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 ATO 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 proceeds of an eligible home into super. Couples may be able to contribute up to $600,000 combined, subject to the sale proceeds.

But if you miss the timing or lodge the form incorrectly, the contribution may not be treated as a downsizer contribution.

That can create problems.

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.

Key takeaways

• You should check eligibility before making a downsizer contribution.
• You should contact your super fund before contributing to confirm it can accept downsizer contributions.
• You generally need to complete the ATO downsizer contribution into super form.
• You need to give the form to your super fund before or when you make the contribution.
• If you make multiple payments, you generally need a separate form for each payment.
• You generally need to contribute within 90 days of receiving the sale proceeds.
• The 90 day period usually starts from settlement.
• You may be able to apply to the ATO for an extension where your circumstances warrant it.
• An extension cannot be granted just so you can meet the age requirement.
• After contributing, you should check that the contribution has been reported correctly.

Downsizer contribution process at a glance

Here is the simple version.

1. Check you meet the downsizer contribution eligibility rules.
2. Speak to your super fund before contributing.
3. Confirm your fund can accept downsizer contributions.
4. Open an account if needed.
5. Complete the ATO downsizer contribution into super form.
6. Give the form to your super fund before or when you contribute.
7. Make the contribution within 90 days of receiving the sale proceeds.
8. Check that the fund reports the contribution correctly.
9. Contact the fund quickly if the contribution appears incorrectly.

That is the clean process.

In practice, 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. Paperwork can get missed.

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, you generally need to meet these conditions:

• You are aged 55 or older at the time you make the contribution.
• Your home was owned by you, your spouse, or both of you for at least 10 years before the sale.
• The home is a residential building in Australia.
• The property is not a caravan, houseboat, or mobile home.
• The sale qualifies for the main residence capital gains tax exemption, either fully or partly.
• You have not previously made a downsizer contribution from another home or part sale.
• You provide the downsizer contribution form to your super fund before or when you contribute.
• You make the contribution within 90 days of receiving the sale proceeds, unless the ATO grants an extension.

Eligibility is the first step.

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 how much you can contribute

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 the total downsizer contributions cannot exceed the sale proceeds.

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

But if a couple sells their home for $400,000, their total combined downsizer contributions cannot exceed $400,000.

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

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, it is worth thinking carefully about who should make the contribution.

It does not always need to be split evenly.

You might consider:

• each person’s current super balance
• whether one spouse has more transfer balance cap space
• Age Pension or Centrelink impact
• estate planning goals
• taxable and tax free components of super
• future contribution flexibility
• how much cash each person needs outside super

For example, if one spouse has a much lower super balance, it may make sense to contribute more to that spouse.

But that is not automatic.

The best split depends on the broader plan.

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?
• How long will it take to process?
• How will the contribution be reported to the ATO?

This step is simple, but important.

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

Step 5: Complete the ATO downsizer contribution form

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

The ATO form is called:

Downsizer contribution into super form, NAT 75073

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

Not after.

That timing matters because the form tells the fund that the payment should be treated as a downsizer contribution.

If the fund does not receive the form before or when you contribute, it may not be able to report the payment as a downsizer contribution.

That can create excess contribution issues if the contribution is treated as a different type of contribution.

Step 6: Give the form to your fund before or when contributing

This is worth repeating.

You need to give the form to your super fund before or at the time you make the contribution.

Do not treat the form as something to tidy up later.

If you are making multiple downsizer contributions, you generally need to complete a form for each payment.

For example, if you make one payment to your fund in May and another in June, you may need a separate form for each contribution.

Check with your fund before doing this.

Step 7: Make the contribution within 90 days

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

In most cases, that means 90 days from settlement.

This is one of the most important rules.

If settlement occurs on 1 August, you should work from that date unless you have a specific reason to confirm otherwise.

Do not wait until the last few days.

Bank transfer limits, fund processing delays, missing forms, and public holidays can all create headaches.

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 of time 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 passed, you should not make the contribution until the ATO approves the extension.

There is a very 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.

What happens after you make the contribution?

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 received and recorded.

The ATO says the contribution should display as:

Proceeds of primary residence disposal

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

This matters because an incorrectly reported contribution could lead to 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 contribution could have been accepted as another type of contribution under its acceptance rules.

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

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

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

That is why it is important to check the rules before signing the form.

The form is not just admin.

It is a declaration.

