HESTA data reveals estimated payback date for $95m abatement scheme by 2025

ocopd 2026年1月15日

0 10 3 minutes read

HESTA data reveals estimated payback date for m abatement scheme by 2025

Downstream has reached an estimated payout date of around $95m by 2025, according to the country’s largest financial institution HESTA.

Australia is believed to have just had a record year of housing demolitions, with one of the country’s biggest economies set to hit unprecedented levels in 2025.

But a government program aimed at encouraging empty nesters to sell larger homes than they need is still getting little take-up according to a leading economist who believes there are two ways to encourage more to take action: a strong housing market, and axing stamp duty.

HESTA data shows a 9 per cent increase in the number of Aussies topping up their superannuation under the federal government’s Downsizer Super Contributions scheme last year.

RELATED: Housing shortage to add $300k to dream home

Full list: 4793 Aussie places to shop now

Affordable Aussie suburb offering $100k to new home buyers

There were even bigger jumps in other states, with South Australia up 68 per cent and Victoria and NSW up 12 per cent.

The result was additional contributions of $9.8m in South Australia, $29.5m in Victoria and $31.2m in NSW.

However, numbers fell by 9 per cent in Queensland and 25 per cent in Western Australia, although both were the second highest since the donation scheme came into effect in 2018.

The scheme allows eligible people aged 55 and over to put up to $300,000 from the sale of a house into their pension, although couples can make a deposit of $600,000, without affecting caps on contributions from other incomes.

Happy Senior Couple Hugging In Front Of Real Estate Sign And House.

Australia’s downsizing is set to hit record levels by 2025, according to the country’s biggest fund.

Given that it requires you to live in the home for 10 years before using the program and can only be used once, it is likely that most of the homes for sale were single-family homes.

HESTA’s chief executive, Debby Blakey, said the program’s high uptake reflects growing awareness of it, and that their data alone shows it could have helped hundreds of Australian families grow last year.

“The good results this spring and the overall record of the year show us that the members are like that

more and more people know how to use this policy to unlock their home equity once and for all

increase their power in a way that pays taxes,” said Ms. Blakey.

“This approach would have the added benefit of helping to free up larger homes for growth

families.”

Debby Blakey HESTA CEO - herald sun real estate

HESTA’s CEO, Debby Blakey, says that raising awareness can be the reason for the increase in the use of the national Downsizer Super Contributions program.

HESTA currently manages approximately $100bn in assets globally and is one of Australia’s largest fund providers.

AMP chief economist Shane Oliver said while more Australians using the scheme could help free up underutilized family homes for those in need, the numbers at a national level were still very low.

Mr Oliver said the increase in usage seen in the HESTA data could reflect both increased awareness, and potential for the Australian property market by 2025.

“A lot of the headlines last year were about house prices in many cities, and the slow recovery in Melbourne,” he said.

There was a similar peak recorded by HESTA in 2021, during the growth of the market, followed by a decrease in the figures in the following years as interest rates rose and the market fell, suggesting the high adoption of the program requires a strong housing market.

HESTA downsizer 2025 - state by state - for herald sun real estate

HESTA data shows millions of dollars being invested in elites by 2025.

“When you’re at that stage in life you’re likely to take advantage of strong market conditions,” Mr Oliver said.

“But you don’t want it to be too tight, as if they think it’s going to stay tight, they might just sit there.”

Regarding the increase in numbers, he said the best thing for the government is to change the stamp duty to a global tax as it will remove a big barrier for many potential sellers.