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Dumping Housing Help for Seniors Program is a Retrograde Step

Mary Wood
Mary Wood

The Federal Government’s decision to abolish a pilot program that removes penalties on age pensioners who wish to downsize is a disappointing and retrograde step, the retirement living sector’s peak body says.

Mary Wood, Executive Director of the Retirement Living Council, says that dumping the Housing Help for Seniors program, just before it was due to begin, will have adverse effects for senior Australians who want to move to a smaller house.

“The Productivity Commission has recommended in two recent reports that the Australian Government should support innovative schemes that allow wealth in family homes to be unlocked, and enable seniors to downsize without being financially penalised,” Ms Wood says.

“Senior Australians should be allowed to choose homes that allow them to age in place, but the scrapping of Housing Help for Seniors creates less housing choice and puts more pressure on residential aged care and the taxpayer.
“This is an outcome contrary to the Government’s desire to cut expenditure and support more consumer-directed care.

“Enabling senior Australians to choose homes containing grab rails and other mobility-enabling features, free of any trip hazards, such as homes in retirement villages, has many social and economic benefits, which will be harder to attain for many Australians due to this decision.

“While we note there is no change to the age pension asset test in the Budget, it is important to note that the current test deters many people aged 65 and above from downsizing.

“The Federal Government states that 100,000 pensioners currently move house each year, but the Housing Help for Seniors trial could have opened up that option for so many more.

“However, we congratulate the Federal Government on a positive initiative that will no longer subject retirement village operators to double taxation if ownership of a village changes because of a company acquisition.

“This is a win for the Retirement Living Council and a fair and just outcome for our sector,” Ms Wood concluded.