Downsizer Super Contribution Calculator AU

What this calculator works out

The downsizer super contribution lets eligible Australians aged 55 or over contribute up to $300,000 each ($600,000 per couple) from the sale of a long-held home into superannuation, without the contribution counting against the standard concessional ($30,000) or non-concessional ($120,000) caps. It is one of the few ways high-balance retirees can still add a large lump sum to super.

This calculator runs the five eligibility tests and then projects two downstream effects most retirees miss: the Total Super Balance (TSB) impact and the Centrelink Age Pension assets-test impact when the formerly exempt home value moves into super and bank accounts. It is a general-information tool — get personalised advice from a licensed financial adviser before contributing.

The formula and where the rates come from

// Eligibility — all must be true (ATO):
ageAtContribution      >= 55          // lowered from 60 on 1 January 2023
homeOwnershipYears     >= 10          // immediately before sale
qualifiesMRECgtExempt  == true        // even partly is enough
contributionMadeWithin <= 90 days     // of receiving sale proceeds
contributionAmount     <= $300,000    // per person
contributionAmount     <= salePortion // your share of proceeds
downsizerFormLodged    == true

// Per-couple cap:
combinedCap = isCouple && bothEligible ? min($600,000, saleProceeds)
                                       : individualCap

// Cash and assets after downsize:
cashRemaining  = saleProceeds − newHomeCost − combinedContribution
assessable     = combinedContribution + cashRemaining   // PPR exempt; super counts at Age Pension age

// Centrelink Age Pension impact (homeowner couple, 2025-26 indicative):
if assessable > $481,500 (lower threshold):
   excess           = assessable − $481,500
   reductionPerFn   = (excess / $1,000) × $3
   annualReduction  = reductionPerFn × 26

Eligibility and caps are set out on the ATO downsizer super contributions page and the MoneySmart guide. The Age Pension assets-test thresholds are published by Services Australia and are reviewed in March and September.

How to read the inputs

• Your age — at the time of the contribution, not at sale. Must be 55 or over (lowered from 60 on 1 January 2023).
• Years owned — combined ownership of you, your spouse or your former spouse counts. The home only needs to have been owned by one of you for the full 10 years.
• Net sale proceeds — sale price after agent commission and legal fees. The contribution cannot exceed your share of these proceeds.
• New home cost — what you paid for the smaller / cheaper / different replacement home, or 0 if renting.
• Days since sale — days between settlement and the planned contribution. Must be 90 or fewer (the ATO can extend in special cases — apply before the deadline).
• Couple toggle — both spouses contributing? Each must independently meet the 55+ test; the 10-year ownership test only needs to be met for the home overall.
• Spouse age — used to confirm spouse is also 55+.

Worked examples

1. Single retiree, $800,000 sale, $500,000 new unit. Age 60, owned 15 years, contribution within 30 days. Eligible → max $300,000 to super. Cash remaining = $800k − $500k − $300k = $0. New assessable assets = $300k.

2. Couple, $1.2M sale, $600k new unit, both 65+. Both eligible → combined $600,000 to super. Cash remaining = $0. New assessable assets = $600k. Indicative Age Pension reduction (couple homeowner) = ($600k − $481.5k) / $1k × $3 × 26 ≈ $9,243 per year less Age Pension.

3. Couple, $900k sale, no replacement home (renting), both 67. Combined $600,000 to super. Cash remaining = $300k. New assessable assets = $900k. Pension reduction ≈ ($900k − $481.5k) / $1k × $3 × 26 ≈ $32,643 per year less Age Pension — a very large Centrelink hit.

4. Sale proceeds below $300k. $250k sale → individual contribution capped at $250k (the lower of cap and proceeds).

5. Spouse only 50. Couple, but spouse fails age test → only the eligible spouse can contribute $300,000. Combined max = $300,000, not $600,000.

6. 9-year ownership. Owned only 9 years → fails ownership test → not eligible. The 10-year clock is strict and is measured immediately before sale (gaps in ownership do not reset it but mid-ownership renovations to a different house do not count).

7. Day 95 contribution. Contributing 95 days after settlement → fails the 90-day window. Ask the ATO for an extension as early as possible — extensions are case-by-case, not automatic.

Common pitfalls

• The age was 60 before 1 January 2023, then 55. Older articles still quote 60 — make sure you check the current rule before assuming you cannot contribute at 56.
• The 90-day clock starts at receipt of proceeds, not at contract date. Settlement day is usually the start. Bank delays are not a valid extension reason on their own.
• You can only use the downsizer rule once per person, per lifetime. A second sale later does not give a second $300,000.
• The home must qualify for the main residence CGT exemption (even partly). Pure investment properties never qualify. Mixed-use homes (e.g. short rental periods under the 6-year rule) usually still qualify.
• The downsizer contribution counts toward Total Super Balance. If your TSB after the contribution exceeds $1,900,000, you cannot use the bring-forward rule for future non-concessional contributions.
• Age Pension impact is real and immediate. The home is exempt from the assets test; super and cash are not (super counts once you reach Age Pension age). Many couples see a significant drop in Age Pension after downsizing.
• The downsizer form must be lodged with the fund before or with the contribution. Lodging it after the contribution arrives is too late and can re-characterise the contribution as a non-concessional one (potentially triggering excess tax).
• The home does not need to be sold for less than what you buy. The "downsizer" name is misleading — you can move to a more expensive home, a smaller home, or rent. The rule is about your age and ownership history, not the size of the next home.

Related calculators

• Super Non-Concessional Cap Calculator (AU) — your other route to add lump sums to super.
• Super Carry-Forward Cap Calculator (AU) — for unused concessional caps.
• Spouse Super Contribution Calculator (AU) — boost a spouse's super for a tax offset.
• Age Pension Calculator (AU) — full Age Pension projection with both income and assets tests.
• Super Minimum Pension Drawdown Calculator (AU) — minimum drawdowns once in pension phase.

Sources:

• ATO — Downsizer super contributions
• MoneySmart — Downsizer super contributions
• Services Australia — Assets test for Age Pension
• ATO — Total super balance
• Tax Laws Amendment (Reducing Pressure on Housing Affordability Measures) Act 2017