Can you make the contribution in multiple payments?

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

But be careful.

If you make your downsizer contribution in multiple payments, the ATO says you need to complete a form for each one.

You also need to ensure all contribution payments are made within 90 days of receiving the sale proceeds, unless you have an approved extension.

This is another reason to speak to your fund before contributing.

Multiple payments can work, but they need to be handled properly.

Should you contribute before or after buying your next home?

This depends on your situation.

Some people sell their home, buy another property, then contribute some of the leftover funds into super.

Others may contribute before purchasing again.

There is no single right answer.

But you need to be careful with cash flow.

Before contributing, ask:

• How much do I need for my next home?
• Do I need money for stamp duty or transaction costs?
• Do I need funds for renovations, furniture, or moving costs?
• What emergency cash should I keep outside super?
• Could I need aged care funds soon?
• Will the contribution affect my Age Pension?
• How will this interact with my transfer balance cap?

Super can be a great structure.

But your housing and cash flow needs come first.

Does the 90 day rule make planning harder?

It can.

Selling a home is already stressful.

You may be dealing with settlement, moving, buying another property, family decisions, estate planning, tax questions, and super paperwork at the same time.

The 90 day rule adds pressure.

That is why I would start the process early.

Ideally, before settlement.

At a minimum, you want to know:

• whether you are eligible
• how much you plan to contribute
• which fund will receive the money
• whether the fund can accept the contribution
• what form needs to be completed
• how the contribution will be paid
• whether advice is needed before contributing

You do not want to be figuring this out at the last minute.

Practical checklist before settlement

Before settlement, consider doing the following:

• Confirm whether 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 of the sale proceeds you may want to contribute.
• Speak to your super fund.
• Confirm the fund can accept downsizer contributions.
• 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 in or near pension phase.
• Consider whether you need financial or tax advice.

This does not mean everything needs to be final before settlement.

But you should know the broad plan.

Practical checklist after settlement

After settlement, consider doing the following:

• Confirm the settlement date and when sale proceeds were received.
• Calculate the 90 day deadline.
• Complete the ATO downsizer contribution form.
• Give the form to your fund before or when contributing.
• Make the contribution using the fund’s required payment method.
• Confirm each contribution has a matching downsizer contribution form if you made multiple payments.
• 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.

This is boring admin.

But boring admin is often what keeps a good 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 now and sort the paperwork out later.

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, processing, fund queries, and mistakes.

Mistake 3: Forgetting the sale proceeds cap

Each eligible person may contribute up to $300,000, but the total contribution cannot exceed the sale proceeds.

A couple selling for $450,000 cannot contribute $600,000.

Mistake 4: Assuming both spouses should contribute equally

A 50 50 split is simple, but not always best.

The right split may depend on balances, transfer balance cap space, Age Pension impact, and estate planning.

Mistake 5: Ignoring Age Pension impact

Selling your home and contributing to super may affect Age Pension or other income support payments.

If Centrelink matters to you, check before contributing.

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

Mistake 6: Not checking pension phase issues

If you already have an account based pension, the contribution will usually need to go into accumulation first.

You then need to consider whether some or all of the money can move into pension phase.

For more detail, read my guide to downsizer contributions in pension phase.

Simple example

Anne and Michael sell their home for $850,000.

They are both over 55 and meet the eligibility rules.

They decide to contribute $300,000 each into super.

Before contributing, they contact their super funds and confirm both funds can accept downsizer contributions.

They complete the ATO downsizer contribution forms and provide them to the funds before making the payments.

They make the contributions within 90 days of settlement.

After the contributions are processed, they check ATO online services to make sure the contributions have been reported correctly.

That is the clean version.

The key is not just making the contribution.

It is making sure the contribution is accepted and reported correctly.

Final thoughts

The downsizer contribution process is not complicated, but it is precise.

Check eligibility first.

Speak to your fund.

Complete the ATO form.

Give the form to the fund before or when you contribute.

Make the contribution within 90 days of receiving the sale proceeds.

Then check that the contribution has been reported correctly.

That might sound like a lot of steps, but most of it is straightforward if you start early.

The problems usually happen when people leave it too late, assume the form can be fixed later, or contribute without understanding the Age Pension, transfer balance cap, or cash flow impact.

A good strategy should not rely on luck.

It should be clean from the start.

If you want help with the downsizer contribution process and making sure it fits your broader 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.