If you’ve been considering relocating and downsizing your home, this might be the perfect time to take the leap as the Labor government recently announced a proposal that could benefit thousands of pensioners.

Pensioners are set to receive greater financial incentives if they decide to downsize their homes in a bid to boost housing stock for families, as part of the Labor government’s promise to match a plan that was first proposed by the Coalition.

Social Services Minister Amanda Rishworth stated that she hoped ‘thousands’ of older Australians would benefit from the change, which will lessen the impact on pension payments if homeowners make a considerable amount of money from their property sale.

‘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.’ she said.

Have you been thinking about downsizing your home? Source: Claridge Court​

‘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 may need it.’

The changes–which will be introduced to the Parliament on Wednesday–extend the asset test exemption on home sale proceeds from 12 months to 24 months, giving pensioners more time to buy or build a new home before the extra money in their bank account begins to affect their pension payments.

The government will also decrease the deeming rate–which calculates income from assets–on home sale proceeds from 2.25 per cent to 0.25 per cent.

Rishworth’s office detailed that, under the current system, a couple that sells their home for $1 million could see their pension reduced by $229 per fortnight, while a single pensioner selling their home for $600,000 could have their pension reduced by $143 per fortnight. These proposed changes would see no reduction in pensions in either case.

Former Prime Minister Scott Morrison previously proposed the policy on 15 May, which is the weekend before the election. Albanese told ABC’s Insiders program on the same day that Labor would carry on with Coalition’s policy, calling it ‘a modest announcement to extend a downsizing program’.

‘This suggestion by the government is a practical one. We’ll support it, but we will have much more in our offer to the Australian people next Saturday.’ Albanese stated at the time.

The proposed changes are the latest initiatives to support pensioners. They came after an indexation increase to welfare payments was made earlier this week. The government also previously announced a new $4,000 work credit for pensioners to take on more employment without it affecting their payments, as one of the major outcomes of the Jobs and Skills Summit.

A new program aims to support people with a disability. Source: iStock​

In addition, Rishworth announced a new program that will provide job opportunities in the tourism, hospitality, accommodation, and visitor industry, particularly for those who have a disability.

In a joint announcement with the Tourism Minister, Don Farrell, Rishworth set aside $3.3 million for the Visitor Economy Disability Pilot, as last week’s jobs summit brought light to several challenges faced by people with a disability when finding employment.

More than half of Australians with a disability are currently in the labour force, a gap of roughly 30 per cent compared with the wider population. Sitting at 10 per cent is the unemployment rate for people with a disability, which is twice the rate compared to people without a disability.

‘Employing someone who is living with a disability should not be seen as a charitable act.’ Rishworth said. ‘It makes good business sense. When the visitor economy is crying out for workers, people living with a disability should get the same opportunities to have meaningful careers in the sector.’

The program will fund ‘local navigators’ in regional areas, who will assist businesses in looking for and hiring people with a disability.’

Farrell said that tourism was among the several key industries facing significant job shortages over the coming years.

‘The tourism sector is crying out for workers and if we can create pathways to open up jobs and careers for people living with disabilities in this sector, then it is a good thing for everyone.’

What are your thoughts about these changes? Do you think that they are in line with what seniors need? Anything that puts more money back in pensioners' pockets sounds good to us! Let us know in the comments.

Learn more about downsizing your home by watching the video below:

Source: One Minute Economics​

 

[Ricci]

I'm looking at it as an adventure and lots of little trips. Hubby wants to stay where we are but 30 years here it's time we had a change and I want out of the city

Lake Illawarra is fine, just still too built up for me! It's still the big smoke!!

 

[Elbe]

And looking at the other side of things ..... exactly who is it that the government thinks will buy all the old, and so often million dollar, properties? Every young person I know wants to build their own house so they can "have exactly what I want" and don’t forget the grants for new builds are far better than for buying an established property. Government also say they've got to support all the building companies as well. Maybe the government is going to give houses to all the extra migrants they're going to allow in or will they want new houses too? I find it insulting & sad that anyone would think older Australians should give up the things we've worked all our lives to accumulate unless we want to because not everyone wants to downsize. Yes, the government are only offering things to help older Australians IF they want to downsize but just doing so has already created speculative discussion that it's somehow the patriotic thing to do. But, will any of the politicians divest themselves of their extensive property portfolios, I wonder?

Personally speaking, after the isolation & loneliness of lockdowns there is no way I'd ever willingly put myself into any situation where I relinquish my autonomy.

 

[Ezzy]

If you’ve been considering relocating and downsizing your home, this might be the perfect time to take the leap as the Labor government recently announced a proposal that could benefit thousands of pensioners.

Pensioners are set to receive greater financial incentives if they decide to downsize their homes in a bid to boost housing stock for families, as part of the Labor government’s promise to match a plan that was first proposed by the Coalition.

Social Services Minister Amanda Rishworth stated that she hoped ‘thousands’ of older Australians would benefit from the change, which will lessen the impact on pension payments if homeowners make a considerable amount of money from their property sale.

‘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.’ she said.

TV
Have you been thinking about downsizing your home? Source: Claridge Court​

‘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 may need it.’

