The 2017 budget highlights the government’s preference for cosmetic rather than consequential changes in housing policy. On downsizing, the government has badged a giveaway to a small number of seniors as a housing affordability measure.
Encouraging senior Australians to downsize their homes is one of the more popular ideas to make housing more affordable. The trouble is, incentives for downsizing would hit the budget, but make little difference to housing affordability. This article looks at government incentives that could release housing stock without financially penalising older home owners.
Rising housing costs are hurting low-income Australians the most. Those at the bottom end of the income spectrum are much less likely to own their own home than in the past, are often spending more of their income on rent, and are more likely to be living a long way from where most jobs are being created.