Garth Hamilton (Groom, Liberal National Party) Share this | Hansard source

I think it's appropriate to say: what a fantastic contribution from the new member for Bowman! Cometh the hour, cometh the man. This is exactly the type of legislation that you get a good feel for when you undertake the sort of ground-level connection with your community that he has so clearly done. I commend him for his doorknocking campaigns. This is how we get in touch with the people of Australia and really understand their needs. I look forward to many more scintillating contributions from him.

In general terms, there are four big points that I think the Social Services and Other Legislation Amendment (Incentivising Pensioners to Downsize) Bill 2022 addresses that are core tenets of why those of us on this side of the House do what we do. Firstly, I think it's unmistakable that this should be viewed within the context of the current housing crisis, which is spread across Australia. As previous speakers have alluded to, there is no silver bullet for solving that crisis, and any step taken towards it must be seen within that broader context.

One of the clear challenges that I've seen amongst the good people of Groom is that the housing market as it stands is actually quite limited in the options that it presents to them. Over a period of time, we've seen a growth in very wonderful and attractive four-bedroom, two-bathroom houses that push our suburban horizons out even further. However, unfortunately, these don't present the market with the options that people need. When we talk about downsizing—and this is clearly a need within our community—moving out to a four-bedroom, two-bathroom house further away from the city centre provides no benefit to people in their older age who want to have the support, the comforts and the services around them to be able to live their lives in confidence.

As part of that, it talks to the need for efficient markets—of course, that wonderful view that markets make their best decisions when they are presented with the most options. This bill very much plays a part in the broader solution that must be provided to the housing crisis: providing more options to the market, particularly to those who are looking to downsize and particularly to those in regional centres to whom the idea of medium-density housing simply hasn't been provided before.

I think it also must be viewed within the framework of two principles that the LNP hold dear: the right to private property and the absolute value of reward for effort. We must recognise that, when providing these solutions, we must maintain respect for the work that people seeking to downsize have done. They have invested and have built for themselves an ability to have a roof over their heads. This is to be commended in them, and they are to be supported. Whatever steps we take, we must make sure that we are not detracting from their efforts and are not, in their later years, reducing the reward that they should be seeking from a lifetime of contribution.

I think the final generalised theme is that of what the role of government is. The previous speaker brought this up. One of the great parts of this bill is that, when enacted, it will remove a barrier that currently exists. It's a barrier that makes it very hard for the decision to downsize to be taken. I think a very important role of government is, where possible, to seek and remove barriers to good decision-making. This speaks to the efficient market idea I spoke on previously.

But, within those frameworks, I very much support this bill to amend the Social Security Act 1991 and the Veterans' Entitlements Act 1986 to support pensioners and other eligible income support recipients during the sale and purchase of a new home. I do so because this builds on a body of work, begun while the coalition was in government, to give older Australians greater options and flexibility when it comes to downsizing. The sale of the family home can often be a large financial and emotional undertaking. It is often people's biggest asset, along with being the place where they have raised their kids. It's right that we give older Australians the time and the space to transition to a property of their choosing without penalising them financially.

I think it's important to acknowledge the concerns of local residents who I've spoken to during my time doorknocking, particularly in some of the inner suburbs of Toowoomba, where exactly these conditions that I've described exist. People have bought a home some 30 years ago and raised their children in it. It is not just a possession; it's part of their life story and something of emotional consequence to them. There is a fear that any step taken to persuade them to downsize may be to their detriment. I think it's important that we address that and be very clear that this bill is cognisant of those fears and is purely focused on providing more options.

I also speak in support of this bill today because it legislates a commitment that the coalition brought to the last election as part of our comprehensive housing policy. That suite of policies was created in the light of certain economic pressures that existed then, many of which continue or have changed—in some cases growing worse, sadly. It was also created in the light of the role that certain domestic policy settings across all three levels of government have played in creating the housing crisis that currently exists. I absolutely agree with the point that there is no silver bullet, but we must be able to look back and see why we are in the position we're in. There are roles that local, state and federal government have played in creating this, and I think that, by providing the option to downsize, we are addressing those on an even keel.

We are committed to extending from 12 to 24 months the existing asset test exemption for principal home sale proceeds which a person intends to use to purchase a new principal home. A further 12-month extension will continue to be available on a case-by-case basis in extenuating circumstances. I do point out the difficulties that exist in the housing market and how quickly houses are moving off market—sometimes not even being sold on market but moving quicker than someone can find one. So there is a significant advantage in increasing that period of time, allowing people more confidence that this will take place.

This commitment was to give seniors who are selling in the current property market greater confidence to downsize into something more suitable, while providing greatest confidence and certainty in their financial planning. As the Governor of the RBA has pointed out many times, confidence is going to be a key aspect of our success in negotiating the choppy waters that are ahead.

