‘Less’ housing choice for older Aussies

Peak body for Australia’s $50 billion retirement village industry, the Retirement Living Council (RLC), has opposed the recommendation by the Commission of Audit to scrap the pilot program, titled Housing Help for Seniors, stating it would have a contrary effect to the Commission of Audit’s goal of reducing public expenditure in the medium to long term.

Mary Wood, RLC executive director, said: “In two recent landmark reports, the Productivity Commission recommended that the federal government support innovative schemes that allow wealth in family homes to be unlocked, and enable seniors to downsize as well as contribute more to age related services, without being penalised.

“The Housing Help for Seniors program is the first step down this road – costing $112 million over two years, it assists seniors who wish to sell their large family home, with trip hazards and big maintenance bills, to downsize to homes built for their needs, such as retirement communities,” she said.

Ms Wood urged governments to enable older Australians to make housing choices that preserve independence and encourage ageing in place.

“If the Commission’s recommendation is accepted, senior Australians will have less housing choice, and there will be more pressure on the publicly funded aged care system.

“This would be a perverse economic effect and a retrograde step in the context of an aged care system that is increasingly moving away from residential aged care.”

The best way to support an older person to stay in their own home, according to Ms Wood, is to allow them to choose a home that suits them, and not threaten to reduce their pension if they bank a modest saving after downsizing to a purpose built, independent dwelling.

The Retirement Living Council notes the proposed changes to age pension eligibility and the inclusion of family homes in a single means test from 2027-28 onwards.

“The current pension means test deters people aged 65 and above from downsizing or moving into retirement villages – let’s get this right first,” she says.

“There are many senior Australians who are deterred now from downsizing, and thereby more prone to loneliness and isolation. Independent private housing designed for seniors, like retirement villages, have proven positive health and wellbeing effects. People who wish to make that move should be supported, not discouraged.”