Downsizer contributions allow eligible Australians aged 60 years or over to make a one-off, post-tax contribution of up to $300,000 from the proceeds of selling their principal residence into their superannuation fund. As of December 2025, this is a valuable consideration for many Melbourne homeowners looking to right-size.
Currently in Melbourne, particularly within the Eastern Suburbs where we see many established family homes being sold, downsizer contributions are becoming increasingly common. The process involves selling your primary residence and then making the contribution within 90 days of settlement. It’s important to note that eligibility criteria apply, including owning the property for at least 10 years. Many sellers in areas like Balwyn and Doncaster are utilising this strategy, often after realising the equity in their larger properties. The contribution doesn’t count towards your usual concessional or non-concessional contribution caps. Fletchers’ experience shows that understanding the timing of settlement is crucial, as it directly impacts your ability to meet the 90-day window. In 2026, we anticipate continued interest in this strategy as more homeowners consider the benefits. From 1 July 2027, the eligibility age will reduce to 55, potentially broadening the number of eligible sellers.
Downsizer contributions offer a tax-effective way to boost your superannuation balance when selling a long-held family home.