Quick Answer
Downsizer contributions let eligible Australians aged 55 or over contribute up to $300,000 each ($600,000 per couple) from the sale of their home into super, outside the usual contribution caps. The ATO reports 123,000 people have used the scheme since 2018, contributing $31.819 billion. For SMSF trustees and accountants, the practical work is making sure eligibility is met and audit evidence is on file before the contribution is accepted.
Who This Guide Is For
This guide is designed for:
- SMSF trustees aged 55 or over considering a downsizer contribution
- Accountants and tax agents advising clients on contribution strategy
- SMSF administrators processing contribution paperwork
- SMSF auditors checking eligibility evidence at year-end
If a member has sold or is about to sell their home and wants to contribute the proceeds to their SMSF, the eligibility and evidence points below should be checked before the contribution is accepted.
Why Downsizer Contributions Matter in 2026
The ATO SMSF newsroom published an update on 14 September 2026 highlighting the scale of the downsizer scheme: 123,000 individuals have made a downsizer contribution since it started in 2018, totalling $31.819 billion contributed to super funds.
The ATO’s message to trustees is direct: SMSF trustees should encourage members considering the sale of their home to check their eligibility before making the contribution. For SMSFs specifically, that means getting the paperwork and evidence right at the time the contribution is made, not scrambling to reconstruct it at audit time.
Downsizer Contribution Rules
Per the ATO’s downsizer super contributions guidance, a member must meet all of the following to be eligible:
| Rule | Requirement |
|---|---|
| Age | 55 years or older at the time of contribution |
| Ownership period | Home owned by the member and/or spouse for 10 or more years before sale |
| Contribution timing | Made within 90 days of receiving the sale proceeds (usually at settlement), unless the ATO grants an extension |
| Contribution cap | Up to $300,000 per individual, up to $600,000 per couple combined |
| Contribution caps | Does not count towards concessional or non-concessional contribution caps |
| One-time use | Cannot have made a downsizer contribution from a previous home sale or an earlier part-sale of the current home |
| Transfer balance cap | Counts towards the member’s transfer balance cap once it moves to retirement phase |
| Total super balance | Included in total super balance (TSB) at the end of the financial year |
Note: downsizer contributions are available to members of any complying super fund, not only SMSFs — but SMSF trustees carry the added responsibility of verifying and documenting eligibility themselves, since there is no external fund administrator checking it for them.
SMSF Audit Evidence for Downsizer Contributions
The ATO’s guidance focuses on member eligibility, not audit documentation. For an SMSF audit, the fund needs to hold objective evidence that every eligibility rule was actually met — not just that the trustee believed it was.
The audit file should usually include:
- The member’s downsizer contribution form (the approved ATO form, completed before or at the time of contribution)
- Settlement statement or contract of sale showing the sale price and settlement date
- Evidence of the 10-year ownership period (title search, rates notices, or purchase contract from the original acquisition)
- Proof of age at the time of contribution
- Bank records showing the contribution was received within 90 days of settlement, or a copy of any ATO extension granted
- A record confirming this is the member’s first downsizer contribution
- Trustee minutes acknowledging receipt and acceptance of the contribution
Common issues auditors see include contribution forms not completed or lodged, missing evidence of the 10-year ownership period (especially where the home changed ownership structure, such as a transfer between spouses), and contributions received outside the 90-day window with no extension on file. Trustees and accountants who gather this evidence at the time of the contribution, rather than at year-end, avoid most of these delays.
Need Help with a Downsizer Contribution for Your SMSF?
Mint Super Audits is an independent SMSF audit firm based in Melbourne, Victoria, providing SMSF audit services to trustees, accountants, tax agents, advisers and administrators across Australia.
If your fund is about to receive a downsizer contribution, we can help you confirm the evidence you need before it’s accepted, reducing avoidable audit delays down the track.
Book a free 30-minute discovery call with Mint Super Audits to discuss your SMSF audit requirements.
FAQs
Q: Who is eligible to make a downsizer contribution?
A: Anyone aged 55 or over at the time of contribution, who has owned their home (or their spouse has) for 10 or more years, and has not previously made a downsizer contribution from another home sale.
Q: How much can be contributed under the downsizer scheme?
A：Up to $300,000 per individual, or up to $600,000 combined for a couple, from the proceeds of selling their home.
Q: Do downsizer contributions count towards contribution caps?
A：No. Downsizer contributions do not count towards concessional or non-concessional contribution caps, but they do count towards the member’s transfer balance cap and total super balance.
Q: How long after selling a home can a downsizer contribution be made?
A: Within 90 days of receiving the sale proceeds, usually at settlement, unless the ATO grants an extension of time.
Q: Can a downsizer contribution be made more than once?
A: No. It is a once-only contribution per member — it cannot be made again from a later home sale or an earlier part-sale of the same home.
Q: What evidence does an SMSF auditor need for a downsizer contribution?
A: An auditor typically needs the completed downsizer contribution form, the settlement statement, evidence of the 10-year ownership period, proof of the member’s age, and bank records showing the contribution was made within the 90-day window.
Q: Is a downsizer contribution only available to SMSF members?
A: No. It is available to members of any complying super fund, not only SMSFs. SMSF trustees simply carry more responsibility for verifying and documenting eligibility themselves.
Official Sources
This article refers to guidance and updates from the following official sources:
- Australian Taxation Office — Downsizer contributions offer a valuable boost to retirement savings (SMSF newsroom, 14 September 2026)
- Australian Taxation Office — Downsizer super contributions (eligibility rules)
General Information Disclaimer
This article provides general information only and does not constitute financial, tax, legal or investment advice. SMSF trustees should seek advice from appropriately qualified professionals based on their specific circumstances.
