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Downsizers hit an almost $95m payday in 2025, according to one of the nation\u2019s biggest super funds HESTA.<\/p>\n
Australia is believed to have just had a record year of home downsizing, with one of the nation\u2019s biggest super funds revealing unprecedented activity in 2025. <\/p>\n
HESTA data shows there was a 9 per cent increase in the number of Aussies topping up their superannuation funds under the federal government\u2019s Downsizer Super Contributions scheme last year.<\/p>\n
But the scheme, which encourages empty nesters to sell homes bigger than they need, is still getting low take up according to a leading economist who believes there are two ways to encourage more to take the step: a strong housing market, and axing stamp duty.<\/p>\n
RELATED: Housing shortfall to add $300k to home dream<\/a><\/p>\n Full list: 4793 Aussie suburbs you should buy into now<\/a><\/p>\n Affordable Aussie suburb gifting $100k to young homebuyers<\/a><\/p>\n HESTA figures on the scheme\u2019s impact revealed some states had bigger jumps than others, with South Australia surging 68 per cent and both Victoria and NSW rising 12 per cent. <\/p>\n The result was extra contributions at $9.8m in South Australia, $29.5m in Victoria and $31.2m in NSW. <\/p>\n However numbers declined by 9 per cent in Queensland and 25 per cent Western Australia, though both were at their second highest level since the super contribution scheme came into effect in 2018.<\/p>\n The scheme allows eligible people aged 55 and over to put up to $300,000 from a home sale into their superannuation, though couples can make a $600,000 deposit, without impacting contribution caps from other incomes.<\/p>\n Downsizing Australians hit record levels in 2025, according to one of the nation\u2019s biggest super funds.<\/p>\n Given it requires you live in the home for 10 years prior to using the scheme and can only be used once, it\u2019s likely most of the homes being sold were family homes.<\/p>\n HESTA chief executive Debby Blakey said it was likely higher use of the scheme reflected increasing awareness of it, and that their data alone showed it would have helped hundreds of Australian families upsize last year.<\/p>\n \u201cThe exceptional results this spring and the record annual total show us that members are<\/p>\n increasingly aware of how they can use this policy to both unlock their housing equity and<\/p>\n boost their super in a tax-effective way,\u201d Ms Blakey said.<\/p>\n \u201cThis approach can have the added benefit of helping free up larger homes for growing<\/p>\n families.\u201d<\/p>\n HESTA chief executive Debby Blakey says rising awareness would be a factor in rising use of the nation\u2019s Downsizer Super Contributions scheme.<\/p>\n HESTA currently manages about $100bn in assets globally and is one of Australia\u2019s biggest super fund providers. <\/p>\n AMP chief economist Shane Oliver said while an increase in Australians using the scheme would have helped release underused family homes to those needing the space, the numbers at a national level were still relatively low. <\/p>\n Mr Oliver said the increase in use seen in HESTA\u2019s data would likely reflect both rising awareness, and the strength of the Australian property market in 2025. <\/p>\n \u201cA lot of the headlines last year were also about record house prices in many cities, and a bit of a recovery in Melbourne,\u201d he said. <\/p>\n There was a similar peak recorded by HESTA in 2021, during another market boom, followed by declining figures in the following years as interest rates rose and the market slowed, suggesting higher uptake of the scheme required a strong housing market. <\/p>\n The HESTA data shows the millions of dollars being put into super by downsizers in 2025.<\/p>\n \u201cWhen you are at that point in life you are more likely to take advantage of strong market conditions,\u201d Mr Oliver said.<\/p>\n \u201cBut you don\u2019t want it too strong, as if they think it will remain strong, they might hang in there.\u201d<\/p>\n In terms of boosting numbers, he said the best move for the government would be to swap stamp duty to a broadbased land tax as it would remove a major barrier for many who might otherwise sell. <\/p>\n Downsizer Super Contributions Since 2018<\/p>\n 2018 \u2014 $5,162,319<\/p>\n 2019 \u2014 $28,667,182<\/p>\n 2020 \u2014 $29,365,499<\/p>\n 2021 \u2014 $79,352,021<\/p>\n 2022 \u2014 $77,488,603<\/p>\n 2023 \u2014 $65,144,800<\/p>\n 2024 \u2014 $87,586,999<\/p>\n 2025 \u2014 $94,721,229<\/p>\n Source: HESTA<\/p>\n Sign up to the Herald Sun Weekly Real Estate Update. Click here <\/a>to get the latest Victorian property market news delivered direct to your inbox.<\/p>\n MORE: Aussie households face triple threat of bill hikes in 2026<\/a><\/p>\n Victorian family who lived in train after bushfire list unique home for sale<\/a><\/p>\n<\/p>\n
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