The number and size of downsizer contributions into superannuation have remained constant, but more women are taking advantage of the scheme.
The level of downsizer contributions into superannuation has remained steady for the third consecutive year, with around 16,000 people adding more than $4 billion collectively to their retirement savings in 2024/25 under the scheme.
New data released today by the ATO showed 15,800 people made an average downsizer contribution of $263,600, with total contributions reaching $4.165 billion, as at 15 July, slightly down from last year’s figures of 16,900 individuals contributing $4.491 billion, but similar to 2022/23 when 15,900 people contributed $4.235 billion.
The ATO noted downsizer contribution information was reported by superannuation funds and the data for 2023/24 and earlier financial years was settled, while the information for the current year will be subject to change as reporting of downsizer contributions was still ongoing.
Since the downsizer scheme commenced in the 2019 financial year, 98,500 super fund members have made total contributions of $25.255 billion following the sale of an eligible home and the member being allowed to contribute up to $300,000 from the proceeds of the sale.
While the eligibility age to make a downsizer contribution was reduced from 65 to 55 during the 2023 financial year, super fund members aged 65 and older have been the main group taking advantage of the ability to boost their balances without impacting their non-concessional contribution cap.
In the three years since the eligibility age was lowered, 2500 people aged 55 to 59 and 9100 people aged 60 to 64, or a total of 11,600 across a 10-year cohort, made a downsizer contribution compared to 10,600 aged 65 to 69, 9600 aged 70 to 74 and 9100 aged 75 to 79 making a contribution.
At the same time, 8230 people aged over 80 made a downsizer contribution, including 700 people aged 90 to 94 and 130 people aged over 95.
The ATO data also highlighted that women have been greater users of downsizer contributions compared to men and in the first four years they were available (from 2018/19 to 2021/22), around 46 per cent of contributions were made by men and 54 per cent by women.
However, since the reduction in the eligibility age in the 2023 financial year, that ratio has shifted with 43 per cent of contributions made by men and 57 per cent made by women.
Since the downsizer contribution scheme commenced in 2018/19, a total of 43,900 men have made a contribution in comparison to 54,700 women, with the average amount added to super varying little between males and females, but steadily rising from around $240,000 in that year to around $264,500 in 2024/25.
