The federal authorities is searching for to release housing provide by encouraging pensioners to downsize their houses.
In laws which shall be tabled in parliament on Wednesday, the federal government will give pensioners a 24-month exemption on the asset take a look at on house sale proceeds, reducing the deeming price from 2.25 to 0.25 per cent each year.
The deeming price is used to find out pension quantities.
Pensioners are presently exempt from the social safety belongings take a look at for as much as 12 months after they promote their house to buy or construct one other house, though there's an additional 12-month exemption obtainable in extenuating circumstances.
That further 12-month interval will nonetheless be obtainable beneath the proposed laws.
The federal government mentioned the 24-month exemption will permit older Australians extra time to construct, rebuild, restore or renovate a brand new house earlier than their pension is impacted.
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"We do not need folks laying aside downsizing to a extra appropriate house as a result of they're involved concerning the affect it might have on their fee price and total earnings," Social Companies Minister Amanda Rishworth mentioned.
"These modifications will give pensioners extra flexibility to discover a appropriate new house and it'll hopefully release bigger housing inventory for youthful households who want it."
Greater than 8000 pensioners downsized their houses final yr, and the federal government is hoping the proposed modifications to the asset take a look at exemption would see that quantity improve.