Downsizer contributions see record end-of-year uplift

Yasmine Raso

Senior Journalist, Financial Newswire

16 January 2026

Driven by particularly strong selling activity in South Australia, downsizer contributions grew by more than eight per cent in 2025 to reach a record total of over $94 million according to the latest data collated by industry super fund, HESTA.

A strong December quarter saw downsizer contributions made by HESTA members jump by more than 24 per cent from the previous year, setting a new quarterly record for the fund.

HESTA chief executive, Debby Blakey, welcomed the increase in contributions as a sign more Australians were leveraging the scheme to deliver a significant boost to their retirement savings.

“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,” she 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.”

The fund’s state-by-state breakdown confirmed South Australia recorded the strongest growth with a 60 per cent surge in downsizer contributions across 2025 from the year prior, with New South Wales and Victoria the only other two states to record double-digit growth of 12 and 13 per cent, respectively.

Despite a nine per cent drop in Queensland and 25 per cent in Western Australia from 2024’s record levels, total downsizer contributions in 2025 still managed to come in at second-highest since the scheme came into effect in 2018.

Josh Parisotto, HESTA’s Chief Engagement and Growth Officer, urged members to consider the effectiveness of downsizer contributions for them in the wider context of 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,” he said.