13 July 2013
DOWNSIZING WITHOUT PENALTY The latest Federal budget has ignited fierce debate across the country. From Family Tax Benefits to the Medicare levy, Wayne Swan has certainly generated intense political dialogue. This is undoubtedly true for Australian pensioners too. From July next year, older Australians will be allowed to downsize the family home without putting their age pension at risk. Under the $112.4 million three-year trial, seniors will be able to sell their homes – which must have been owned for at least 25 years – buy a smaller home, and deposit 80% of the remaining proceeds (up to $200,000) into a special account.
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The funds, including interest, will be exempt from the age pension means-test for up to 10 years as long as no withdrawals are made. People moving into retirement village or granny flats can also benefit, but not those residing in residential aged care. The current age pension assets test doesn’t measure the value of a family home, but after it is sold the cash proceeds can trigger a reduction in pension eligibility. This new pilot scheme follows the Panel for Positive Ageing having identified housing as one of the major challenges of an ageing population. “We will trial a new measure over $112 million in funding to assist senior Australians to downsize to a home more suitable to their needs without reducing their age pension,” Mr Swan said. It’s also hoped the trial will free up family homes in a tight housing market. Craig J. Stephens Managing Director / Officer in Effective Control M 0418 547 938
As a service to our vendors, we will require names & phone numbers on entry of all inspections. Privacy Act 2000: We use personal information collected from you during open for inspections for security purposes. We may also use that information to contact you with respect to this property and others we believe may be of interest to you. Also, we may contact you in relation to other services provided by us or our associates such as insurance, mortgages and loans. By providing your information to us you agree to our use of it as described above unless you advise us differently. If the information is not provided we may not be able to provide an effective and comprehensive service to you. (Your personal information will be collected and held in accordance with provisions of the Information Privacy Act 2000). We have obtained all information in this document from sources we believe to be reliable, however, we cannot guarantee its accuracy. Prospective purchasers are advised to carry out their own investigations. We strongly recommend that you clearly register your interest with our representative at the open for inspection, so that in the event of a sale being imminent, your position is protected. We make every effort to contact all interested parties prior to a property being sold.
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More time Sometimes, there’s just not enough hours in the day. At Jas Stephens, we can’t make more time, but we can fit within your time frames. It all starts with our free appraisal. We come to you at a time that suits you. We can be really quick if you don’t have a lot of time, although there’s nothing we love more than chatting with you about your home. So if you’re considering selling, there’s no time like the present. You get more with Jas Stephens.