It defies all logic that while creating policies to ease the housing crisis, the government is instead managing to make it worse, but that is what’s happening with the aged care reforms.

While a big part of fixing the housing crisis comes from building new homes, the other part is freeing up existing homes – which is quicker and cheaper and enables to people to live in areas with established infrastructure.

Around 70,000 Australians move into aged care each year, a figure that is set to grow substantially, and yet the aged care reforms create financial barriers to selling these homes.

Aged care reforms were intended to improve a flawed system, but in fact, they may have the opposite effect.Credit: Dominic Lorrimer

The aged care reforms will cap the value of the family home included in the means test at $206,039, but other assets such as bank accounts and........

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