Using this field
This field is used for reporting contributions made by an eligible member from the sale of an eligible dwelling in accordance with section 292–102 of the Income Tax Assessment Act 1997 (ITAA 1997). These are referred to as 'downsizer contributions'.
You should urge members to seek professional advice before they make a downsizer contribution.
What a downsizer contribution is
Downsizer contributions are contributions which you have received from members who have sold their eligible dwelling. The member must self-assess their own eligibility, which includes:
- the contract of sale was entered into on or after 1 July 2018
- the member has reached the eligible age (noting there is no maximum age limit) at the date of making the contribution; the eligible age is as follows
- from 1 January 2023, 55 years old or older
- from 1 July 2022, 60 years old or older
- from 1 July 2018, 65 years old or older
- the member satisfies both an ownership test and a main residence test
- the member made the contribution within 90 days from the time the change of ownership occurs (unless the Commissioner has granted an extension)
- the member has not previously made a downsizer contribution from the sale of any dwelling including multiple partial disposals of their ownership interest in the same dwelling.
Members may choose to make multiple contributions from the sale of one primary residence up to the maximum amount that they can contribute.
The maximum amount that an individual can contribute to all providers from the sale of the one home is the lesser of:
- $300,000; or
- the proceeds of the sale of the home, less any other downsizer contributions that have been made by the individual or a spouse.
For more information on the downsizer contributions, see:
- LCR 2018/9 Housing affordability measures: contributing the proceeds of downsizing to superannuation
- GN 2018/2 Downsizer contribution
Downsizer contribution into superannuation form
The member must supply the approved Downsizer contribution into super form to you when making a downsizer contribution. If you provide your own form for your members, it must include all the information that the approved form contains.
- The form must be completed in full, signed and provided by the member or the member's legal representative either before or at the time of contribution.
- If making multiple contributions from the sale of the one main residence, the member must complete a separate form for each contribution.
- You are obliged to check the validity of the form but only to the extent that it is possible and reasonable to do so.
Determining the validity of the contribution
The following are examples of questions that we expect you to ask to determine the validity of the contribution:
- Do you hold the member's TFN?
- Has the member reached eligible age?
- Was the form signed by the member or the member's legal representative either before or at the time of the contribution and given to you when the contribution was made?
- Does the form supplied by the member meet the requirements of the approved form?
- Was the contribution made by the member, or under the member's direction, as opposed to another person (such as an employer)?
No TFN
A downsizer contribution is a member contribution for the purposes of the contributions standards and so cannot be accepted if a valid TFN is not:
- on the Downsizer contribution into super form, or
- already held by you.
Ineligible downsizer contributions
Where a downsizer contribution is found to be ineligible , you will need to assess whether it can be accepted as a personal contribution under your fund acceptance rules and regulation 7.04 of the SISR.
If it is accepted as a personal contribution it should be reported as such. The amount will then count towards the members non-concessional contributions cap.
If you cannot accept the contribution you are required to return it to the member and it does not need to be reported as a contribution.