Nationals Leader David Littleproud backs stamp duty cuts for empty nesters looking to downsize

Nationals Leader David Littleproud has thrown his support behind calls to increase incentives for older Aussies looking to downsize.

Nationals Leader David Littleproud has said calls to slash stamp duty for older Australians looking to downsize their living arrangements “has merit”.

This comments come after ING Australia chief executive Melanie Evans said there needed to be more policy to incentivise empty nesters to sell their family homes which would free up housing stock in competitive markets.

Speaking to the Australian Financial Review Banking Summit on Tuesday, Ms Evans said it was “an opportunity lost” if governments don’t look at using policy “to get a more productive use of housing stock”.

“If we always put barriers in front of people downsizing, we’re not going to release the existing stock,” she said.

A banking chief executive has called for governments to incentivise downsizing among older Australians as a way to boost housing stock. Picture: NewsWire/ John Gass

While stamp duty taxes is technically the remit of state governments, Mr Littleproud appeared to support the policy.

“I think it has merit. We do it for first homebuyers, why wouldn’t we allow those who want to get out and downsize to have the stamp duty exemption,” he told Sunrise on Wednesday.

“We are pretty simple, we control migration, bring the people in that can build homes, not dog groomers and martial arts instructors, and we’re going to ban foreigners competing with you on Saturday at an auction to give people hope and buy time to build some more homes.”

However, rules to stop foreign investors buying established homes are set to come into place from April 1, with Labor enacting a two year crack down.

The ban will affect temporary residents and foreign-owned companies, however New Zealand citizens and spouses of Australian and Kiwi citizens and permanent residents will be exempt.

Nationals Leader David Littleproud said tax incentives to encourage downsizing in older Aussies ‘had merit’. Picture: NewsWire/ Martin Ollman

However Housing Minister Clare O’Neil said “stamp duty taxes are a matter for state governments”.

Instead she pointed to Labor’s Housing Australia Future Fund to build 1.2 million by mid-2029.

“We’re helping renters get a better deal and getting more Australians into home ownership,” she said.

“I want to contrast that with the Opposition, coming into an election here, I want people to understand that Peter Dutton’s set of housing policies will build fewer homes in our country and going to make those homes more expensive.”

Tax concessions for downsizers has previously been backed by the NSW Opposition, after former Liberal premier Dominic Perrottet attempted to introduced an alternative to the hated tax by allowing first home buyers to instead pay an annual land tax.

Current NSW Opposition Leader Mark Speakman has also put forward stamp duty exemptions for senior Aussies looking to sell their family homes.

Originally published as Nationals Leader David Littleproud backs stamp duty cuts for empty nesters looking to downsize