The level of downsizer contributions into superannuation has fallen for the second consecutive year, but the number of women using the scheme has continued to be higher than for men as has the amount of money added to their retirement savings over the past six years, according to new ATO data.
The figures released by the regulator, which are current as of 7 August, show that in the 2024 financial year, 13,000 people made a downsizer contribution, down from 15,700 in 2022/23 and the highpoint of 19,700 in 2021/22.
The ATO noted changes to legislation during the 2022 and 2023 financial years, which reduced the eligibility age initially from 65 to 60 and then to 55, were behind the rises in those years, and prior to that the number of people making contributions was 13,000 (2020/21), 10,700 (2019/20) and 6500 (2018/19).
In total, 78,600 people have made a downsizer contribution, worth $19.8 billion, since 2018, with the average contribution being $252,900.
According to the ATO data, women have consistently been greater users of the scheme since it commenced and represented 53.44 per cent of contributors in 2018/19, with that figure increasing to 57.37 per cent in 2023/24.
At the same time, their average contribution has increased from $241,000 to $262,000 from 2018/19 to 2023/24, and has been marginally greater than contributions by men across the past six years, which have increased from $239,000 to $259,000 over the same period.
The reduced eligibility age appears to have created more opportunities for women to use the downsizer scheme, with a numerical breakdown of contributions showing the gap between women and men expanding from 2021/22 onwards.
During the period from 2019 to 2021, there were around 1000 more women making contributions than men each year, but from 2021/22 that gap has continued to grow, with 10,600 women making a downsizer contribution compared to 9100 men in that year.
In 2022/23, 8900 women made a contribution compared to 6700 men and in the 2024 financial year, 7400 women made a contribution compared to 5500 men.
The ATO noted the figures for contributions were rounded to the nearest $100,000 and those reported for last year may increase as further information is received.
“Data for 2022/23 and earlier years are relatively settled. The 2023/24 data is subject to change as reporting by super funds of downsizer contributions is still ongoing,” it said.
