[Suzanne rose]

Down Sizing​

Federal government moves to free up housing supply by incentivising pensioners to downsize​

The federal government is seeking to free up housing supply by encouraging pensioners to downsize their homes.
In legislation which will be tabled in parliament on Wednesday, the government will give pensioners a 24-month exemption on the asset test on home sale proceeds, lowering the deeming rate from 2.25 to 0.25 per cent per annum.
The deeming rate is used to determine pension amounts.

Minister for Social Services Amanda Rishworth said the 24-month exemption will allow older Australians more time to build, rebuild, repair or renovate a new home before their pension is impacted. (Alex Ellinghausen)
Pensioners are currently exempt from the social security assets test for up to 12 months when they sell their home to purchase or build another home, although there is an extra 12-month exemption available in extenuating circumstances.
That additional 12-month period will still be available under the proposed legislation.
The government said the 24-month exemption will allow older Australians more time to build, rebuild, repair or renovate a new home before their pension is impacted.

"We don't want people putting off downsizing to a more suitable home because they are concerned about the impact it could have on their payment rate and overall income," Social Services Minister Amanda Rishworth said.
"These changes will give pensioners more flexibility to find a suitable new home and it will hopefully free up larger housing stock for younger families who need it."

More than 8000 pensioners downsized their homes last year, and the government is hoping the proposed changes to the asset test exemption would see that number increase

 

[Suzanne rose]

Federal government moves to free up housing supply by incentivising pensioners to downsize​

The federal government is seeking to free up housing supply by encouraging pensioners to downsize their homes.
In legislation which will be tabled in parliament on Wednesday, the government will give pensioners a 24-month exemption on the asset test on home sale proceeds, lowering the deeming rate from 2.25 to 0.25 per cent per annum.
The deeming rate is used to determine pension amounts.

Minister for Social Services Amanda Rishworth said the 24-month exemption will allow older Australians more time to build, rebuild, repair or renovate a new home before their pension is impacted. (Alex Ellinghausen)
Pensioners are currently exempt from the social security assets test for up to 12 months when they sell their home to purchase or build another home, although there is an extra 12-month exemption available in extenuating circumstances.
That additional 12-month period will still be available under the proposed legislation.
The government said the 24-month exemption will allow older Australians more time to build, rebuild, repair or renovate a new home before their pension is impacted.

"We don't want people putting off downsizing to a more suitable home because they are concerned about the impact it could have on their payment rate and overall income," Social Services Minister Amanda Rishworth said.
"These changes will give pensioners more flexibility to find a suitable new home and it will hopefully free up larger housing stock for younger families who need it."

More than 8000 pensioners downsized their homes last year, and the government is hoping the proposed changes to the asset test exemption would see that number increase

We are looking at downsizing next year and we are starting to look at new areas southern NSW.
The Government wants seniors to downsize to free up housing so why not give incentives like lower stamp duty or better yet abolish stamp duty. Other states have already done this including Canberra , why is NSW always last

 

[Sethia Soliman]

We are looking at downsizing next year and we are starting to look at new areas southern NSW.
The Government wants seniors to downsize to free up housing so why not give incentives like lower stamp duty or better yet abolish stamp duty. Other states have already done this including Canberra , why is NSW always last

Great idea! I hope everything works out well for you, @Suzanne rose !!

 

[Xmas2525]

We are looking at downsizing next year and we are starting to look at new areas southern NSW.
The Government wants seniors to downsize to free up housing so why not give incentives like lower stamp duty or better yet abolish stamp duty. Other states have already done this including Canberra , why is NSW always last

Victoria at least gives pensioners a one-off incentive of no stamp duty on a move for pensioners, that would help considerably in getting people to downsize. How about the other states come on board, if they wish older people to get out of their larger homes for the younger generation. It would be a WIN/WIN situation all round.

 

[Suzanne rose]

Victoria at least gives pensioners a one-off incentive of no stamp duty on a move for pensioners, that would help considerably in getting people to downsize. How about the other states come on board, if they wish older people to get out of their larger homes for the younger generation. It would be a WIN/WIN situation all round.

I really don't know why other states wouldn't. I have a 7 bedroom ,3 living room house. I want to down size to a 3 or 4 bedroom house,