Oh yes there is an election coming up next month. It has barely made a ripple so far. We are being told that the present government will be returned "in a landslide". We can do nothing about this. It is what is going to happen.
Yes, it almost certainly will happen so why is the government also offering a one off concession to try and get older people to "downsize"Why do they want them to move out of their large homes into smaller homes and "free up" housing stock? Yes, there is a serious housing shortage but will this solve the problems?
It's unlikely. The offer sounds good, too good to be true. It is when you look at the detail you realise that, like many election promises, it is not nearly as good or as likely as it sounds. There are conditions and most of those conditions cannot be met very easily, if at all.
You have to be 60 plus. Fair enough and easily verifiable. Does that apply to just one of you or more than one if you have a partner? No doubt we will find out.
You have to be buying a smaller property. Well, that's the whole point isn't it? It should be easily verifiable. Does it apply to just the structure or the entire block? I guess we will find out.
You need to be actually selling your existing home, not passing it on to the children. Fair enough. Must it be sold on the open market or can you sell it to your child(ren)? Mmm...tricky one that.
And then the other crunch item, the one which will probably prevent more than a very few actually taking the offer up. You need to be buying a "new or off the plan" build. That is supposedly designed to stimulate the building trade. It doesn't actually need stimulating. It is failing because of the lack of qualified tradespeople and supplies, including land supplies. No amount of downsizing sweeteners will solve that problem.
Another issue, one which has not been raised, is where is this new housing? Do older people actually want to move to these locations? I might be wrong but older people who have lived in one area for years, sometimes a lifetime, often have no desire to move away. It is not just the comfort of familiarity but the convenience of the other services they have set up and require. It is their friendships, even just the casual ones. They can be particularly important in a world where children have moved interstate or even overseas. Or it might be that their children have remained close to home and they now need to be babysitters for grandchildren. In an increasingly on-line world however it might be that the actual world has become increasingly important to them.
Do people want to lose all that? Would they do it for a supposed tax break which might cause their pensions to drop anyway? I doubt it. It is one of those "sounds good until you think about the consequences" sorts of policy that only come up at election time.