It might be time to think about downsizing your home

Rachel Lane co-author of Aged Care, Who Cares? reported in the Age Newspaper on two separate pieces of legislation which were passed by the federal government, the combination of which is set to supersize the incentive for retirees to downsize their homes in 2023.

Of particular interest is Legislation which has been introduced with significant changes to the way the proceeds of your home are treated for calculating your pension while you are waiting to buy or build your new home. The changes affect both the assets and income test assessments and apply to people who sell their homes after January 1.

Under the assets test, the exemption period on the proceeds of the sale of your home – money that you intend to buy or build a new home with – will be extended from 12 months to two years. The exemption can be extended to three years in extenuating circumstances.

Downsizing decisions are complex, so it is best to seek advice from a specialist.

If you are looking to downsize, we would love to help with your property journey - Peter & Deborah