How to Make a Downsizer Contribution: Forms & 90-Day Rule

How to Make a Downsizer Contribution: Forms & 90-Day Rule

To make a downsizer contribution, you generally need to check you are eligible, contact your super fund, complete the downsizer contribution form, give the form to your fund before or when you contribute, and make the contribution within 90 days of receiving the sale proceeds.

That is the basic process.

But the order matters.

A downsizer contribution can allow eligible Australians aged 55 or over to contribute up to $300,000 from the sale of an eligible home into super. Couples may be able to contribute up to $600,000 combined, subject to the available capital proceeds.

If you miss the timing or provide the required form too late, the contribution may not be treated as a downsizer contribution.

For the full overview, read my guide to downsizer contributions to super.

The ATO explains the official process on its ATO downsizer contribution form and timing rules page.

Downsizer contribution process at a glance

Here is the simple version.

1. Check you meet the eligibility rules.
2. Confirm your maximum contribution.
3. Decide who will contribute if you are a couple.
4. Speak to your super fund before contributing.
5. Complete the downsizer contribution form and give it to your fund before or when you contribute.
6. Make the contribution within 90 days of receiving the sale proceeds.
7. Check that the contribution has been received and reported correctly.

I would not leave this until the last week.

Super funds have their own processing times. Banks have payment limits. Property settlements can be stressful.

Give yourself room.

Step 1: Check you are eligible

Before making the contribution, check that you meet the downsizer contribution rules.

At a high level, this includes:

• being aged 55 or older when you contribute
• meeting the 10 year ownership requirement
• selling an eligible Australian residential property
• meeting the main residence capital gains tax exemption condition
• not having previously used the downsizer contribution rule for an earlier qualifying disposal
• meeting the form and timing requirements

Do not assume you qualify just because you are over 55 and sold a home.

For a deeper explanation, read my guide to downsizer contribution eligibility.

Step 2: Confirm your maximum contribution

The maximum downsizer contribution is $300,000 per eligible person.

For couples, each eligible spouse may be able to contribute up to $300,000.

That means up to $600,000 combined.

But total downsizer contributions cannot exceed the eligible capital proceeds from the disposal.

For example, if a couple sells their home for $800,000, they may each be able to contribute up to $300,000.

If their eligible capital proceeds are $400,000, their combined downsizer contributions cannot exceed $400,000.

They might contribute $300,000 for one spouse and $100,000 for the other, assuming both are eligible.

The contribution does not have to consist of the exact dollars you receive at settlement.

Using some of the sale proceeds to repay a mortgage also does not automatically reduce the eligible capital proceeds used to work out your downsizer contribution limit.

I explain a simple example here: What's an example of a downsizer contribution?

I’ve also covered the contribution limit here: How much can I put into Super if I downsize?

Step 3: Decide who will contribute

For couples, the contribution does not always need to be split evenly.

One spouse may have a lower super balance, more transfer balance cap space, or a different Age Pension or estate planning position.

The right split depends on the broader retirement plan.

For more on those trade-offs, read my guide to downsizer contribution pros and cons.

Step 4: Speak to your super fund before contributing

Before sending money, speak to your super fund.

Ask them:

• Do you accept downsizer contributions?
• What payment methods do you accept?
• What reference or payment details should I use?
• Do I need an accumulation account?
• Can I make the contribution in multiple payments?
• How do I provide the downsizer contribution form?
• Do you already have my valid tax file number?
• How long will it take to process?
• How will the contribution be reported to the ATO?

A fund needs your valid tax file number before it can accept a downsizer contribution.

Your TFN may already be recorded on your account, or it may be provided as part of the contribution process.

A good strategy can still become messy if the fund does not receive the correct information or identify the payment correctly.

Step 5: Complete the form and give it to your fund

You generally need to complete the ATO downsizer contribution into super form.

The ATO form is called:

Downsizer contribution into super form, NAT 75073

Your super fund may also provide its own version of the form if it collects the information required by the ATO.

Check which form your fund wants you to use.

The important part is timing.

You need to give the required form to your super fund before or when you make the contribution.

Not after.

The form tells the fund that the payment should be treated as a downsizer contribution.

If the required information is not provided on time, the fund may not be able to treat the payment as a downsizer contribution. That can create problems if the amount is instead treated as another type of contribution.

If you make multiple downsizer contribution payments, you generally need a separate form for each payment.

For example, if you make one payment in May and another in June, you generally need a form for each contribution.

Check your fund's process before making the payments.

Step 6: Make the contribution within 90 days

You generally need to make the downsizer contribution within 90 days of receiving the sale proceeds.

In most ordinary property sales, this means 90 days from settlement rather than 90 days from signing the contract.

Do not wait until the last few days.

Bank transfer limits, fund processing delays, missing paperwork, and public holidays can all create problems.

I would treat the deadline as something to beat comfortably, not something to scrape through.

Can you get an extension of time?

You may be able to apply to the ATO for an extension if your circumstances warrant it.

The ATO says you should apply as soon as possible after receiving the sale proceeds, ideally within the 90 day period.

If the 90 day period has already passed, you should not make the contribution until the ATO approves the extension.

