In short:
More older Australians are looking to downsize but are put off by the large stamp duty they would have to pay.
asserted
they → look → duty
Michael and Leisa McLennan want to move to a smaller home that requires less maintenance but have "significant concern" over the fees they would have to fork out.
asserted
they → want → fees
Urban planning expert Rachel Gallagher says a lack of suburban housing diversity was another major issue keeping people from downsizing.
asserted
lack → say → people
With two of their adult children having flown the coop and their third likely to do so soon, Michael and Leisa McLennan have found themselves in a bind.
asserted
themselves → fly → bind
After 14 years, the almost empty nesters want to downsize from their five-bedroom family home with a pool in the suburbs and move into something smaller which requires less maintenance.
asserted
which → want → maintenance
But the tens of thousands of dollars in stamp duty they would have to pay is a "significant concern" and may just be the thing which keeps them there.
"Instead of giving that money to government, we could buy ourself a new car, we could have multiple overseas holidays, or we could renovate the house," Mr McLennan said.
uncertain
McLennan → have → house
"It doesn't feel right that there are effectively significant financial penalties for someone such as us to move out of a five-bedroom house to move into, say, a three-bedroom apartment.
asserted
someone → feel → apartment
It's a significant obstacle."
The couple is also worried about what apartment living or townhouse living might be like in practice, having never lived in one before.
"We wouldn't want to be in a position where we buy something — we pay our stamp duty plus the other costs and then in two years' time, we're having to go through all of that again because we weren't comfortable," Mr McLennan said.
uncertain
McLennan → live → that
The McLennans believe incentives like stamp duty concessions would encourage more people to downsize, freeing up larger homes for younger families.
asserted
incentives → believe → families
In fact, there's a penalty to downsize,"Mr McLennan said.
asserted
McLennan → be → fact
Some economists and even the federal housing minister believe stamp duty is a bad tax, and have called for it to be phased out, but state governments garner billions of dollars a year from it — revenue which has only increased as housing prices have.
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prices → believe → it
South Australia has announced exemptions for over 60s who move in to new builds.
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who → announce → builds
Only Victoria and the ACT offer stamp duty concessions for pensioners.
asserted
Victoria → offer → pensioners
In Queensland, where the McLennans are based, it's not something being considered by the government.
asserted
it → base → government
Treasurer David Janetzki said the government was focused on no stamp duty for first home buyers on new homes as well as other home ownership schemes.
asserted
government → say → homes
Offering a "modest" senior stamp duty concession has long been on the policy agenda for National Seniors Australia's Brendon Radford who says repeated surveys over the years have shown the cost of moving is among biggest barriers to people who want to downsize.
asserted
who → offer → people
The stamp duty on a million-dollar home can vary across Australia from the 30-thousand mark to more than 50-thousand in some jurisdictions.
asserted
duty → vary → jurisdictions
Dr Radford said the costs of a move, including taxes and legal fees, could quickly pile up, especially for people who were on fixed incomes like the pension, making the whole process less appealing.
uncertain
process → say → pension
He said many people were put off by the thought of having to leave the communities they were connected to, or by the prospect of apartment living which carried strata fees they may not be used to.
uncertain
they → say → fees
"Smaller developments like duplexes don't require strata fees," he said.
asserted
he → require → fees
"And in the outer suburbs where you've got low density, we should be making the step towards higher density or medium density by building those kind of appropriate housing options that people understand better."
Calls for major planning overhaul
Urban planning expert Rachel Gallagher shared that sentiment, and said a lack of suburban housing diversity was the major issue keeping people from downsizing.
That's despite moves being made to better unlock that missing middle, or medium density development.
asserted
That → get → development
Changes to minimum lot sizes, like recent tinkering in Brisbane in some areas, could incentivise that, Dr Gallagher said.
uncertain
Gallagher → incentivise → that
But she warned it needed to go further, calling for a complete rethink and overhaul of the city's low density residential zones — areas which mostly only permit detached housing.
"
asserted
which → warn → housing
As a planner, I like to judge things by their impacts," she said.
asserted
she → like → impacts
"It makes no sense to me that you can't build a duplex, but you can build a seven-bedroom house with a 10-car garage.
asserted
you → make → garage
"You should also be able to build small-scale apartments, duplexes, townhouses on those lots."
asserted
You → build → lots
Brisbane City Council said it's not considering scrapping minimum lot sizes to bring medium density development into low-density suburbs.
asserted
it → say → suburbs
“Our approach is to support more housing density in well-located areas close to jobs, services and public transport, while protecting Brisbane’s low-density suburbs and bushland areas.”
asserted
approach → support → suburbs
The Aporia
