- Angus Raine says the changes "removes another excuse" not to downsize
- Announcement was made during Tuesday's federal budget
- Changes hope to increase the turnover of empty nesters' oversized homes
The Executive Chairman of Raine & Horne, Angus Raine, has said the extension of the downsizer superannuation scheme “removes another excuse” for boomers aged between 60 and 64 not to downsize.
The super scheme announcement was made during Tuesday’s federal budget speech and is hoped the policy – along with boosting retirement savings – will increase housing stock turnover and possibly improve housing affordability.
In particular, it is designed to increase the turnover of oversized houses for empty-nesters that can then be acquired by families and other buyers.
“Many empty-nesters are hindering the second home buyer markets in our major capital cities because there are no incentives for them to move,” said Mr Raine.
“This announcement … by the Treasurer means more boomers can confidently take the plunge into downsizing in a tax-effective manner that will enhance their retirement savings.”
Angus Raine, Executive Chairman of Raine & Horne
Mr Raine has previously called upon state governments to consider stamp duty tax breaks for empty nesters to encourage downsizing even further.
“If the state governments aren’t going to budge on stamp duty, I’m delighted the federal gIt is hoped overnment is doing some heavy lifting by extending the downsizer super contribution.”
The downsizer scheme was previously only available to those 65 and over. The cap is limited to $300,000 per person so couples between them can effectively make a $600,000 contribution to their super.
“These contributions are not only a fantastic way to turbocharge retirement savings in a tax-effective way, but empty nesters will be able to make a community contribution by freeing up their larger family homes for the next generation of upgraders,” Mr Raine concluded.