The Retirement Living Council (RLC) has made a number of submissions to the federal government in preparation for the upcoming May Federal Budget, claiming that funding to assist in the construction of additional retirement communities should be made available.

Daniel Gannon, the Council’s Executive Director, is of the belief that new communities will alleviate housing pressure at a time of crisis. With 1.2 million new homes targeted by 2029, Gannon says it makes sense for retirement communities to be front of mind.

“The Prime Minister’s 1.2 million new homes target is an admirably ambitious one, but retirement communities can help achieve this lofty goal as Australia ages,” he says.

“The added benefit is that retirement villages can delay entry into taxpayer funded aged care facilities through purpose-designed, happier and healthier communities.”

“Given the number of people aged over 75 is set to increase from two million to 3.4 million by 2040, government decision-making needs to facilitate and stimulate more supply – not hamper it.”

According to the ABS, the 75-79-year-old age group is outpacing all demographic cohorts at a growth rate of 6.6 percent. That equates to approximately 67,000 homes required for retirees, and six percent of the Housing Australia Future Fund Targets. Funding from the Albanese Government will assist in mitigating supply issues, at a time when 18,000 of the required 67,000 are currently planned.

Approximately $1 billion each year in taxpayer dollars is saved through the creation of retirement villages, as they delay retirees moving into aged care facilities. On average, retirement community residents are happier, more active and are less likely to be in hospital.

The other recommendations made to the government by the Council include: 

  • The advocation of the RLCs "Shared Care" initiative, which aims to optimise home care delivery through collaboration 
  • The elimination of purchase price restrictions for retirement communities
  • Amending inconsistencies that prevent residents from utilising the Home Equity Access Scheme, and
  • Proposing the exemption of a portion of home sale proceeds from the age pension asset test to encourage rightsizing.

 

Image: Mernda Retirement Village by Six Degrees Architects