Change will benefit retirement villages
Peak body says 'capturing retirement villages in these reforms would have been an unforgivable own goal'.
FUTURE retirement villages will be protected after the Federal Government makes changes to negative gearing reforms.
According to the Retirement Living Council, the original draft legislation had the potential to cripple future retirement village developments.
A new Bill introduced to Parliament this week now includes a specific exemption for retirement villages and residential aged care homes.
RLC executive director Daniel Gannon said the exemption removed a significant threat to future age-appropriate housing supply at a time when demand is surging and industry construction confidence is weakening.
“At a time when Australia desperately needs more homes, capturing retirement villages in these reforms would have been an unforgivable own goal,” Gannon said.
“We already have 27,000 registrations on retirement village waitlists across Australia, while aged care development is going backwards, with more than 3000 planned aged care beds reportedly shelved.
“With demand surging and development confidence already on shaky ground, another tax impost could have been the death knell for projects already struggling to get off the ground.
“We can’t afford to make the housing older Australians desperately need even harder or more expensive to build.”
Without this negative gearing exemption, retirement village operators faced higher financing costs, less investment in existing communities and new barriers to building the villages Australia needs.
The government’s legislation now proposes to amend the provision identified by the RLC, expressly recognising the distinct operating models of retirement villages and residential aged care homes.
“Robbing Peter to pay Paul isn’t housing reform. We can’t make it easier for younger Australians to buy a home by making it harder for their parents and grandparents to move out of one,” Gannon said.
“Retirement living is one of the few forms of housing that benefits both generations.
“It gives older Australians more housing choice while often freeing up established family homes for younger families and first-home buyers.”
