Downsizer contributions hit $109.6 million in FY26
HESTA says downsizer contributions from its members topped $100 million for the first time in the 2026 financial year, reaching $109.6 million.
That total was 25% higher than the previous record of $87.6 million in FY25. The fund linked the rise to stronger activity in Australia’s two largest housing markets.
Victorian members accounted for the biggest share, with $38.4 million in downsizer contributions in FY26. That was up 70% on the previous year.
New South Wales followed with $37 million, an increase of 41%. Together, Victoria and NSW made up close to seven in every 10 downsizer dollars contributed by HESTA members over the year.
East coast states led the increase
HESTA chief executive Debby Blakey said the result pointed to rising awareness of the downsizer scheme among eligible Australians who want to lift their retirement savings.
“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.
She also linked the trend to housing supply, saying downsizing can release larger homes for families. Ms Blakey pointed to Sydney and Melbourne as the cities with 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. Meanwhile, Queensland, Western Australia and the ACT eased back after stronger prior years.
Under the downsizer policy, eligible people aged 55 and over can contribute up to $300,000 from the sale of their home into super. Eligible couples can contribute up to $600,000 combined.
Those contributions can be made regardless of retirement status or existing super balance. They also do not affect contribution caps, according to HESTA.
However, Ms Blakey warned that people should also consider 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.
HESTA encouraged members to use the advice available through their membership when weighing a sale and a downsizer contribution. The fund did not disclose how many members made downsizer contributions in FY26.
HESTA is one of the largest superannuation funds dedicated to Australia’s health and community services sector. It released the figures on 28 August 2026.
