The Property Council of Australia’s Retirement Living Council has backed the Coalition’s commitment to allowing older Australians to unlock their home equity, but has refused to say whether it thinks Scott Morrison’s calls for home buyers to be allowed to access their super to purchase homes was good economic sense.
The Superannuation Home Buyer Scheme was launched by Morrison at the Coalition's election campaign launch in Brisbane over the weekend, which gives first home buyers the ability to use up to $50,000 of their super to put towards buying a home. The policy has been met with opposition many times, with former Prime Minister Malcom Turnbull labelling it as “thoroughly bad.”
The Property Council released a statement on Sunday which encouraged Australians between 55-60 to right size, but were tight-lipped in regards to the superannuation scheme.
“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 the government,” says the Retirement Living Council’s Executive Director, Ben Myers.
“We know many older Australians face barriers to right-sizing their housing and today’s announcement will provide real incentives to encourage people to unlock their home equity and move into a home that supports them to live independently for longer.
“Encouraging older Australians to right-size, not only contributes to healthier ageing, it’s also one of the smartest and fastest ways a government can boost much needed housing supply for families.
“The Property Council has long advanced solutions to encourage older Australians to right-size their housing and we welcome these announcements from the Government and the Opposition’s support for them.”
Those who will right-size their property will be able to invest up to $300,000 per person from the proceeds of the sale into their superannuation fund outside of the existing contribution caps, which would be lowered from 65 to 55 years.
Pensioners who opt to downsize will be given a two-year grace period before the proceeds of the sale of the property are subjected to asset testing for the pension, which gives Australians time to make financial arrangements while still receiving the pension.
“It will see older Australians incentivised to free up homes that are likely to be more affordable and especially well-suited to young families,” Myers says.
Myers called on both major parties to do more for Australia’s housing crisis, encouraging further age-friendly communities.
“State and local governments are making it very hard to finance and develop new retirement communities in suburbs and regions across Australia. Unless Australia is able to better provide the housing supply and choice that our ageing population needs, affordability and accessibility will be an increasingly dire social and economic issue.”
