For many Australians over 50, downsizing could be a significant consideration—especially once your children have moved out, leaving you with more space than you need. Moving to a smaller, more manageable home could offer significant financial and lifestyle benefits. However, the process is often discouraged by the high cost of stamp duty, making it a challenging decision despite its potential advantages.
Fortunately, a positive change may be on the horizon for empty nesters, as Nationals Leader David Littleproud has recently voiced his support for reducing this financial barrier.
In a move that aligns with the concerns of many seniors, Littleproud has acknowledged the merit of slashing stamp duty for those seeking to downsize their living arrangements. This endorsement comes in the wake of comments from ING Australia’s chief executive, Melanie Evans, who highlighted the need for policies that encourage empty nesters to sell their family homes.
Such a shift could significantly free up housing stock in competitive markets, making it easier for families and first-time buyers to enter the property market.
During the Australian Financial Review Banking Summit, Evans pointed out that without policy changes to facilitate downsizing, a valuable opportunity to make more productive use of housing stock could be missed.
‘If we always put barriers in front of people downsizing, we’re not going to release the existing stock,’ she stated, emphasising the potential benefits of such a policy shift.
While stamp duty is traditionally within the purview of state governments, Littleproud’s comments suggest a broader recognition of the issue at the federal level.
‘I think it has merit. We do it for first homebuyers, why wouldn’t we allow those who want to get out and downsize to have the stamp duty exemption,’ he remarked on Sunrise, drawing a parallel between incentives for first homebuyers and potential concessions for downsizers.
However, the Nationals leader’s stance is not without its complexities, as the federal government also grapples with housing affordability issues, including rules to stop foreign investors from buying established homes. These rules, set to take effect from 1 April, are part of Labor’s two-year crackdown aimed at giving Australians a better chance at owning a home.
Housing Minister Clare O’Neil, however, has pointed out that stamp duty taxes remain a state government matter. She has instead highlighted Labor’s Housing Australia Future Fund, which aims to build 1.2 million homes by mid-2029, as a key initiative to improve housing affordability and availability.
The idea of tax concessions for downsizers has previously gained traction in New South Wales, with both former Liberal premier Dominic Perrottet and current NSW Opposition Leader Mark Speakman proposing stamp duty exemptions for seniors selling their family homes.
As the conversation around stamp duty reform continues, empty nesters need to stay informed and engaged with the developments. If you’re considering downsizing, it’s worth keeping an eye on policy changes that could make the process more affordable
We invite you to share your thoughts and experiences with downsizing. Have you been deterred by the cost of stamp duty? Would a reduction or exemption encourage you to make the move? Join the conversation below and share with fellow YourLifeChoices readers how stamp duty has impacted your decisions.
Also read: Stamp duty costs an issue for older downsizers, calls for retiree exemption
