The Federal Election campaign once again saw some interesting ideas put forward that could potentially have real impact on grey nomads and wannabe grey nomads.
One of those relates to pensioners, self-funded retirees, and working older Australians being offered new financial incentives to sell their family home earlier, and to downsize to something smaller.
This, of course, could help bring that long-term Big Lap that little bit closer to many wannabe grey nomads. The proposal – put forward by outgoing Prime Minister, Scott Morrison – is aimed at freeing up larger homes in the property market for younger families … and incoming PM Anthony Albanese quickly said a Labor Government would support the ‘sensible’ proposal.
Under the current rules, people aged 65 and older can put up to $300,000 per person in their super from the sale of a home.
Empty nesters with big houses are being encouraged to make way for families.
The new policy would reduce the age threshold for superannuation contributions from property sales to 55. The plan will also encourage pensioners to sell by exempting the proceeds of the sale from the assets test for two years instead of the current one.
Executive Director of Retirement Living at the Property Council of Australia, Ben Myers, said the announcement was an important step in encouraging older Australians to find a home that suits them better.
“Incentivising older Australians to unlock their home equity and right-size into more suitable housing options, especially purpose-built age-friendly communities, is a wise move by government,” Mr Myers said. “We know many older Australians face barriers to right-sizing their housing.”
One accommodation sector which is increasingly appearing on the radar of some of these ‘downsizers’ are purpose-built ‘villages’ for over 50s. These can offer manageable, affordable housing in a secure and sociable environment with plenty of space to park the rig.
It is not yet clear just how effective the new policy to encourage downsizing will be, and whether it will see a surge in interest for lifestyle villages. However, it is estimated that it will let up to 1.3 million more Australians use the sale of their family home to contribute to their super.
Other than Latitude 25 on the Qld coast in Hervey Bay which is specifically designed for people with large motorhomes & caravans, by providing oversize garages, does anyone know of similar designed complexes in Northern Vic or Mid NSW coast?
Downsizing contributions are counted for the assets and income tests for Age Pensioners. As such Pensioners WILL receive less Age Pension or at worse lose it. Do you sums first. A contribution is not exempt, not even for 1 year. We received less Pension and a friend lost his Age Pension due to a downsizer contribution.