Making downsizer contributions

Your client can make a downsizer contribution into their account if they’ve met certain eligibility criteria including:

• Your client is age 55 years or older at the time of the contribution
• The home was owned by your client or their spouse for 10 years or more before the sale
• The home is in Australia and is not a caravan, houseboat or other mobile home
• The proceeds from the sale are exempt or partially exempt from Capital Gains Tax (CGT) under the main residence exemption
• The downsizer contribution is made within 90 days (or a longer period if allowed by the ATO) of the sale (usually at the date of settlement)
• No previous downsizer contributions have been made to your client's super from the sale of another home or from the earlier partial sale of your client’s home
• The Downsizer contribution into super form (NAT 75073) is provided either before or at the time of making the downsizer contribution.

A downsizer contribution has its own cap. Your clients can contribute up to lesser of $300,000 or the total capital proceeds from the sale.

Your client can make a downsizer contribution into their Macquarie Wrap super account using direct debit. Complete the Direct debit request form and a Downsizer contribution into super form (NAT 75073) available at the ATO website and upload to Request Centre in Adviser Online.

Important: We must receive the completed form from you before we receive the funds. Any funds received prior to receiving the form cannot be classified as a Downsizer contribution by law.

We can't accept downsizer contributions via BPAY or direct credit.
 

Requesting an extension of the 90-day timeframe for the contribution

If your clients are unable to make the downsizer contribution within the 90-day timeframe from the point of sale of the property, they may be able to request an extension on this timeframe by contacting the ATO directly.

To understand how long it takes for a contribution to be processed, see our article on Cut-off and processing times for payments and transfer.

The contribution is recorded as received and in effect from the day it is debited, as long as the payment clears.

To ensure the payment can be processed, make sure the account can be direct debited from.

To understand how to amend a contribution, see our article Completing a deduction notice for personal super contributions.

You can view the cash transactions associated with your client’s Wrap accounts and any downsizer contribution your client has made in Adviser Online:

1. Log in to Adviser Online
2. Search for your client’s account name using the global search bar
3. Select their account name
4. Select Transactions from the list under the search bar
5. Select the Cash tab. You’ll see the cash transactions associated with your client’s Wrap account for the last 90 days
6. Select the Download icon to download the cash transactions in CSV format
7. Select the Print icon to generate and print the cash transactions report.