The proposal would:

• Extend the assets test exemption for principal home sale proceeds from 12 months to 24 months for income support recipients.
• Change the income test, to apply only the lower deeming rate (0.25 per cent) to principal home sale proceeds when calculating deemed income for 24 months after the sale of the principal home.

The Department of Social Services and the Department of Veterans’ Affairs (DVA) are to absorb all departmental expenses.

The proposal would be ongoing and have effect from 1 January 2023.