This bill is currently before Parliament.
Government & democracy
Home sellers aged 50 and over could use the downsizer contributionMoney from selling a long-held home paid into super., down from age 55.
The explanatory memorandum says the bill aims to help older Australians move into smaller homes and release larger properties for younger families. It says 98,595 people had used downsizer contributions — payments into super from selling a long-held home — since 2018–19. The bill’s supporters also pointed to home-building costs rising by more than 20% and annual completions falling by more than 3,500. They said the higher contribution limit reflects rising house prices since the scheme began in 2017–18.
Australia already had a downsizer contributionMoney from selling a long-held home paid into super. scheme, introduced in 2017–18, allowing older homeowners to put sale proceeds into superannuationSavings set aside for retirement., and 98,595 people had used it since 2018–19. As larger homes remained out of reach for many younger families and house prices rose, Senator Jane Hume introduced this private senator’s bill to lower eligibility to 50, extend the contribution window from 90 days to 12 months and raise the cap to $500,000, while keeping participation voluntary.
The evidence pack does not contain criticism from an opposing speaker or party. Its two recorded speeches present the same case for the bill and do not include a competing view.
Senator Jane Hume introduced this bill. Supportive speeches so far have come from Liberal Party.
Did it become law?
Not yet
Final passage
No final vote yet
The bill has not yet completed passage through Parliament.
Days since introduction
314 days
Updated 06 Oct 2026.
Meaning
Home sellers aged 50 and over could use the downsizer contributionMoney from selling a long-held home paid into super., down from age 55.
Eligible home sellers would have 12 months after settlementThe day a property sale legally finishes. to contribute the sale proceeds, up from 90 days.
Eligible home sellers could put up to $500,000 into super from their sale proceeds, up from $300,000.
Homeowners would still need to have held the Australian property for at least 10 years.
People who have already made a downsizer contributionMoney from selling a long-held home paid into super. could not use the scheme again.
Participants could not contribute more than their home’s sale proceeds. Caravans, houseboats and other mobile homes would remain excluded.
Participants would still have the contribution counted towards the limit on super moved into retirement accounts. That limit was $2 million in 2025–26.
1 Paragraph 292‑102(1)(a) Omit “55 years”, substitute “50 years”.Unlocking Supply of Family Homes introduced text
2 Paragraph 292‑102(1)(g) Omit “90 days”, substitute “12 months”.Unlocking Supply of Family Homes introduced text
3 Paragraph 292‑102(3)(a) Omit “$300,000”, substitute “$500,000”.Unlocking Supply of Family Homes introduced text
To be eligible for a downsizer contribution, the other criteria as set out in section 292‑102 of the Income Tax Assessment Act, are applicable: the amount of the contribution cannot be greater than the sum of the proceeds of sale of the home; the contribution is exempt from capital gains tax under the main residence exemption (see subdivision 118‑B of the Act); the home is located in Australia and is not a caravan, houseboat or other mobile home; the person has not made a previous downsizer contribution under section 292‑102; and has held the property for at least 10 years.Unlocking Supply of Family Homes explanatory memorandum
To be eligible for a downsizer contribution, the other criteria as set out in section 292‑102 of the Income Tax Assessment Act, are applicable: the amount of the contribution cannot be greater than the sum of the proceeds of sale of the home; the contribution is exempt from capital gains tax under the main residence exemption (see subdivision 118‑B of the Act); the home is located in Australia and is not a caravan, houseboat or other mobile home; the person has not made a previous downsizer contribution under section 292‑102; and has held the property for at least 10 years.Unlocking Supply of Family Homes explanatory memorandum
To be eligible for a downsizer contribution, the other criteria as set out in section 292‑102 of the Income Tax Assessment Act, are applicable: the amount of the contribution cannot be greater than the sum of the proceeds of sale of the home; the contribution is exempt from capital gains tax under the main residence exemption (see subdivision 118‑B of the Act); the home is located in Australia and is not a caravan, houseboat or other mobile home; the person has not made a previous downsizer contribution under section 292‑102; and has held the property for at least 10 years.Unlocking Supply of Family Homes explanatory memorandum
As is currently the case, the downsizer contribution would continue to count towards a person’s transfer balance cap, which limits the total amount of superannuation which a person can transfer into their retirement phase. This cap applies when a person moves their superannuation savings into the retirement phase and is taken into account when determining a person’s eligibility for the age pension. For the 2025-26 financial year, the transfer balance cap was set at $2 million.Unlocking Supply of Family Homes explanatory memorandum
Context
Australia already had a downsizer contributionMoney from selling a long-held home paid into super. scheme, introduced in 2017–18, allowing older homeowners to put sale proceeds into superannuationSavings set aside for retirement., and 98,595 people had used it since 2018–19. As larger homes remained out of reach for many younger families and house prices rose, Senator Jane Hume introduced this private senator’s bill to lower eligibility to 50, extend the contribution window from 90 days to 12 months and raise the cap to $500,000, while keeping participation voluntary.
Downsizer contributions begin
The original Coalition measure let eligible older Australians contribute proceeds from selling a long-held family home to superannuationSavings set aside for retirement. without counting them towards annual contribution caps.
Second reading speech ↗Downsizer scheme reaches 98,595 users
Australian Taxation Office data cited in the explanatory memorandum showed that tens of thousands of people had used the scheme, supporting its continuation and expansion.
Unlocking Supply of Family Homes explanatory memorandum ↗Housing shortage leaves younger families priced out
Australian Financial Review reporting described larger homes being occupied by older Australians while younger families faced rising prices and limited access to suitable housing.
Australian Financial Review ↗Senator Jane Hume introduces the bill
Senator Jane Hume introduced the private senator’s bill to broaden downsizer eligibility, extend the contribution deadline to 12 months and increase the maximum contribution to $500,000.
Hansard ↗More households plan to downsize
Australian Financial Review reported that almost two million households planned to downsize within five years as no state reached its expected level of new home construction in the first year of a national building plan.
Australian Financial Review ↗Legislative route
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The bill reached this recorded parliamentary step.
Key criticism
The evidence pack does not contain criticism from an opposing speaker or party. Its two recorded speeches present the same case for the bill and do not include a competing view.
The bill’s supporter acknowledged that the proposal would not solve the housing crisis by itself. She described it as one measure intended to free up more family homes.
Further sources
Votes
No recorded votes have been found yet for this bill.
Parliamentary debate
Start here — lead voices
Askew supports the bill, arguing that broader downsizer contributionMoney from selling a long-held home paid into super. rules would encourage older Australians to move into more suitable homes, release family housing for younger buyers and strengthen retirement savings.
Read in Hansard ↗All speeches by bloc
1 speaker · 1 support
“This policy is a real win-win. It helps improve the availability of family style homes in the housing stock, which will be so welcomed by the thousands of young Australians wanting to buy a family home. And it will help bolster the retirement savings of older Australians, eventually providing a more comfortable retirement income, if and when they decide to downsize into a smaller home.”Read the full speech in Hansard ↗
Record
Senate · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Senate · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Senate · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
