The total dollar value of contributions has also dropped from a high of $5.048 billion in 2021–22 to $3.382 billion in the latest period.

A downsizer contribution is a personal super contribution but doesn’t count towards a member’s non-concessional contribution cap and is reflected in the total superannuation balance when it is next calculated (on 30 June).

The age for those eligible to make downsizer contributions was lowered in the 2022–23 financial year to 55 years and older, and members can contribute up to $300,000 from the proceeds of the sale (or part sale) of their home into their super fund.

The downsizer super data for 2023–24 was current as of 7 August 2024 and is subject to change as reporting by super funds of downsizer contributions is still ongoing.

According to the data, NSW has the highest percentage of people using downsizing contributions with an average contribution of $264,000 from 4,300 members, down from 6,400 individuals in 2021–22. Victoria averaged $255,000 while Queensland was the next highest at $243,000.

There was a rise in the number of people aged 55-59 using downsizer contributions which has doubled since its introduction in 2022–23 from 400 to 800. For other age brackets that number has decreased, especially in the 65-69-year demographic which has more than halved from 6,800 in 2021–22 to 2,800 in 2023–24.

Surprisingly, there was also an increase in the oldest age bracket of 95 years and over with the data revealing that in 2023–24, 40 people made downsizer contributions compared to 35 in 2021–22.

More women than men also use the strategy with women making up 57 per cent of those who took the option compared to 42 per cent of men. The total value of their contributions was relatively equal, with women putting on average $262,000 into the super and men $259,000.

Michael Hallinan, special counsel for SUPERCentral, said downsizer contributions have two significant advantages and one significant drawback.

“The advantages are that downsizer contributions can be made at any age above age 55 – including age 95 or more. Secondly, downsizer contributions are not subject to the normal cap on non-deductible personal contributions of currently $120,000 per year,” Hallinan said.

“The drawback is that if the downsizer contribution is sourced from the cash proceeds of the sale of the current home then, so far as the Centrelink assets test is concerned, value has been moved from an exempt asset (the current home) to a counted asset (being the superannuation balance).”