Granny flat CGT exemption submission

Summary: Older people living in large homes may face challenges as they age due to mobility and accessibility issues. Downsizing is promoted as a solution, but barriers such as housing availability and costs hinder this practice. A CGT exemption is granted for granny flat arrangements if they are in writing, but concerns exist about protection from financial abuse. The draft amendment lacks protection for individuals entering granny flat agreements, especially those with diminished capacity. Standardized agreement templates and independent witnesses are suggested to enhance protection for parties. Without proper oversight, written agreements may not adequately protect older individuals from exploitation. An example illustrates potential risks of entering granny flat agreements without proper safeguards in place.