I've read of strategy that is being strongly pondered by Scott Morrison to reduce the currently massive disincentive for retirees to downsize their family homes. The plan is to reward those who downsize their home by allowing them to buy a lifetime annuity with the cash proceeds freed up, and for that annuity to be exempt from the Aged Pension Assets/Income test assessments. There is no net tax change for the government here due to CGT free status of famiy home anyway. There is hundreds of billions of equity to be unlocked here. The only cloud, and perhaps just as big of a roadblock, is the stamp duty issue, that the states will need to think of a plan (such as capping SD, or applying a SD tax free threshold for these pensioners. Benefits *Frees up land rich, underutilised homes. *Frees up large home for a family with kids, or site redevelopment into a higher level of density. *The annuity income stream, and newly found spending power of this pensioner class will boost economic activity throughout the country (Really great for the rural areas) This would be a great first step, Mr Morrison.