HESTA has recorded a landmark year for downsizer contributions, driven by strong spring property sales and a record December.
The $100 billion super fund has logged a record year for downsizer contributions, driven by a surge at the end of the 2025 spring selling season.
Downsizer contributions rose to more than $94 million in 2025, the fund said, representing an increase of more than 8 per cent on the previous year’s record and 45 per cent compared with figures recorded just two years earlier.
The result was buoyed by a record month in December as proceeds from spring property sales flowed through to superannuation. This established a new quarterly benchmark for the $100 billion fund, with the December quarter figure up 24 per cent on the prior year.
HESTA chief executive Debby Blakey said the significant uptick in contributions reflected growing awareness and use of the downsizer scheme among eligible Australians seeking to boost their retirement savings, while also potentially freeing up housing stock.
“We’re seeing more and more members using the downsizer contribution as part of their broader retirement strategy, helping them build stronger financial foundations for their future,” Blakey said.
“The exceptional results this spring and the record annual total show us that members are increasingly aware of how they can use this policy to both unlock their housing equity and boost their super in a tax-effective way.
“This approach can have the added benefit of helping free up larger homes for growing families. Among state capitals, Adelaide saw the most significant growth in downsizer activity last year despite an otherwise low supply market.
“We’ve also seen particularly strong downsizer activity in Melbourne and Sydney over the past year, which is a positive sign in cities where housing affordability has been particularly challenging for families.”
State-by-state data showed South Australia recorded the strongest growth, with a 60 per cent spike in downsizer contributions, as sellers in Adelaide took advantage of favourable conditions in a low supply environment.
Double-digit growth was also recorded in New South Wales and Victoria, where downsizer contributions rose by more than 12 per cent and 13 per cent respectively.
Queensland’s downsizer contributions fell by 9 per cent from last year’s record levels, while Western Australia declined by around a quarter following a significant peak in 2024.
Despite these declines, total contributions in 2025 were the second highest achieved in each state since the policy was introduced in 2018, aligning with broader trends of lower housing supply in state capitals.
Under the current downsizer policy, eligible individuals aged 55 and over can contribute up to $300,000 from the sale of their home into superannuation, with eligible couples able to contribute up to $600,000 combined.
These contributions can be made regardless of retirement status or existing super balances and do not count towards contribution caps.
HESTA chief engagement and growth officer Josh Parisotto said while downsizing can deliver benefits for retirees and the housing market, members should carefully consider the broader implications.
“Everyone’s circumstances are different, which is why we encourage all our members to take advantage of the guidance and financial advice available through their HESTA membership to support informed decisions that align with their retirement goals,” Parisotto said.
