The Federal Budget should be a boost for land lease and rental village operators.
The 1.1 million people receiving Commonwealth Rent Assistance (CRA) will receive a 15% increase in their fortnightly payment, with a large number of land lease and rental village residents receiving the payment.
Affordable seniors’ rental accommodation provider Eureka Group said in its FH23 Results in February that 95% of its residents in its 2,692 units were eligible for the Age Pension and CRA.
In reality, it is about $31 extra every fortnight from September, but is still welcome money in the pocket of residents.
The Property Council’s Retirement Living Council (RLC) has still got its hand out for a slice of Federal Government’s $10 billion Housing Australia Future Fund, which is yet to get the numbers to be approved in the Senate.
Build To Rent should also benefit from the Government’s second Budget with withholding tax reduced from 30% to 15% and capital depreciation increased to 4% from 2.5%. This may spur on companies like Lendlease and Mirvac. Again, will any village operator try their hand at Build to Rent?
Retirement village residents’ committees may soon be deciding whether to approve the operator’s plans to pay its staff something similar to the 15% extra for the majority of residential aged care workers.
With 1,360 retirement living jobs available on seek.com.au, retirement village operators really have no option but to seek 15% for its staff, who often do similar work as those in aged care.
The operators can’t afford to lose the staff – but whether the residents want to pay higher monthly fees with rising inflation lifting the cost of living, workers will have to wait and see.