There is also an important limit.

An extension cannot be granted just so you can meet the age requirement.

For example, if you settle before turning 55 and the 90 day window ends before your 55th birthday, you generally cannot use an extension simply to wait until you are old enough.

That is a timing issue to check before settlement.

Step 7: Check the contribution was reported correctly

After you make the contribution, your fund reports the contribution information to the ATO.

The ATO says super funds, other than SMSFs, have 10 business days to report the contribution information.

You can then use ATO online services to check that the contribution has been recorded.

The contribution should display as:

Proceeds of primary residence disposal

If it does not display, or if it appears as a different type of contribution, contact your fund promptly.

An incorrectly reported contribution could create excess contribution issues or extra tax.

What if the contribution is invalid?

If the ATO becomes aware that your contribution does not meet the downsizer contribution eligibility requirements, it may tell your super fund.

Your fund then needs to assess whether the amount could have been accepted as another type of contribution under its normal acceptance rules.

If the contribution is accepted as an after tax personal contribution, it may count towards your non concessional contribution cap.

If it cannot be accepted, the fund may return the contribution to you.

Penalties may also apply if you incorrectly declare that you are eligible.

That is why the eligibility declaration should be taken seriously.

Can you make the contribution in multiple payments?

Yes, it may be possible to make downsizer contributions in multiple payments.

But each payment still needs to meet the rules.

You generally need a separate downsizer contribution form for each payment, and all payments need to be made within the 90 day period unless you have an approved extension.

Multiple payments can work, but check your fund's process before contributing.

Should you contribute before or after buying your next home?

There is no single right sequence.

Some people buy their next home first and then contribute leftover funds into super. Others may contribute before purchasing again.

The important point is to understand how much money you still need outside super for your next home, transaction costs, renovations, moving costs, emergencies, aged care, and normal living expenses.

Age Pension and transfer balance cap issues may also affect the decision.

For a broader discussion, read my guide to downsizer contribution pros and cons.

Practical checklist before settlement

Before settlement, consider doing the following:

• Confirm you meet the downsizer contribution rules.
• Check the 10 year ownership requirement.
• Check whether the sale qualifies for the main residence CGT exemption, fully or partly.
• Decide whether one spouse or both spouses may contribute.
• Estimate how much you may want to contribute.
• Speak to your super fund.
• Confirm the fund can accept downsizer contributions.
• Check that the fund has your valid TFN.
• Ask how to lodge the form.
• Ask what payment method and reference to use.
• Consider the Age Pension impact.
• Consider transfer balance cap issues if you are already in pension phase.
• Consider whether you need financial or tax advice.

You do not need every detail finalised before settlement.

But you should know the broad plan.

Practical checklist after settlement

After settlement:

• Confirm when the sale proceeds were received.
• Calculate the 90 day deadline.
• Complete the downsizer contribution form.
• Give the form to your fund before or when contributing.
• Make the contribution using the fund's required payment method.
• Make sure each payment has its own form if you make multiple contributions.
• Keep records of the contribution and form.
• Check that the payment has arrived.
• Check ATO online services after the fund reports the contribution.
• Confirm it displays as proceeds of primary residence disposal.
• Contact the fund quickly if it appears incorrectly.

The paperwork is not complicated.

But getting it right keeps the strategy clean.

Common mistakes when making a downsizer contribution

Mistake 1: Assuming you can fix the form later

The form should be given to the fund before or when the contribution is made.

Do not assume you can contribute first and sort the paperwork out afterwards.

Mistake 2: Leaving the contribution too close to the deadline

The deadline is generally 90 days.

That does not mean day 89 is a good plan.

Leave time for bank transfers, fund processing, and any issues that need to be fixed.

Mistake 3: Misunderstanding the contribution limit

Each eligible person may contribute up to $300,000, but the combined amount cannot exceed the eligible capital proceeds.

The contribution does not need to consist of the exact cash received at settlement, and repaying a mortgage does not automatically reduce the eligible capital proceeds.

Final thoughts

Making a downsizer contribution is not particularly complicated, but the timing and paperwork are precise.

Check eligibility, confirm how much you can contribute, speak to your fund, provide the required form on time, contribute within 90 days, and then check that the contribution has been reported correctly.

If you already have an account based pension, there are extra questions about where the contribution goes next. Read my guide to downsizer contributions in pension phase.

If you want help with the downsizer contribution process and how it fits into your broader retirement plan, learn more about my retirement planning and superannuation advice services.

FAQs

How long do you have to make a downsizer contribution?

You generally need to make the downsizer contribution within 90 days of receiving the sale proceeds, which is usually the settlement date.

What form do I need for a downsizer contribution?

You generally need to give your super fund the ATO downsizer contribution into super form before or when you make the contribution.

Can I get an extension for a downsizer contribution?

You may be able to apply to the ATO for an extension if your circumstances warrant it, but an extension cannot be granted just so you can meet the age requirement.

Can I make a downsizer contribution in multiple payments?

Yes, you may be able to make a downsizer contribution in multiple payments, but you generally need to complete a separate downsizer contribution form for each payment.