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Ding Real Estate

Integrated Property Financial Advisory

For Downsizers

Downsizing Is a Financial Event,
Not Just a Property Move

The family home sale triggers the most complex financial restructure of your life. We model every dimension — super contributions, pension eligibility, asset allocation — before you list.

$300k Super StrategyAge Pension ModelingAsset Restructure Planning

Why Selling the Family Home Changes Everything

Your family home is likely your largest asset — and the one with the most complex financial implications when you sell it.

Asset Test Shift

Your home is exempt from the Age Pension assets test. The moment you sell, the proceeds become assessable assets. A $1.5M home sale can reduce or eliminate pension entitlements overnight.

Cash Flood Management

Suddenly holding $800k+ in cash after the new property purchase creates decisions: super, investments, cash, term deposits? Each option has different tax, pension, and estate implications.

Emotional + Financial

This is the home where you raised your family. The financial modelling must be right so you can make this decision with clarity, not anxiety.

Our Downsizer Advisory Framework

We model every scenario before you make any decisions.

The Downsizer Super Contribution

Up to $300,000 per person ($600,000 per couple) from the sale proceeds into super.

Eligibility Requirements

  • Age 55 or older at the time of contribution
  • The home must have been owned for 10+ years
  • It must have been your main residence at some point during ownership
  • The contribution must be made within 90 days of settlement (or longer with ATO extension)
  • You can only make one downsizer contribution in your lifetime
  • No total super balance cap (unlike concessional/non-concessional caps)
  • No work test requirement (unlike other super contributions for over-67s)

Why This Matters

Example: Couple, Both 68
Home sale proceeds$1,800,000
New home purchase$950,000
Remaining equity$850,000
Downsizer contribution (both)$600,000 → super
Remaining cash$250,000

That $600,000 in super earns income taxed at 15% (accumulation) or 0% (pension phase), compared to up to 45% if held personally. Over 20 years of retirement, this can mean hundreds of thousands in additional after-tax income.

Important: Total Super Balance Interaction

While the downsizer contribution itself has no total super balance cap, it DOES count towards your transfer balance cap ($1.9M) when moving to pension phase. If your super is already near or above $1.9M, the downsizer contribution may not be able to enter tax-free pension phase. We model this interaction precisely.

Age Pension Impact Modeling

Your home is an exempt asset. When you sell it, the financial landscape shifts dramatically.

The Age Pension is means-tested on both assets and income. Your family home (principal residence) is exempt from the assets test. When you sell and the proceeds become cash, investments, or super (if accessible), they become assessable. This can reduce or eliminate your pension entitlement.

Assets Test Thresholds (March 2025)

StatusFull Pension (up to)Part Pension (up to)
Single (homeowner)$314,000$686,250
Couple (homeowner)$470,000$1,031,000
Single (non-homeowner)$543,750$916,000
Couple (non-homeowner)$699,750$1,260,750

Thresholds as at 20 March 2025. Subject to change. Your new home (if purchased) is also an exempt asset. Only the surplus funds are assessable.

Scenario: Without Planning

Couple sells home for $1.5M, buys for $800k

Surplus: $700k held in bank

Total assessable assets: $700k + existing $350k = $1.05M

Result: Part pension significantly reduced

Scenario: With Our Planning

Same sale. $600k into super (downsizer contribution)

Super moved to account-based pension (not assessable until drawn)

Remaining $100k + existing assets restructured

Result: Higher pension entitlement + tax-free super income

Asset Restructure Planning

Where the surplus equity goes determines your retirement income for the next 20–30 years.

Superannuation (Downsizer Contribution)
Tax Treatment

15% accumulation / 0% pension

Pension Impact

Assessable as a financial asset (deeming rates apply)

Estate Planning

May be taxable to non-dependent beneficiaries

Best For

Maximise tax-free retirement income

Account-Based Pension
Tax Treatment

0% on earnings and withdrawals

Pension Impact

Assessable under assets and income tests

Estate Planning

Tax-free to dependant; up to 17% to non-dependant

Best For

Regular tax-free retirement income stream

Term Deposits / Cash
Tax Treatment

Interest taxed at marginal rate

Pension Impact

Fully assessable (deemed income applies)

Estate Planning

Simple estate distribution

Best For

Short-term holding or emergency reserve

Investment Portfolio
Tax Treatment

Dividends/gains taxed at marginal rate

Pension Impact

Assessable under both tests

Estate Planning

Subject to CGT for beneficiaries

Best For

Growth-oriented retirees not on pension

The optimal allocation is rarely one single option. We model a blended approach that balances tax efficiency, pension eligibility, liquidity needs, and estate planning objectives for your specific situation.

Lifestyle-Matched Property Search

The right next home balances lifestyle needs with financial optimisation.

What ASPIRE Intelligence™ Analyses

  • Low-maintenance properties (minimal garden, no pool, modern build)
  • Proximity to medical facilities, public transport, and amenities
  • Single-level or lift-access properties for aging in place
  • Strata communities with on-site maintenance
  • Properties in areas with stable or growing values
  • Suburbs with strong community infrastructure

Financial Factors in Property Selection

  • Purchase price that maximises surplus for super/investment
  • Strata levies and ongoing costs that fit your retirement budget
  • Properties that qualify as "principal residence" for pension test
  • Stamp duty impact (no FHB concessions, but consider pensioner exemptions)
  • Properties that support aging in place (avoid needing to move again in 5 years)

Frequently Asked Questions

Do I have to buy a cheaper property to be a "downsizer"?
No. The downsizer contribution is available regardless of what you buy next — or even if you choose to rent. The eligibility is based on selling a home you have owned for 10+ years. You could buy a property of equal or greater value and still make the contribution from the sale proceeds.
What if my super balance is already above $1.9 million?
You can still make a downsizer contribution regardless of your total super balance. However, amounts above the $1.9M transfer balance cap cannot move into pension phase (0% tax). They remain in accumulation phase (15% tax) — still better than marginal rates of up to 45%.
Does the downsizer contribution affect my Age Pension?
Yes. The contribution increases your super balance, which is assessed under the assets test (and deemed under the income test). However, the overall tax and income benefit typically outweighs the pension reduction. We model both scenarios so you can see the exact trade-off.
Can both my partner and I each contribute $300,000?
Yes, provided you both meet the eligibility criteria. You each need to be 55+ and have an ownership interest in the home. This allows up to $600,000 per couple from a single home sale.
What is the 90-day deadline for the downsizer contribution?
You must make the contribution within 90 days of receiving the sale proceeds (settlement). The ATO can grant extensions in certain circumstances, but you must apply before the deadline. We ensure the contribution is processed within the window.
Should we sell first and then buy, or buy first?
This depends on your cash position, whether you need bridging finance, and your risk tolerance. Selling first gives certainty on proceeds but means temporary accommodation. Buying first requires bridging finance but avoids moving twice. We model both timelines and their financial implications.

This Is the Biggest Financial Decision of Your Retirement

Book your Downsizing Financial Review. We will model the super contribution, pension impact, asset restructure, and property search — so you move forward with complete financial clarity.