Thursday, 2 August 2012

Family Assist Part S

Family Assist Part S (carrots and sticks), would allow a sole pensioner be able to sell up their PPOR and the proceeds remain asset test free for the pension test, if they live with another 'family' and put a majority of their investments into Govt Bonds or an approved govt savings account. They could also park the capital into a mortgage offset account in their name with the interest going to the couple/family mortgage. The rent the 'family' receives would be tax free and the 'family' would as get a $5k govt grant, to help house the pensioner.

At the same time a Land Tax needs to be introduced to create the 'stick'.

The 'family' could be young FHB and need not have a direct family relationship with the pensioner.
It will be a bad refelection on our society if we allow 28% of our homes to end up as lone occupants. Now at approx 24%.  Ageing in place will be a social disaster. Isolation and loneliness is a state we should find unacceptable for an advanced society.

From the ABS link on the above thread, Figure 7.48 shocks me.....

We certainly have the spare bedrooms for Family Assist Part S

Housing utilisation
All households (000's)
  • More bedrooms needed 218.5
  • No extra bedrooms needed 1491.0
  • 1 bedroom spare 2857.1
  • 2 or more bedrooms spare 3359.5
All households 7926.2

March 18, 2013 - Update : Was on the ABC Radio today (Sunshine Coast) and the idea was received well.

September 21, 2013

''Mary'', who owns the house, is in her late 80s and has lived there alone since the death of her husband several years ago. In popular parlance, she is the archetypal little old lady rattling around in the old family home. In the language of public policy and economics, Mary is an ''over-consumer'' of housing and her choice of dwelling is ''inefficient''. Put another way, she is helping to reduce supply and inflate prices.
The number of older Australians who live alone in large homes is startling. An analysis of 2011 census data reveals that of homeowners aged 70 and over who live alone, 62 per cent have a house with three or more bedrooms. That adds up to 238,078 houses with at least three bedrooms occupied by just one person. Among houses owned by older couples (with at least one partner aged over 70), 82 per cent - or 332,752 houses - have at least three bedrooms.

Good plan, although they may still end up living alone, which to me is still a social issue.

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