The coalition government also committed to ensuring a fair deeming rate by announcing a freeze on deeming rates at the current rates for two years. The coalition announced that the lower deeming rate would be frozen at 0.25 per cent, with an upper deeming rate at 2.25 per cent. This measure would see around 890,000 Australian having greater certainty about their fortnightly social security payments. This would benefit 450,000 age pensioners and around the same number of payment recipients with financial assets who are affected by deeming rates.

This bill is just another example, as the previous speaker, the member for Bowman, said, of Labor adopting very sensible coalition policies. The old expression is 'There is no plagiarism in politics'. Well, this is an absolutely clear case of plagiarism, but we accepted fully as the greatest form of flattery there is.

As I mentioned, these common-sense changes built on the coalition's strong track record of helping older Australians to downsize. In the 2017-18 budget, the coalition government first announced that those aged 65 or over could make a non-concessional contribution of up to $300,000 from the proceeds of selling their home into superannuation from 1 July 2018. With the benefit of hindsight, that was a very sensible measure that we are very lucky to be able to build upon here and now. The coalition further enhanced this measure by reducing the eligibility age for making downsizer contributions into superannuation from 65 to 60 years of age. And then, at the last federal election, the coalition announced that, from 1 July 2022, eligibility would be reduced to 55 years of age, further increasing the opportunity for older Australians to downsize—another policy that is now on Labor's books.

There may be some in this chamber who are closer to that age bracket than I am, and I acknowledge their tenure and fantastic service. But it is important to see that this is a growing need. The people who need this help are a growing group within our community. This is not something that is going away. This is not a problem that is reducing in the immediate or medium term. This is a growing concern for us, hence the actions that the previous government took.

There was a fantastic uptake of this initiative, and a great boost to the super savings of older Australians. From 1 July 2018, when it started, to the end of January 2022, under the coalition, 36,800 individuals contributed $8.9 billion to their superannuation under this measure. This is a clear demonstration that, when good policy is developed and enacted, Australia responds. I think a clear sign of having good policy in place is that we get the rewards we want. This is not about numbers on a page, but rather that people who needed this support, people who needed this help, have taken up the option and now are in a better situation. They now have greater super savings in place. They are better positioned to weather the coming storms.

This support for downsizers has also unlocked a stock of family homes for younger people. Whilst the focus of many of the previous speakers' comments have been on how we help older Australians downsize, the other side of that is what it does for younger Australians. It allows them a broader property market to look into. With empty-nesters moving into smaller homes or apartments that better suit their future needs, it means that more four-bedroom, two-bathroom homes in the suburbs of Toowoomba, Oakey and Pittsworth are now available for first home buyers.

I was surprised to find advocates for this kind of housing transition in our local school principals. That's because there are a number of local state primary schools in my electorate who have had to completely ditch their catchment areas, despite having been put some 30 years ago in thriving hubs of young families. The kids have grown up and gone, and the houses still remain in the ownership of the parents. Unfortunately, these school catchment areas now have no kids in them to bring into the schools, so they're having to open enrolments across the city.

Instead of suburbs like Centenary Heights, Middle Ridge, Wilsonton or Harristown being full of school-age children, families are now more likely to be found in the newly built developments in Glenvale or Kearneys Spring. Whilst those are fantastic suburbs for people to be investing in and raising their children in—they're large spacious blocks, with beautiful crisp, clean Darling Downs air—there aren't the facilities around them that families need on hand. The schools aren't there. The pharmacies and the shops aren't there as yet. So, whilst there is great future value in these suburbs, what's important is that families are growing up without those services around them that they need. And, where those services do exist, they currently aren't supported by the population that they require.

We can't expect that everyone will want to move into an over-50s lifestyle village, of which we have an abundant and wonderful selection, or even out into the conveniently located suburbs. This is why I've been such a passionate advocate in my local area of the Railway Parklands project, the funding for which I was very proud to fight for and secure under the South East Queensland City Deal. This is a fantastic project that provides the opportunity for mixed-use—commercial and residential—medium-density housing right in the heart of Toowoomba's CBD. It's a fantastic opportunity for people who want to downsize and who want to take the opportunity of this exact bill to find for themselves a place where they can downsize, a place that they can live, right in the heart of Toowoomba's CBD. There's of course the other benefit that goes with this, which is what it will do for local shop owners, who are tremendous advocates for us opening up this housing in the CBD. This means more foot traffic for our local businesses, and—as the member for Riverina knows well—regional towns require that foot traffic. We want to keep our thriving CBDs going along. I commend the bill to the House.

See this speech in context