Govt set to encourage retirees to downsize

Older Australians will be encouraged to downsize to smaller homes in a bid to ease housing affordability concerns.

The federal government wants to provide incentives to retirees to sell, amid forecasts it could free up more than 50,000 homes a year, The Australian reports on Saturday.

It will reportedly introduce more lenient rules to the age pension asset test and the caps on superannuation as part of the budget package.