--- title: Downsizer Super Contributions and the Main Residence Exemption description: Downsizer super contributions can boost retirement savings, but strict rules apply. Learn who qualifies, timing requirements and common traps to avoid. image: https://insights.wlm.com.au/hubfs/Downsizer%20Contributions%20and%20the%20Main%20Residence%20Exemption.png --- [![WLM_Logo_RGB_Orn50](https://insights.wlm.com.au/hs-fs/hubfs/WLM_Logo_RGB_Orn50.png?width=521&height=169&name=WLM_Logo_RGB_Orn50.png "WLM_Logo_RGB_Orn50")](http://wlm.com.au/) - [About](https://www.wlm.com.au/about/) - [Services](https://www.wlm.com.au/services/) - [Tax & Compliance](https://www.wlm.com.au/services/tax-and-compliance/) - [Strategy & Advice](https://www.wlm.com.au/services/strategy-and-advice/) - [Clients](https://www.wlm.com.au/clients/) - [Construction & Trades](https://www.wlm.com.au/clients/construction/) - [Family Business](https://www.wlm.com.au/clients/family-business/) - [Insurance & Financial Services](https://www.wlm.com.au/clients/insurance-and-financial-services/) - [Renewable Energy & Environment](https://www.wlm.com.au/clients/renewable-energy-and-environment/) - [Service-based & Other Business](https://www.wlm.com.au/clients/service-based-and-other-business/) - [Insights & Case Studies](https://insights.wlm.com.au/blog) - [Blog](https://insights.wlm.com.au/blog) - [Buying a property with a business partner](https://explore.wlm.com.au/buying_a_property_with_a_business_partner_download) - [How to minimise tax & risk with business structure](https://explore.wlm.com.au/business-structure-whitepaper-download) - [Contact](https://www.wlm.com.au/contact/) [Login](https://clientlogin-us2.karbonhq.com/4Frhz6cPZq6r) - [About](https://www.wlm.com.au/about/) - [Services](https://www.wlm.com.au/services/) - [Tax & Compliance](https://www.wlm.com.au/services/tax-and-compliance/) - [Strategy & Advice](https://www.wlm.com.au/services/strategy-and-advice/) - [Clients](https://www.wlm.com.au/clients/) - [Construction & Trades](https://www.wlm.com.au/clients/construction/) - [Family Business](https://www.wlm.com.au/clients/family-business/) - [Insurance & Financial Services](https://www.wlm.com.au/clients/insurance-and-financial-services/) - [Renewable Energy & Environment](https://www.wlm.com.au/clients/renewable-energy-and-environment/) - [Service-based & Other Business](https://www.wlm.com.au/clients/service-based-and-other-business/) - [Insights & Case Studies](https://insights.wlm.com.au/blog) - [Blog](https://insights.wlm.com.au/blog) - [Buying a property with a business partner](https://explore.wlm.com.au/buying_a_property_with_a_business_partner_download) - [How to minimise tax & risk with business structure](https://explore.wlm.com.au/business-structure-whitepaper-download) - [Contact](https://www.wlm.com.au/contact/) # News, views and more ![Amanda Rogers](https://insights.wlm.com.au/blog/Amanda%20Rogers) **Amanda Rogers** 06 February 2026 — 3 min read ### Share [mailto:?subject=Downsizer%20Super%20Contributions%20and%20the%20Main%20Residence%20Exemption&body=https://insights.wlm.com.au/blog/downsizer-contributions-and-the-main-residence-exemption](mailto:?subject=Downsizer%20Super%20Contributions%20and%20the%20Main%20Residence%20Exemption&body=https://insights.wlm.com.au/blog/downsizer-contributions-and-the-main-residence-exemption) [mailto:?subject=Downsizer%20Super%20Contributions%20and%20the%20Main%20Residence%20Exemption&body=https://insights.wlm.com.au/blog/downsizer-contributions-and-the-main-residence-exemption](mailto:?subject=Downsizer%20Super%20Contributions%20and%20the%20Main%20Residence%20Exemption&body=https://insights.wlm.com.au/blog/downsizer-contributions-and-the-main-residence-exemption) ![Downsizer Contributions and the Main Residence Exemption](https://insights.wlm.com.au/hubfs/Downsizer%20Contributions%20and%20the%20Main%20Residence%20Exemption.png) ## Downsizer Super Contributions and the Main Residence Exemption When clients sell a long-held family home, they may be able to channel part of the proceeds into superannuation by using the downsizer contribution rules. ### Basic Eligibility Conditions To qualify, the seller must meet a number of conditions: - They must have reached the eligible age of 55 years (at the time of making the contribution). - The eligible dwelling must be located in Australia and have been owned for at least 10 years. - The disposal of the dwelling must be exempt from CGT under the main residence exemption to some extent (full exemption not required). - The contribution must be made within 90 days of settlement, and an election form must be lodged with the fund no later than when the contribution is received. The downsizer contribution can only be used once per individual and is limited to the lesser of the gross sale proceeds or $300,000 per person.   ### Does the Sale Need to be Fully CGT-exempt? A common question is whether the sale must be fully exempt as the main residence. Importantly, a full exemption is not required. Even if only part of the capital gain is exempt under main residence rules, the property may still qualify — provided all other conditions are met.   ### Is the Property Required to be the Main Residence at Sale? Equally important: the property does not need to be the seller’s principal residence at the time of sale. Living in the property for some years and renting it out later does not disqualify it, as long as the ownership and residence history supports at least a partial main residence exemption.   ### Special Rules for Pre-CGT Properties Where a property was acquired before CGT began, the rules look at whether part of the gain would have been disregarded had CGT applied. A key requirement is that there is a dwelling that qualifies as the main residence. Disposal of vacant land will generally not satisfy the test and therefore will not meet downsizer requirements.   ### Eligibility of a Non-Owning Spouse It is common for only one spouse to be listed on the property title. A non-owning spouse may still qualify for a downsizer contribution if all other requirements are met, apart from ownership. However, a spouse who never lived in the property and could not reasonably have treated it as their main residence is unlikely to be eligible.   ### Preservation and Access to Funds A downsizer contribution is subject to the standard preservation rules. Once contributed, the amount cannot be accessed until: - You reach preservation age (60) and retire, or - You reach age 65, regardless of retirement status. Consider future cash-flow needs before making the contribution.   ### Before you Contribute Although seemingly straightforward, downsizer contributions involve several nuances. Please contact us if you have any questions. Related links: - [Downsizer super contributions](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/how-to-save-more-in-your-super/downsizer-super-contributions) - [Downsizer contributions and capital gains tax](https://www.ato.gov.au/forms-and-instructions/guide-to-capital-gains-tax-2025/about-capital-gains-tax/real-estate-and-main-residence#ato-Downsizercontributionsandcapitalgainstax)   ### WLM can help Downsizer contributions can be a valuable way to boost super later in life, but eligibility hinges on timing, ownership history and how the property qualifies under the main residence rules. 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