With an election looming, the Property Council of Australia (PCA) is stepping up its lobbying of the federal government to make changes to the age pension means test, to remove the current disincentive for older people to downsize from the family home.

They are proposing a targeted adjustment to the age pension means test - to increase the asset free threshold by ‘somewhere between $100,000 and $200,000’ for age pensioners aged 75 or over who are home owners and purchase a cheaper home within 12 months.

Labor has already signalled its support for ways of "incentivising older Australians to downsize their home without it significantly affecting their pension outcomes.”

Any government serious about addressing the shortage of affordable housing in Australia and improving health and lifestyle outcomes for older people, needs to think seriously about supporting this. 

Read more here.