The Retirement Living Council (RLC), of which Living Choice is a member, has applauded the Government’s plan to reduce the adverse financial impacts for pensioners looking to right-size, describing it as the “right move at the right time”.
RLC Executive Director Daniel Gannon said the policy changes would help cash-strapped senior Australians and create additional housing supply capacity for young families.
Under the plan, the Government will extend the exemption of home sale proceeds from pension asset testing from 12 months to 24 months.
“Removing dis-incentives for older Australians to ‘down-size’ into age-friendly communities is a ‘win’ for older homeowners, government health and aged care budgets, and for younger Australians looking for family-sized houses in established neighbourhoods,” Mr Gannon said.
“As taxpayers face growing health and aged care costs, older Australians ‘right-sizing’ into age-friendly communities is the right move at the right time. This is a win-win for seniors and the nation’s housing market, which is currently under great duress,” he said.
The Government will also expand access to downsizer superannuation contributions for people aged 55 to 59. The downsizer contribution will allow people to make a one-off post-tax contribution to their superannuation of up to $300,000 per person from the proceeds of selling their home.
Mr Gannon said the Government also promised 20,000 new social housing dwellings, which will support older women at risk of homelessness.