Persona · Last reviewed 2026-05-01
Downsizing, on your terms.
Sell the family home, buy something smaller, contribute up to $300K each into super under the downsizer rules. CGT exempt where main residence applies.
Selling a home you've held as your principal place of residence for decades is one of the few moves in the Australian tax system that is mostly tax-exempt. The main residence exemption (ITAA 1997 s118-110) covers the entire capital gain where the dwelling has been your main residence throughout. Partial exemption applies where it was your main residence for only part of the holding period.
Once you're 55+ and have held the home for at least 10 years, the downsizer contribution rules let each member of a couple contribute up to $300,000 of the sale proceeds into super (that's $600,000 combined) without it counting against your contribution caps. The contribution must land in super within 90 days of settlement.
What we model: CGT scenarios with main-residence and 6-year-rule treatment, downsizer-contribution headroom, the cashflow position of buying smaller (with stamp duty on the new purchase), and the long-hold position if you keep an investment portion of the proceeds.
What we won't model: anything that requires a licensed financial advisor. Pension impacts, age pension means tests, and SMSF contribution strategy land outside our remit.
Typical position
- Capacity
- Self-funded. Depends on sale proceeds and super.
- Deposit
- Often cash purchase from sale proceeds
- Horizon
- Buy within 3 to 6 months of sale settling
Informational. Not financial advice. Your specific position depends on your full income / debt / dependants picture — run the calculators with your numbers.
Calculators that fit
- Capital gains tax calculator
Main residence, 6-year rule, partner split.
- Stamp duty calculator
Cost of buying smaller in your target state.
Guides that go deeper
- Capital gains tax when selling property
Cost base, 50% discount, main residence exemption.
- CGT 6-year rule Australia
Useful if the home was rented during a temporary move.
Terms in this persona
Other personas
- First home buyer using the Home Guarantee Scheme
- First investment property buyer
- Buyer's agent client
- SMSF property investor
- Multi-property portfolio investor
- Regional + lifestyle-migration buyer
- Interstate investor
- Off-the-plan buyer
- Existing borrower refinancing
- Divorce or relationship-settlement buyer
- Australian expat returning home
- Deceased estate inheritor
- Owner-occupier upgrader (second home)
Open the playbook — 11 chapters end-to-end, every threshold cited.