Penalties for downsizing from the family home to a retirement village:

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The Property Council argues that a pensioner selling the family home to downsize, creating a surplus cash pool, penalises their pension position and this is unfair and a negative incentive.

The 2013 Federal budget allocated $112M to trial excluding from the pension penalty people downsizing who have owned a home for 25 years.

The Property Council argues this is too restrictive and should be varied to be open to all people aged 75+ and who are on full pensioners. They should be able to use the released funds to support health and living costs.