The federal government is set to introduce new legislation encouraging older Australians to downsize in a bid to ease the nation’s housing crisis.

The legislation would give people an extra 12 months to spend the proceeds of the sale, without affecting their pension.

It’s hoped it would free up homes for younger families.

Chief financial officer at the Real Estate Institute of Queensland, Dean Milton, said they welcome the principle of the scheme, but time will tell if it will be taken up.

“We will expect some pensioners or empty nesters will take the opportunity to sell and buy something smaller and easier to maintain and hopefully that will free up some housing stock for the young growing families in Queensland.”

He said the REIQ has lobbied in the past that they should be excluded from paying stamp duty when downsizing.

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