Downsizer Contribution Calculator Australia โ FY 2025-26
Check your eligibility, calculate the super boost from a downsizer contribution, and estimate the impact on your Age Pension.
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How to Use This Calculator
Tab "Eligibility Check"
Enter your age, years of property ownership, sale price, and the amount you wish to contribute (up to $300,000). Select whether your partner is also contributing. The calculator checks eligibility requirements and shows the maximum contribution available for you and your partner.
Tab "Super Boost"
See how a downsizer contribution grows your retirement savings. Enter your current super balance, downsizer amount, expected return, and years to drawdown. The calculator projects extra retirement savings, annual drawdown income, and compares to keeping the proceeds in a bank account.
Tab "Age Pension Impact"
Understand how moving home sale proceeds into super affects your Age Pension. Enter your downsizer amount, total assets, homeowner status, and single/couple status. The calculator estimates pension reduction under the assets test, since your home (exempt) becomes super (assessed).
The Formulas
Age ≥ 55 AND ownership ≥ 10 years AND principal residence
Max contribution:
Per person = min($300,000, sale proceeds)
Couple = $300,000 × 2 = $600,000
Tax on contribution:
Nil โ no tax on downsizer contributions going into super
Cap impact:
Does NOT count toward concessional ($30K) or non-concessional ($120K) caps
DOES count toward transfer balance cap ($1.9M) when moved to pension phase
Assets test taper (Age Pension):
Pension reduction = (Assets above threshold / $1,000) × $3 per fortnight
Assets-free areas (FY 2025-26):
Single homeowner: $301,750
Single non-homeowner: $543,750
Couple homeowner: $451,500
Couple non-homeowner: $693,500
Downsizer contributions are governed by Division 313 of the Income Tax Assessment Act 1997. The property must have been your principal residence (or partial CGT main residence exemption applies). You must contribute within 90 days of settlement. This is a lifetime limit โ one contribution from one qualifying home sale per person.
Example
Margaret โ Retired teacher in Melbourne, age 68
Margaret and her husband sell their family home of 30 years for $1,100,000. Margaret's current super balance is $250,000. She plans to contribute $300,000 as a downsizer contribution.
Margaret's $300,000 downsizer contribution does not affect her concessional or non-concessional caps. No work test is required. Her super balance grows from $250,000 to $550,000. However, the $300,000 (previously exempt as part of her home) is now an assessable asset for the Age Pension, which may reduce her pension entitlement.
Downsizer Contribution Key Rules
| Rule | Detail |
|---|---|
| Maximum contribution | $300,000 per person ($600,000 couple) |
| Minimum age | 55 years old |
| Minimum ownership | 10 years (you or your spouse) |
| Property type | Principal residence (or partial CGT exemption) |
| Contribution deadline | 90 days after settlement |
| Lifetime limit | One qualifying home sale per person |
| Work test | Not required |
| TSB restriction | None |
| Cap impact | Does not count toward CC or NCC caps |
| Transfer balance cap | Counts when moved to pension phase ($1.9M) |
| Tax on contribution | Nil |