In 2025, a staggering $95 million was realized through the downsizer scheme, as reported by HESTA, one of Australia’s largest superannuation funds. This year marked a significant milestone for home downsizing across the nation, with HESTA showcasing record-breaking activity that has piqued interest among many Australians.
According to the data from HESTA, there was a notable 9% rise in the number of individuals enhancing their superannuation contributions under the federal government’s Downsizer Super Contributions program in the previous year. This initiative is designed to motivate older homeowners—specifically those whose children have moved out—to sell larger homes that may no longer meet their needs. However, despite this increase, a leading economist pointed out that the overall uptake of the scheme remains relatively low. To boost participation, he suggested two key factors: a robust housing market and the elimination of stamp duty.
The HESTA report indicates varying levels of engagement across different states, with South Australia experiencing an impressive 68% surge in participation, while both Victoria and New South Wales saw increases of 12%. The contributions amounted to $9.8 million in South Australia, $29.5 million in Victoria, and $31.2 million in New South Wales. In contrast, Queensland and Western Australia witnessed declines of 9% and 25%, respectively, although both states recorded their second-highest participation rates since the inception of the super contribution scheme in 2018.
Eligible participants, aged 55 and above, can contribute up to $300,000 from the sale of their homes into their superannuation funds, with couples allowed to deposit up to $600,000 without affecting their contribution limits based on other income sources. Given the requirement to live in the home for at least ten years prior to utilizing the scheme, it’s likely that most of the properties sold are family residences.
Debby Blakey, the CEO of HESTA, noted that the increased utilization of the scheme can be attributed to a growing awareness among members. She emphasized that the data suggests hundreds of Australian families benefited from the ability to upsize last year, saying, "The exceptional results this spring and the record annual total demonstrate that members are becoming increasingly conscious of how they can utilize this policy to unlock their housing equity while enhancing their super in a tax-effective manner."
Moreover, she added, “This approach can also help free up larger homes for families looking to grow.”
Despite the promising results, AMP’s chief economist, Shane Oliver, cautioned that even with more Australians engaging with the scheme, the national figures still reflect a limited level of participation. He believes the uptick observed in HESTA’s data correlates with greater awareness and the robust condition of the Australian property market in 2025.
“Last year's headlines were dominated by record house prices in numerous cities and a recovery in Melbourne,” he explained. Notably, a similar peak in utilization occurred in 2021 during another property boom, followed by decreased engagement in subsequent years as interest rates rose and the market cooled, indicating that a strong housing market is essential for higher participation in the scheme.
Oliver further stated, “When you reach a certain stage in life, you’re more inclined to take advantage of favorable market conditions. However, if the market appears too stable, some individuals may hesitate to sell, believing that the situation will remain favorable.”
To effectively increase participation, he proposed that the government consider replacing stamp duty with a broad-based land tax, which could alleviate a significant hurdle for those contemplating selling their homes.
Here's a summary of the financial contributions made through the Downsizer Super Contributions scheme since its launch in 2018:
- 2018 — $5,162,319
- 2019 — $28,667,182
- 2020 — $29,365,499
- 2021 — $79,352,021
- 2022 — $77,488,603
- 2023 — $65,144,800
- 2024 — $87,586,999
- 2025 — $94,721,229
Source: HESTA
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