Downsizer in-specie contributions confirmed by ATO

April 29, 2021

The ATO has confirmed that an individual can make a downsizer super contribution as an in-specie (ie non-cash) contribution, provided that the other eligibility criteria are satisfied.

Provided the downsizer eligibility criteria is met, the ATO said there is no need to analyse how the contribution is funded, provided it does not exceed $300,000 or the total capital proceeds from the sale of the qualifying dwelling.

This means that an individual can make a downsizer contribution as an in-specie contribution (eg an off-market transfer of listed shares), provided the value of the asset is equal to all or part of the proceeds from the disposal of the qualifying dwelling. The contribution also needs to be accompanied by the Downsizer contribution into super form.