You can put up to $300,000 per person (or $600,000 per couple) into super from selling your home, as long as the contribution doesn't exceed the home's sale proceeds and you meet eligibility (age 55+, one main residence, within 90 days of settlement). This is a one-off contribution, doesn't count towards normal caps, and can significantly boost retirement savings.
The maximum you can contribute is $300,000 or the sale price of your home, whichever is less. You may make more than one contribution, but the total must not exceed this maximum. You may contribute less than the maximum. Can my spouse contribute?
A downsizer contribution lets you put up to $300,000 from selling your home into your super – even if you've already retired. It's a one-time option that can turn the equity in your home into income in retirement.
Get to know the downsizer contribution rules to see if you meet the eligibility requirements . The big news is that from 1 January 2023 the eligibility was lowered from age 60 to age 55, and you can contribute up to $300,000 for singles and $600,000 for couples.
Understand how much you can contribute. There are limits on how much you can pay into your super fund each financial year without having to pay extra tax. These limits are called 'contribution caps'. You can contribute up to $120,000 each year in non-concessional contributions.
To retire on $70,000 a year in Australia, a single person typically needs around $800,000 - $1.1 million, while a couple might need about $700,000 - $1.1 million, depending on if you're single/couple, your age, and if you own your home outright, with estimates suggesting a balance of roughly $690,000 combined for couples and $595,000 for singles for a comfortable lifestyle. The exact amount varies, but expect figures in the $700k to over $1M range for a comfortable life, assuming you get the Age Pension and own your home.
You can add money to your super as a once-off payment or as regular payments. But there's a limit, called a contribution cap. In 2025–26 financial year, you can make up to $120,000 of non-concessional contributions. Check the bring-forward rules for a higher limit.
Downsizing Your Home? Don't Make These 10 Mistakes
While exact real-time figures vary, recent analyses suggest hundreds of thousands of Australians hold over $1 million in superannuation, though it's a minority, with estimates from around 2021 pointing to over 400,000 people, a number that has grown significantly due to investment returns, though many still don't reach this milestone. About 2.5% of the population held >$1 million in super as of mid-2021 (around 417,000 people), with forecasts indicating a larger number, while projections suggest over 10% of women and 15% of men retiring by 2060 could reach this goal, and recent studies highlight that a large majority (around 94%) of retirees don't hit $1 million.
The biggest retirement mistake is often failing to plan adequately, which includes underestimating expenses (especially healthcare), ignoring inflation's impact on purchasing power, not starting savings early enough to benefit from compound interest, and leaving retirement savings in the wrong place (like not converting super to a tax-free pension), leading to running out of money or living a constrained lifestyle. A lack of a clear budget, not understanding investment options, and neglecting lifestyle/purpose planning also rank high.
You can contribute up to $30,000 each year. These are contributions you have not paid any personal income tax on. They are called 'concessional contributions' because the concessional rate of tax paid on super is 15%. This is less than the lowest income tax rate of 16% (if you earn more than $18,200 per year).
Among the cities studied, downsizing was found to save homeowners a median of $177,000 over 10 years. The gains were significantly higher in some areas, particularly in expensive areas.
Yes, $600,000 can be enough to retire at 60 in Australia for many, especially if you're a single person aiming for a comfortable lifestyle, but it depends heavily on your spending, assets, and eligibility for the Age Pension. While some sources suggest $600k covers a single's comfortable retirement (around $52k-$53k/year), it's near the lower end, and couples might need closer to $700k for a similar standard, making financial planning crucial for a stress-free retirement.
The downsizing allowance, which can reduce inheritance tax (IHT), is little used but can prove valuable to homeowners who utilise it to its full advantage. The residential nil rate band (RNRB) allows an individual's residential property to be exempt from IHT if it's passed to direct descendants.
The transfer balance cap is the maximum amount that you can transfer from your accumulation account into your retirement account. Currently the transfer balance cap is $2 million. After you retire any amounts over the cap need to be transferred into an accumulation account or withdrawn taken out as a lump sum.
If you make multiple contributions to one or more super funds, you must provide a Downsizer contribution into super form for each contribution. The total of your contributions cannot exceed $300,000. Contributions must be made to your super fund within 90 days of receiving the proceeds of sale.
At age 60, the average Australian superannuation balance varies by gender, with recent data (around 2022-2025) showing men averaging roughly $350,000 - $400,000 and women averaging around $280,000 - $300,000, though figures differ slightly between sources like Wealthlab.com.au, AustralianSuper, and Brighter Super. These averages are for the 60-64 age bracket, with some data from ATO showing men around $359k and women $289k for ages 60-64.
This is as current as it gets. If you lower the bar to $1 million in retirement savings, only 2.5% of households cross that line. Among actual retirees, it's just 3.2%. So while the $2 million dream makes headlines, very few actually live it.
The short answer: to retire on $80,000 a year in Australia, you'll need a super balance of roughly between $700,000 and $1.4 million. It's a broad range, and that's because everyone's circumstances are different.
There's no right age to downsize your home. However, people tend to make this decision later in life, as their kids fly the nest and they're moving towards retirement. This is why planning for retirement as early as possible will enable you to explore new possibilities ahead.
The biggest things that devalue a house are location issues (bad crime, poor schools, noise), major structural/maintenance problems (roof, foundation), outdated kitchens/bathrooms, extreme personalization (bold colors, quirky decor), poor presentation/clutter, and legal issues (unpermitted work, zoning problems). These factors signal future costs and headaches, making buyers hesitant or drastically lowering their offers.
3 Areas to Tackle First When Downsizing
Think about how long you might live, your financial goals, and how inflation could affect your money. Talking to a financial advisor can help make this decision easier. Taxes are different for lump sums and monthly payments. Lump sums could mean higher taxes at once, while monthly payments spread out the tax burden.
You can contribute up to $300,000 for an individual or $600,000 for a couple. A downsizer contribution doesn't count towards the non-concessional (after-tax) contributions cap of $120,000 per financial year. This means, if you're eligible, you could give your super balance a big boost, without exceeding the cap.
Around 80,000 Australians had over $2 million in superannuation as of 2019-2020 data, with estimates suggesting this number might be higher now due to asset growth, potentially affecting around 80,000 people with balances over $3 million by 2025. While most with high balances are older, some young individuals (under 30) also hold over $2 million in super.