The Retirement Living Council (RLC) continues to advocate for much-needed reforms to support retirees moving into retirement villages, despite the lack of action in the latest Federal Budget.

While the average age of Australians entering retirement living has remained around 75 for years, recent national population data shows a significant increase in the number of people aged 75 and over, up by 9.13%, or 181,339 individuals, compared to last year. This highlights the urgent need for reform.

“We now have over 181,000 reasons for all governments to act,” said Daniel Gannon, Executive Director of the Retirement Living Council. “With these changes impacting housing and healthcare, the government should take this seriously.”

Unfortunately, the 2024 Federal Budget did not include reforms the RLC was hoping for, specifically to the Age Pension assets test and Commonwealth Rental Assistance (CRA) eligibility. These reforms would have helped older Australians access age-friendly housing by freeing up 59,000 homes and supporting nearly 100,000 retirees. Instead, Treasurer Jim Chalmers focused on the housing shortage, but the necessary changes to support seniors were overlooked.

“The Budget missed the mark. We will continue our push for these crucial reforms,” Gannon emphasied.

Currently, people living in retirement villages are considered homeowners for the purposes of the Age Pension test, which can make them ineligible for CRA if their contributions exceed certain thresholds. The asset test for homeowners is set at $314,000 for singles, while non-homeowners are assessed with a threshold of $566,000. This means that if a retirement village resident contributes more than $252,000 for their unit, they cannot claim CRA.

In contrast, land lease communities offer a more affordable alternative by avoiding stamp duty, deferred management fees, and council rates, and they allow residents to potentially qualify for CRA.

The Retirement Living Council is committed to continuing the fight for reforms that will help seniors access affordable and suitable housing.