14 November 2025
HESTA is forecasting a record spring for downsizer contributions following a surge in activity earlier this year, as eligible Australians make the most of the opportunity to boost their retirement savings.
The Federal Government’s downsizer contribution scheme, introduced in July 2018 for Australians aged 65 and over, has generated nearly $25.3 billion in super contributions since inception. Following the reduction of the eligibility age to 60 in July 2022, and then to 55 in January 2023, the policy has become accessible to many more Australians. ATO data shows that approximately 15,800 downsizers contributed $4.165 billion to superannuation in 2024-25[1].
HESTA saw downsizer contributions increase by 44% from 2023 to 2024, with the spring selling season usually delivering the highest volume of contributions each year. Following new peaks being hit in February and March this year, the $100 billion fund expects downsizer contributions to reach fresh highs during the spring selling season.
HESTA CEO Debby Blakey said the surge in downsizer contributions reflected the evolving approaches to retirement planning. Since the policy was introduced in July 2018, the fund has seen downsizer contributions grow from $29.1 million in its first full year in 2019 to $89.5 million in 2024.
"We're seeing more members strategically using the downsizer contribution to strengthen their financial position in retirement,” Ms Blakey said.
"As we head into what is traditionally the most active period in the property market, we expect the momentum to build.
"The strong Autumn results suggest many Australians are recognising this as an opportunity to simultaneously unlock housing equity and boost their super in a tax-effective way. In doing so, it can help improve the flow of much-needed housing stock, particularly of family homes.
“While there is potentially great opportunity through the policy, we do recommend members seek advice before making any decisions as there are a number of considerations that can impact outcomes.”
"It's never too early or too late to start planning for retirement, and I encourage all our members to take advantage of the guidance and financial advice available to them as part of their HESTA membership. Small changes today can make a meaningful difference to retirement outcomes."
Under the policy, eligible individuals aged 55 and over can contribute up to $300,000 from their home sale into superannuation, with couples able to contribute up to $600,000 combined. These contributions can be made regardless of retirement status or existing super balance, and don't impact contribution caps [2].
Through the policy members can contribute even if they're retired or have a high balance[3], making it possibly the last opportunity for some to make a significant super contribution.
However, there are several considerations to weigh as the decision can impact various aspects of retirement planning, including Age Pension, Centrelink benefits and future housing needs.
While downsizer contributions are just one way to boost your super, there are various ways to help build your super balance. Seeking professional advice early can make a real difference, which is why HESTA and other funds provides members with access to financial advice at no extra cost. Tools like HESTA's Future Planner, which has been used by close to 300,000 members, can help people understand and plan for their retirement needs.
Additional commentary from Stockdale & Leggo CEO, Charlotte Pascoe:
“While we tend to see less seasonality across inner-city and outer-city markets in Victoria than we did pre-pandemic, spring remains a popular time for listings.
“However, people hoping to downsize who own larger family homes with backyards and outdoor areas will benefit from a spring selling campaign, when lawns are green and buyers can envision themselves living in the home.
“Housing affordability remains a significant issue in the current market, largely due to a lack of supply. By encouraging people to downsize, this policy will help free up homes for young families, making properties available for the next generation, which is a big positive for our industry and the community.”
[1] Downsizer super contributions data tables
[2] Downsizer super contributions – Eligibility requirement
Ends.