Australia has 13 million spare bedrooms. Is there a better use for them? | TawarRazaghi
The number of spare bedrooms increased from 12.7 million in the 2017-2018 financial year to 13 million in 2019-2020 financial year.
The combination of the family home exemption from the aged pension asset test, stamp duty and planning restrictions are preventing empty nesters from downsizing, doing little to help alleviate housing affordability and free up homes for growing families. Centre for Independent Studies chief economist Peter Tulip said the NSW government’s proposed stamp duty reforms would help remove some financial disincentive to downsize.“Tax on [property] turnover means people are in houses that don’t suit their circumstance. So, we would get a better allocation of houses if we replace stamp duty with land tax,” Tulip said.
“They want to move somewhere nearby, but they’ve prevented all the housing alternatives that would give them that option. “It’s not a good allocation of housing if you have some people in overcrowded homes and then people with spare bedrooms.” He said many delay downsizing because older Australians prefer to age at home rather than enter an aged care facility.