Reduction in eligibility age for downsizer super contributions

The eligibility age for downsizer super contributions has been reduced to 55, with effect from 1 January 2023. The measure was implemented by the Treasury Laws Amendment (2022 Measures No 2) Act 2022. People previously needed to be 60 or older to be eligible. There is no maximum age limit.

The maximum downsizer contribution is $300,000 per contributor (ie $600,000 for a couple), although the entire contribution must come from the capital proceeds of the sale price. A downsizer contribution must also be made within 90 days after the home changes ownership (generally the date of settlement).