The coalition goverment has offered an financial incentive for people aged over 55 to downsize and free up homes for younger generation.
At the Liberal Party’s campaign launch on Sunday, Prime Minister Scott Morrison will lay out plans to make purchasing a first home from an older person easier for younger families.
“The move is intended to assist free up bigger homes for younger families,” Mr Morrison said.
The minimum age for downsizing and investing up to $300,000 per person from the sale into a super fund will be lowered from 65 to 55.
In addition, participants will now be permitted to take advantage of the $300,000 each from sale to invest into their super-fund.
Pensioners who downsize will be given a two-year exemption from asset testing if the Coalition is elected.
The proposal would assist younger families in finding a home, according to Prime Minister.
‘We are now giving Australians more choice to decide how they want to live the next stage of their life by removing financial barriers for people wanting to downsize their home,’ he told News Corp.
‘Buying your first home is never easy and that’s why we have been focused on helping … people realise the great Australian dream of owning a home.
‘I want help more and more young families right across Australia to move into their own home and support their aspiration.’
Close to 2 million pensioners are owning homes in Australia.