A SHORTAGE of suitable smaller properties is a bigger barrier to older homeowners downsizing than stamp duty, according to analysis used to rule out a tax holiday.
Treasury Minister Alan Maclean and Housing Minister Malcolm Ferey jointly decided against including a stamp duty reduction for Islanders moving to smaller homes in the proposed government Budget for 2027–2030.
Senator Maclean said there was insufficient evidence that the benefits would justify the loss of tax revenue.
He explained that ministers considered advice from officers, housing-market conditions and the potential impact on public finances.
They focused particularly on whether a concession would encourage enough households to move to free up more family-sized homes.
“The analysis indicated that stamp duty is not generally regarded as the principal barrier preventing older homeowners from right-sizing,” said Senator Maclean.
“Rather, the limited availability of suitable downsizing accommodation remains a more significant constraint.”
The government also examined how much stamp duty revenue would be lost and concluded there was “insufficient evidence that a stamp duty holiday would deliver benefits proportionate to its fiscal cost”.
Senator Maclean said ministers would continue considering measures other than tax concessions to help Islanders move to more appropriately sized homes and improve movement within the housing market in future budgets.
