Financial Choice initiative a practical way to help more Australians into the right type of home
Urban Development Institute of Australia applauds today’s announcement from the Liberal Party that gives older Australians the financial choice to downsize their homes and contribute proceeds to their pension.
From 1 July 2022, 1.3 million over 55 year old Australians would be able to downsize their home, invest $300,000 of the proceeds in their pension and exempt all proceeds from the asset test for longer.
It aligns very closely with one of our key Federal Election Campaign policy priorities – A Home for Everyone – that recommends greater access to housing choice across different socioeconomic groups. It just makes sense,” said Maxwell Shifman, UDIA National President.
The Financial Choice initiative will help more Australians get into a home that is right for them – encouraging downsizing and freeing up more larger dwellings for growing families and older Australians can make suitable lifestyle choices without penalising their pensions.
With new greenfield housing sales set to slump as much as 43% in the coming year due to a lack of stock, material and labour, this initiative comes at the right time.
“A major concern for the property and development industry is that reduced supply is pushing up costs and causing delays for new housing across the spectrum. Any initiative that helps Australians realign their housing with their needs from existing housing stock, is welcome.” said Mr Shifman.
“Critically, this is only one of a range of changes we need if we have any hope of reigning in housing costs and achieving housing affordability. We need more development ready supply, and more tax and planning changes that help reduce the cost of delivering more right-sized housing,” he added.
“Top of the list of complementary initiatives, is incentivising state and territory Governments to increase stamp duty thresholds, so selling a house and repurchasing is not penalised by high transaction costs,” he said.
“Federal political leadership should also incentivise states and territories to boost development ready land, fast track enabling infrastructure and streamline planning and approvals to maximise housing affordability,” said Maxwell Shifman.
“UDIA National looks forward to working with the Federal political leadership to implement measures that will combat the affordability crisis and help all Australian’s find a home of their own.”
Deanna Lane | National Media & Communications Manager | 0416 295 898 | email@example.com