Housing older Australians
On the eve of the Federal Budget, we ask what can be done to address the housing crisis and how we can help older people address their housing needs.
We know housing is a huge issue for all Australians, rents are spiraling upwards, and home ownership is getting further and further out of reach. So, what can we do?
Only last week, the property development industry joined with community and housing advocates to call on the Federal Government to double the size of its housing future fund from $10 billion to $20 billion to deliver more social and affordable housing.
National Seniors has been active in the housing space for some time, advocating for policy changes to make housing more affordable and to deliver more housing that is suited to older people.
We have long advocated for an increase in rent assistance and were pleased that a rise of 15% was provided in the last budget. But more needs to be done.
One of the problems facing renters is the way that indexation of the Commonwealth Rent Assistance (CRA) payment is made. Currently, it increases in line with overall CPI. However, the increase in actual rents has been much higher than CPI, meaning payments are not keeping pace with price increases.
While rent increases will only abate when supply and demand come into alignment, increasing rent assistance and indexing CRA to the rent component of CPI are short term measures which could help ease some of the pain for older (and younger) people in the private rental market.
One of the big problems with housing is the mismatch between the housing people want and the housing they can get.
Our research shows that older people face financial barriers to moving into housing that is suited to their needs. That is why we supported the campaign to include accessibility standards in all new housing, something that was agreed to in the Building Code but has met with opposition in many states and territories.
We have also called for stamp duty concessions for seniors to remove what you have told us many times is a key barrier to downsizing or moving.
It is also why we continue to call for changes to the Age Pension Assets Test to support people who want to move.
In our budget submission, we are calling for the government to exempt excess proceeds from downsizing from being counted in the assets test for people over 80 receiving a home care package. These are people who would benefit from moving to a more appropriate home, as it will help them to remain independent longer.
We know from our research that many people are concerned about the impact of downsizing on their pension entitlement, which creates a barrier to moving to homes that are better suited to people as they age.
We believe this policy will have a positive impact on the supply of housing, because it will free up larger homes for bigger families or for redevelopment to boost overall supply, while creating a stronger signal to the housing market to supply housing suited to older people.
A further initiative we are supporting is an exemption from the income test for older people who choose to rent out a room in their home.
There are thousands of older people who may consider sharing their home if they knew it wasn’t going to impact their pension. While it’s not for everyone, it could help boost supply without having to lay a single brick or foundation.
We are also calling on the government to investigate whether a capital gains tax exemption would encourage more home sharing as a supply solution.
These policies won’t fix the housing crisis alone, but they will make a difference as part of a wider set of housing policies, so they should be considered.
On budget night, 15 May, we hope some of these policies will be announced.
Read our full budget submission here and our housing specific policies here.
