-CGT asset (acquired before 20 September 1985).

### The practical issues:

1. The downsizer contribution is made within 90 days of receiving the proceeds of a sale, which is usually at the date of settlement.
2. You must provide your super fund with the prescribed form [Downsizer Contribution to Super](https://www.ato.gov.au/forms/downsizer-contribution-into-super-form/) form (NAT 75073) either before or at the time of making the downsizer contribution.

### What's in a name?

So the question we get asked a lot is, ‘Do I have to buy another smaller home?

**No.** The name of the scheme is misleading. To access this contribution option you do not have to buy another home once you have sold your existing home, and you are not required to buy a smaller home – you could buy a larger and more expensive one - and enjoy your retirement.

---

### Frequently Asked Questions: Downsizer Super Contributions

#### I'm 56 and selling my home; can I use this to bypass the $30,000 cap?

Yes. In the 2025-26 financial year, the $300,000 downsizer limit is completely separate from your annual $30,000 concessional cap and your $120,000 non-concessional cap. It is a "Cap Buster" designed to help you shift home equity into a tax-sheltered environment without being penalized by the standard contribution rules.

#### Does a downsizer contribution affect my Age Pension eligibility?

This is a critical trade-off. While your **principal place of residence** is generally exempt from the Assets Test, money inside your super is not once you reach Age Pension age (67). Moving $300,000 from an exempt home into an assessable super account may reduce or eliminate your pension. This is a "Sovereign" decision between receiving a government payment and having total control over a larger investment pool.

#### Do I have to buy a smaller house to be eligible?

No. The term "Downsizer" is actually a misnomer. The ATO does not require you to buy a smaller home, or even buy a new home at all. You could sell your home, move into a more expensive property, or move into a luxury rental. The rule only concerns the sale of the original property you owned for at least 10 years.

#### What happens if I miss the 90-day deadline?

The 90-day window is strictly enforced. If you miss it, the payment will be treated as a standard non-concessional contribution, which is subject to the **$120,000 annual limit** (or $360,000 bring-forward), and could trigger tax penalties if you exceed your caps. If delays occur at settlement, you must apply for an extension with the ATO *before* the 90 days expire.

*Disclaimer: Superannuation and tax rules are highly technical and subject to indexation. In 2026, the interaction between Downsizer contributions and the $2.1M Transfer Balance Cap requires specialized advice. For a strategic "Black and White" review of your retirement liquidity, we recommend a [confidential consultation](https://sapience.com.au/contact).*

---

### Sources & Further Reading

- Australian Taxation Office [Downsizer super contributions](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/how-to-save-more-in-your-super/downsizer-super-contributions)

**Do we sound like the type of people you'd like to do business with?**
 Call us today on 1300 137 403 or email us [here](https://sapience.com.au/index.php?Itemid=704) for a no-obligation private chat about your situation.

---

![author pic drew browne](https://sapience.com.au/images/author-pic/contact-drew-browne-advisor-sapience-financial.jpg)**Drew Browne** is a specialty Financial Risk Advisor working with Small Business Owners & their Families, Dual Income Professional Couples, and diverse families. He's an award-winning writer, speaker, financial adviser and business strategy mentor. His business Sapience Financial Group is committed to using business solutions for good in the community. In 2015 he was certified as a B Corp., and in 2017 was recognised in the inaugural Australian National Businesses of Tomorrow Awards. Today he advises Small Business Owners and their families, on how to protect themselves, from their businesses. He writes for successful Small Business Owners and Industry publications. You can read his Modern Small Business Leadership Blog [here](https://sapience.com.au/index.php?Itemid=1267). You can connect with him on [LinkedIn](https://www.linkedin.com/in/drewbrowne/).  Any information provided is general advice only and we have not considered your personal circumstances. Before making any decision on the basis of this advice you should consider if the advice is appropriate for you based on your particular circumstance.

![Written by Human Not made by AI sapience financial ](https://sapience.com.au/images/icons/not-made-by-AI-sapience-financial-black.png)

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