More Women Boost Super with Downsizer Contributions: How It Works

For Australians aged 55 and over, the downsizer contribution rules present a valuable opportunity to bolster their superannuation. These rules allow individuals to contribute up to $300,000 to their super from the proceeds of selling their home, providing greater flexibility in retirement planning.

Growing Trend Among Women

In 2023-24, over 57% of those making downsizer contributions were women, with an average contribution slightly higher than men’s—$262,000 compared to $259,000. This growing trend demonstrates that women are increasingly using this strategy to strengthen their superannuation balances and secure their financial future.

When and How Funds Can Be Accessed

The most common age group making downsizer contributions falls between 65 and 69 years old. After age 65, these contributions can be accessed from superannuation should your circumstances change, even if you continue working. For those aged between 55 and 64, access to these funds is generally restricted until reaching at least 60 and retiring.

Key Advantages of Downsizer Contributions

Downsizer contributions offer several advantages. They are excluded from the existing upper age test, the work test, and the total super balance rules, although the amount that can be transferred into a retirement pension remains subject to your transfer balance cap.

Couples can also benefit from the downsizer rules. Both partners can contribute up to $300,000 each ($600,000 per couple), even if only one spouse owned the property that was sold—provided the eligibility criteria are met.

Importantly, there is no requirement to purchase another home after selling your current property. You are free to buy a larger or more expensive home or choose not to buy another at all. As long as you have access to other funds, the downsizer contribution can still be made.

Speak to Us About Your Retirement Strategy

If you’re considering a downsizer contribution or want to learn more about how this could work for you, Modoras is here to help.