Downsize your home without downgrading your life.

Not automatically. Selling your principal home can change how Services Australia counts your assets and income. The part of the sale money you plan to use for another principal home may be left out of the assets test for up to 24 months. Some people may qualify for up to 12 more months. Money held in a financial asset can still be deemed to earn income, and extra sale money can be treated differently. Tell Services Australia about the sale within 14 days and ask how the rules apply to you before you commit.

Read the current Services Australia rules →

For a principal home sold from 1 January 2023, the part you intend to use to buy, build, rebuild, repair or renovate another principal home may be left out of the assets test for up to 24 months. The exemption can end earlier if you buy the next principal home or stop intending to use the money that way. The sale money may still count under the income test through deeming.

See the DSS sale-proceeds guide →

If you are 55 or older, you may be able to make a downsizer contribution of up to $300,000 if you meet the other ATO rules. The rules include ownership and main-residence tests, a 90-day time limit after settlement in most cases, and giving the correct form to your super fund before or when you contribute. You cannot use the measure again for a later property sale. Get personal tax and financial advice before settlement. If you are Age Pension age, money in super can also be counted in the pension means tests.

Check the current ATO downsizer rules →

Do not stop at the two property prices. Start with a sensible sale range, then subtract the loan payout, selling costs, the full next-property price, buying or entry costs, moving or storage costs and the cash you want to keep. Use the Downsizer Gap Planner as a starting estimate, then confirm the figures that need property, finance, legal, tax or pension advice.

There is no one answer. Selling first can show you exactly what you have to spend, but you may need temporary accommodation. Buying first can secure the next property, but it may leave you carrying two properties or accepting a rushed sale. Compare both plans using a lower sale result, realistic dates and a clear fallback before you sign.

Compare the full cost and pressure on both sides. Temporary accommodation may mean two moves, storage and rent. Buying first may mean bridging finance, two sets of property costs and a deadline to sell. A longer settlement or lined-up settlements may help in some cases, but finance and contract advice must be confirmed before you rely on them.

Not always. Add body corporate fees, rates, insurance, upkeep, special levies, service charges and future building work. A smaller property can still cost more each year if the building or ownership setup carries higher shared costs.

Start with what an ordinary week needs: stairs, parking, storage, pets, family visits, shops, medical care, transport, upkeep and travel. Then compare apartments, villas, townhouses, smaller freehold properties, retirement villages and land-lease communities by ownership, ongoing cost and exit rules.

Check the property, your daily life and the numbers together. Waiting may help if you need time to prepare or find the right next property. It may hurt if the upkeep, stairs, garden or location already make life harder. Use your reason, likely sale range, next-property cost and move options instead of trying to guess the perfect market.

The amount depends on the property, price, location and any concession you may qualify for. The Gap Planner includes a place for buying or entry costs, but it does not calculate your legal entitlement. Use a current official calculation and confirm the figure with your solicitor or conveyancer before you rely on it.