Incentivising Pensioners to Downsize Bill introduced

Social Services has introduced the Social Services and Other Legislation Amendment (Incentivising Pensioners to Downsize) Bill 2022 to parliament.

This Bill amends the Social Security Act 1991 and the Veterans’ Entitlements Act 1986 to better support pensioners (or other eligible income support recipients) during the sale and purchase of a new principal home, by:

• extending the existing assets test exemption for principal home sale proceeds which a person intends to use to purchase a new principal home from 12 months to 24 months and

• applying only the lower below threshold deeming rate to these asset test exempt principal home sale proceeds when calculating deemed income.

These changes reduce the impact of selling and buying a new principal home on an income support recipient’s rate of payment.

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