Federal Election 2022: Prime Minister Scott Morrison’s $300k baby boomer downsize plan

In a last-ditch effort to snag a number of extra votes forward of the Federal Election, Prime Minister Scott Morrison will unveil a mammoth plan for empty nesters.

Empty nesters as younger as 55 shall be inspired to downsize their houses and stash the money of their superannuation beneath the Prime Minister’s ultimate coverage pitch to voters.

Scott Morrison will formally launch the Liberal Party’s marketing campaign in Brisbane on Sunday and he’s planning to flick the swap to housing affordability.

Baby Boomers, and for the primary time older Generation X-ers, will be capable to promote their houses and stash as much as $300,000 of their tremendous beneath the plan to be unveiled on Sunday.

The PM’s large thought is all about encouraging extra individuals aged over 55 to downsize with out penalties, a transfer that can even launch extra housing inventory into the marketplace for first dwelling consumers.

Currently you’ll be able to promote your home and stash as much as $300,000 in tremendous when you’re over 65 however beneath the adjustments it is possible for you to to do it if you’re solely 55.

Up to 1.3 million empty nesters and pensioners will be capable to entry incentives to downsize their home, in response to the Morrison Government.

Pensioners who downsize their dwelling can even be given better flexibility by exempting the proceeds of the sale of the property from the property check for longer.

It means pensioners will now have as much as two years to construction their property following the sale of their dwelling – with out impacting their pension.

“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,’’ Mr Morrison said.

“By removing barriers for Australians downsizing to residences that better suit their needs and lifestyle, we are helping to free up larger homes for younger families”.

“Buying your first home is never easy and that’s why we have been focused on helping more than 300,000 people realise the great Australian dream of owning a home.”

“I want to help more and more young families right across Australia to move into their own home and support their aspiration.”

If re-elected the adjustments to permit Australians over the age of 55 to promote and downsize their dwelling and contribute $300,000 into their superannuation fund will start on 1 July 2022.

The Prime Minister has been ramping up the assaults on Labor chief Anthony Albanese this week as a “loose unit” on the financial system.

He attacked the ALP’s plan to permit low earnings households to purchase a home with a smaller mortgage and the federal government proudly owning as much as 40 per cent of the property.

Housing Minister Michael Sukkar stated the coverage they’re saying will give older Australians better flexibility in selecting to downsize their dwelling and enhance housing inventory for youthful households searching for bigger houses.

“These adjustments will straight assist in unlocking the availability of bigger houses for these youthful households who’re hoping to broaden, and on the identical time incentivise older Australians to downsize by placing extra into their tremendous. By releasing extra provide of bigger homes, we’re offering extra selection for households,’’ Mr Sukkar stated.

A re-elected Morrison Government’s can even double the time pensioners must construction their property following a sale of their household dwelling, with out impacting their pension, will start on 1 January 2023.


Super coverage

– Currently solely individuals 65 and over can put as much as $300,000, per particular person, into their tremendous following the sale of the household dwelling.

– Under a re-elected Morrison Government plan this can drop to individuals aged 55 and over on 1 July 2022.

– Under this election plan, as much as 1.3 million further individuals will now grow to be eligible for this scheme.

Pension coverage

– This will enhance the period of time that pensioners must construction their property following the sale of the household dwelling – from one to 2 years – with out impacting their pension.

– This coverage shall be launched from January 1 2023.

– There are round 1.9 million Age Pensioners who’re additionally owners and this coverage is demand pushed.

– It is estimated to value $62 million over the ahead estimates.

– Under this dedication principal dwelling sale proceeds shall be deemed on the decrease deeming fee for the interval the proceeds are exempt from the property check. That is the deeming fee used to find out the earnings earned from the proceeds of the sale that’s put into the financial institution or different monetary investments shall be 0.25 per cent.

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