The changes–which will be introduced to the Parliament on Wednesday–extend the asset test exemption on home sale proceeds from 12 months to 24 months, giving pensioners more time to buy or build a new home before the extra money in their bank account begins to affect their pension payments.

The government will also decrease the deeming rate–which calculates income from assets–on home sale proceeds from 2.25 per cent to 0.25 per cent.

Rishworth’s office detailed that, under the current system, a couple that sells their home for $1 million could see their pension reduced by $229 per fortnight, while a single pensioner selling their home for $600,000 could have their pension reduced by $143 per fortnight. These proposed changes would see no reduction in pensions in either case.

Former Prime Minister Scott Morrison previously proposed the policy on 15 May, which is the weekend before the election. Albanese told ABC’s Insiders program on the same day that Labor would carry on with Coalition’s policy, calling it ‘a modest announcement to extend a downsizing program’.

‘This suggestion by the government is a practical one. We’ll support it, but we will have much more in our offer to the Australian people next Saturday.’ Albanese stated at the time.

The proposed changes are the latest initiatives to support pensioners. They came after an indexation increase to welfare payments was made earlier this week. The government also previously announced a new $4,000 work credit for pensioners to take on more employment without it affecting their payments, as one of the major outcomes of the Jobs and Skills Summit.

A new program aims to support people with a disability. Source: iStock​

In addition, Rishworth announced a new program that will provide job opportunities in the tourism, hospitality, accommodation, and visitor industry, particularly for those who have a disability.

In a joint announcement with the Tourism Minister, Don Farrell, Rishworth set aside $3.3 million for the Visitor Economy Disability Pilot, as last week’s jobs summit brought light to several challenges faced by people with a disability when finding employment.

More than half of Australians with a disability are currently in the labour force, a gap of roughly 30 per cent compared with the wider population. Sitting at 10 per cent is the unemployment rate for people with a disability, which is twice the rate compared to people without a disability.

‘Employing someone who is living with a disability should not be seen as a charitable act.’ Rishworth said. ‘It makes good business sense. When the visitor economy is crying out for workers, people living with a disability should get the same opportunities to have meaningful careers in the sector.’

The program will fund ‘local navigators’ in regional areas, who will assist businesses in looking for and hiring people with a disability.’

Farrell said that tourism was among the several key industries facing significant job shortages over the coming years.

‘The tourism sector is crying out for workers and if we can create pathways to open up jobs and careers for people living with disabilities in this sector, then it is a good thing for everyone.’

What are your thoughts about these changes? Do you think that they are in line with what seniors need? Anything that puts more money back in pensioners' pockets sounds good to us! Let us know in the comments.

Learn more about downsizing your home by watching the video below:

Source: One Minute Economics​

Possibly sounds good in theory & for pensioners who own their home this may be feasible but for those who do not, any profit from the sale of their property would pay the loan. Building a new home as was suggested in the article may even cost more than the home just sold in the long term, l feel. Especially if downsizing means not building a home off the plan.

Whatever we do the biggest initial cost comes with just selling the home & Real Estate Fees.

 

[Suzanne rose]

And looking at the other side of things ..... exactly who is it that the government thinks will buy all the old, and so often million dollar, properties? Every young person I know wants to build their own house so they can "have exactly what I want" and don’t forget the grants for new builds are far better than for buying an established property. Government also say they've got to support all the building companies as well. Maybe the government is going to give houses to all the extra migrants they're going to allow in or will they want new houses too? I find it insulting & sad that anyone would think older Australians should give up the things we've worked all our lives to accumulate unless we want to because not everyone wants to downsize. Yes, the government are only offering things to help older Australians IF they want to downsize but just doing so has already created speculative discussion that it's somehow the patriotic thing to do. But, will any of the politicians divest themselves of their extensive property portfolios, I wonder?

Personally speaking, after the isolation & loneliness of lockdowns there is no way I'd ever willingly put myself into any situation where I relinquish my autonomy.

So very Well said. !!

The Government is not really doing anything to help, well not in NSW. What they are doing they should automatically ve doing for seniors.

When I downsize it will be my choice for a better life style.

Let's hope it never comes to where they make you downsize

 

[Suzanne rose]

Possibly sounds good in theory & for pensioners who own their home this may be feasible but for those who do not, any profit from the sale of their property would pay the loan. Building a new home as was suggested in the article may even cost more than the home just sold in the long term, l feel. Especially if downsizing means not building a home off the plan.

Whatever we do the biggest initial cost comes with just selling the home & Real Estate Fees.

Those fees are huge. Stamp duty for me will be more than $40,000.
Real estate can be around $10,000.

If they want people to downsize then they need to do something with stamp duty

 

[Ezzy]

Those fees are huge. Stamp duty for me will be more than $40,000.
Real estate can be around $10,000.

If they want people to downsize then they need to do something with stamp duty

Well stated.

 

[rehandra]

Not interested in down sizing unless stamp duty goes - it's a rort!!!!

I may be wrong but I thought there was NO stamp duty when selling. It is the buyer who pays in WA....well that is what happened when we bought and sold.

 

[Suzanne rose]

I may be wrong but I thought there was NO stamp duty when selling. It is the buyer who pays in WA....well that is what happened when we bought and sold.

Correct.. .but most people who sell then buy another house and then pay stamp duty.

I don't know anyone who sells their house and not to buy another one