Housing reform needed to unlock suitable housing for seniors
Many older people want to downsize but unsuitable housing and pension punishment are barriers. This initiative could be a game changer.
Key points
Queensland retirement village has been converted into housing for seniors at risk.
Seniors want to downsize but pension and housing quality barriers are an impediment.
National Seniors campaign initiatives help pensioners and renting seniors.
A former Brisbane retirement village has been repurposed as housing that is suitable for older people in need and as social housing.
The development could provide a blueprint for addressing the national shortage of suitable housing for older people who need to downsize from their demanding family home or move out of expensive rental housing.
The property, in Clayfield, is providing 37 homes for older people, including those at risk of homelessness.
The Queensland Government purchased the retirement village for the redevelopment and is also turning former retirement villages in Toowoomba and Redland Bay into social housing.
In the latest budget, the government provided $14 million in funding over two years for on-site support.
The government says the three former retirement villages combined will provide housing for more than 120 households in need.
Anyone in Queensland who needs housing assistance can call the 24/7 Homeless Hotline on
Downsizing contributions into superannuation
You may be able to contribute up to $300,000 from the proceeds of the sale (or part sale) of your home into your superannuation fund. From 1 January 2023, the eligible age is 55 or older. There is no maximum age limit.
Some of the eligibility criteria are:
The home must be in Australia, have been owned by you or your spouse for at least 10 years and the disposal must be exempt or partially exempt from capital gains tax (CGT).
You have not previously made a Downsizer contribution to your super from the sale of another home or from the part sale of your home.
Full eligibility criteria and other details can be found on the ATO website here.
Most seniors (92% according to one recent survey) want to remain in their own home as they age. However, there are many challenges to remaining at home, especially when physical or cognitive impairment becomes an issue.
The family home may also become unsuitable if it requires maintenance or modification.
In its 2022-23 budget submission to the Australian Government, National Seniors said more older Australians might consider downsizing if financial barriers were removed and alternatives were made available.
People on the Age Pension worry that selling the family home to downsize will affect their pension payments through the pension assets test.
Unless this is addressed, pensioners will remain trapped in unsuitable housing, putting them at higher risk of injury and premature entry into residential care.
Those who don’t own their own home rely on private rentals or community housing, both of which are in short supply.
Boosting the supply of dedicated rental housing for older people will improve their lives.
Protect pension payments by allowing people on the cusp of entering residential care the option of downsizing to a smaller, age-friendly home by exempting excess sale proceeds from the pension assets test.
This will ensure the delivery of care and support is easier and keep people out of residential care for as long as practical.
Eligibility would be restricted to people aged 80 and over, who are eligible for a Home Care Package, and have owned their home for more than 10 years.
- Those choosing to downsize could place excess funds into superannuation using the Downsizing into Superannuation scheme and would then be able to purchase additional care and support.
Create a capital grants scheme for the construction of rental housing for older people.
- Capital grants should be available to projects offering a simple rental agreement, with longer lease options and accessible housing design.
- The scheme should provide seed funding, which can be used to attract private capital for the development of rental housing projects.
- Housing should meet universal housing design standards to accommodate residents with physical or cognitive impairments, including dementia.
- Projects should be optimised to support the efficient delivery of home care.
- An example of a simple rental-style development is the Warner Close retirement village located in Murray Bridge, South Australia, which is a joint venture between the local council and a home care provider.
We also want the government to move on these initiatives:
Introduce a stamp duty concession for eligible seniors in all states and territories. We believe a concession for stamp duty for Pensioner Concession Card and Commonwealth Seniors Health Card holders in Queensland, New South Wales, South Australia and Western Australia will increase the appeal of downsizing.
Include accessible housing design standards in the National Construction Code (NCC). This will make new housing age-friendly and facilitate more downsizing options.
There’s more information about our Better Housing campaign and how to join it here.
Related reading: Minister’s statement, NSA Budget Submission, NSA Better Housing
