15 January 2026
HESTA 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 over $94 million in 2025, a more than 8% jump on the previous year’s record and 45% on figures recorded just two years ago.
The milestone was buoyed by a record month in December as proceeds from spring sales flowed through. This helped establish a new quarterly benchmark for the $100 billion Fund, with the December quarter figure up 24% on the prior year.
HESTA CEO Debby Blakey said the significant uptick in contributions reflected the increasing awareness and use of the downsizer scheme among eligible Australians looking to boost their retirement savings, which in turn could support a freeing up of critical 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," Ms 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.”
HESTA’s state-by-state contribution data revealed the strongest growth was in South Australia with a 60% spike, as downsizers in Adelaide in particular took the opportunity to sell in an otherwise low supply environment.
Double-digit percentage growth was also seen in New South Wales and Victoria, with downsizer contributions rising over 12% in NSW and 13% in Victoria.
Queensland’s downsizer contributions were down by 9% off last year’s record levels, while Western Australia was down around a quarter off a significant peak in 2024. Despite drops from 2024, the total contributions in 2025 were the second highest achieved in each state since the policy was introduced in 2018. The 2025 dip marries with broader market trends of lower supply in the respective state capitals.
Under the current downsizer policy, eligible individuals aged 55 and over can contribute up to $300,000 from their home sale 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 balance, and don't impact contribution caps.
Josh Parisotto, HESTA Chief Engagement and Growth Officer, explained that while there can be strong benefits for retirees – as well as the housing market – it's important to understand how downsizing might affect things like Age Pension eligibility, Centrelink benefits and future housing needs.
“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,” Mr Parisotto said.
Ends.
About HESTA
HESTA is one of the largest superannuation funds dedicated to Australia’s health and community services sector. An industry fund that's run only to benefit members, HESTA now has more than one million members (around 80% of whom are women) and currently manages approximately $101 billion* in assets invested around the world.
*Information is current as at the date of issue.
