According to superannuation fund HESTA the milestone was buoyed by a record month in December as proceeds from spring sales flowed through.
Debby Blakey, CEO of Hesta, 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,” Blakey said.
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.
Figures from the ATO in September showed the level of downsizer contributions into superannuation had remained steady for the third consecutive year, with around 16,000 people adding more than $4 billion collectively to their retirement savings in 2024/25 under the scheme.
The regulator’s data in September indicated that 15,800 people made an average downsizer contribution of $263,600, with total contributions reaching $4.165 billion, as at 15 July, slightly down from last year’s figures of 16,900 individuals contributing $4.491 billion, but similar to 2022/23 when 15,900 people contributed $4.235 billion.
The ATO data revealed in September that since the downsizer scheme commenced in the 2019 financial year, 98,500 super fund members have made total contributions of $25.255 billion following the sale of an eligible home.
Although the eligibility age to be able to make a downsizer contribution was reduced from 65 to 55 in 2023, the ATO data shows that those of 65 years have been the primary cohort taking advantage of the scheme.
The figures show that in the years since the eligibility age was lowered, 2500 people aged 55 to 59 and 9100 people aged 60 to 64, or a total of 11,600 across a 10-year cohort, made a downsizer contribution compared to 10,600 aged 65 to 69, 9600 aged 70 to 74 and 9100 aged 75 to 79 making a contribution.
