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  • 08 Dec 2015

Downsizing Could Help Solve Housing Shortage

Former REINSW President Malcolm Gunning believes tax incentives for retirees to downsize would help to support the housing supply shortage.

Before stepping down Mr Gunning said the Institute had been lobbying government to introduce a stamp duty concession for downsizers for some time.
“We believe in supporting older Australians on the purchase of a smaller house on the basis that it frees up large homes that are being under-utilised,” Mr Gunning said.
“As part of our Real Tax Policy, we recognise that NSW should broaden the senior citizens transfer stamp duty exemption by lowering the minimum age to 55 years and removing the ‘new home’ restriction and the purchase price cap. 
“Many large houses are occupied by empty-nesters. There should be incentives to encourage them to sell and buy more appropriate housing. This measure should also increase supply of larger homes in established suburbs, improve affordability and stimulate better use of existing infrastructure.
“We are pleased by reports that retirees have been put on the agenda for December talks between Federal Treasurer Scott Morrison and state and territory treasury ministers,” Mr Gunning said.