Downsizer contributions topped $100 million for the first time in the 2026 financial year for HESTA members, with a surge in Australia’s two largest housing markets.
The Fund can reveal today that downsizer contributions jumped to $109.6 million in FY26, a 25% jump on the previous year’s record of $87.6m.
The landmark result was driven by record growth on the east coast, with Victorian members accounting for the largest share with downsizer contributions totally $38.4 million, up 70% on the previous year. New South Wales followed with $37 million in downsizer contributions, an increase of 41% from the previous year. Together the two states made up close to seven in every ten downsizer dollars contributed by HESTA members over the 2026 financial year.
HESTA CEO Debby Blakey said the new record was an indication of rising awareness of the downsizer scheme among eligible Australians looking to boost their retirement savings and a positive sign of activity toward freeing up critical stock of family homes.
“Passing $100 million in a single year and seeing the year-on-year growth tells us that the downsizer contribution is becoming a more common part of how our members plan for their retirement,” Ms Blakey said.
“Not only can this boost their super in a tax-effective way, every one of those decisions can free up a larger home for a growing family facing housing challenges – particularly in cities like Sydney and Melbourne where we’ve seen the strongest downsizing growth.”
HESTA’s state-by-state data showed the strongest percentage growth in Victoria, followed by New South Wales, Tasmania and South Australia. Queensland, Western Australia and the ACT eased back after stronger prior years.
Under the downsizer policy, eligible individuals aged 55 and over can contribute up to $300,000 from their home sale into their superannuation, with eligible couples able to contribute up to $600,000 combined. The contributions can be made regardless of retirement status or existing super balance, and don’t impact contribution caps.
Ms Blakey added that despite the potential for significant benefits, it was also important to understand how downsizing could affect Age Pension eligibility, Centrelink benefits and future housing needs.
“Adding to your super later in life can make an incredibly meaningful difference to your retirement, but it’s important to understand how it will work for you and your circumstances,” Ms Blakey said.
“We know there’s no one-size-fits-all retirement. This is why we encourage members to take advantage of the advice available through their HESTA membership to support informed decisions in their best interests.”
