The eligibility age for people to make downsizer contributions to their superannuation has officially expanded to include those aged 55.

Treasurer Jim Chalmers said this means more Australians can now boost their retirement savings if they downsize their house when their children move out. 

“Expansion of the downsizer scheme allows more Australians to use the equity they’ve built up in their homes to plan for retirement,” Chalmers said. 

The new rule officially commenced at the start of 2023. 

Additionally, the government hopes the downsizer scheme can help free up housing stock for young families and individuals looking to buy a home.

Before today, people needed to be 60 or older to be eligible for the scheme. 

Single Australians aged 55 and above can now contribute $300,000 to their superannuation account from the proceeds of the sale of a home. 

A couple aged 55 and above can make a total contribution of up to $600,000 from the sale of their home, with each spouse contributing up to $300,000.