From 1 July 2018, regardless of your ability to otherwise make super contributions, you may be eligible to make a contribution using the proceeds of sale from your home.
Without this measure, people over 65 who have stopped working, people over 75 and people who have more than $1.6 million in super would normally not be eligible to make any further contributions to super.
Who Can Make a Downsizer Contribution?
The downsizer contribution allows a contribution to be made for anybody over the age of 65 who sells a home that was owned by themselves or their spouse for 10 years or more prior to the sale and that was their main residence for at least part of the ownership period. The term "downsizer" is somewhat misleading as there is no requirement for a new home to be purchased and you could in fact buy a larger house and still be eligible.
The downsizer contribution can only be used in relation to one home sale per person (even if you used less than the maximum contribution amount previously).
What is the Maximum Downsizer Contribution Allowed?
If eligible, you can make a downsizer contribution of up to $300,000 per person BUT the contribution amount cannot be greater than the total proceeds of the sale of your home.
The downsizer contribution does not count towards the non-concessional contributions cap and can still be made even if you are retired or have a total super balance over $1.6 million.
What other conditions do I need to meet?
The amount you are contributing must be from the proceeds of selling your home where the contract of sale was exchanged on or after 1 July 2018.
You must also provide your Super Fund with a completed downsizer contribution form either before or at the time of making the contribution and you must make the contribution within 90 days of receiving the proceeds of sale.