Unable to subdivide, retirees forced to sell and relocate

Ineligible for pensions, unable to reduce their land holdings to a manageable size, and faced with substantial maintenance costs, owners of large blocks in Sydney's north-western outer suburbs are left with no choice but to sell and move away from the area.

Asset test

The federal government considers that land holdings greater than 5 acres are not part of a person's residential property when calculating eligibility for pensions. Such land holdings are counted as assets, able to be realised to provide for a person's retirement. In most cases, the value calculated for the portion of the lot greater than 5 acres is sufficient to reduce the age pension to zero.

No choice but to move

In Baulkham Hills, where for decades the council has prohibited subdivision of large holdings to 5 acre allotments, owners do not have the choice of selling off part of their land to fund their retirement. If they want to realise the asset counted by the federal government, they must sell their entire property, house included, and move.

Worse still, this same policy that forces them to sell up has created an acute shortage of smaller properties in the area. That means buying a smaller property in the area is not an option, forcing most to move out of the area, leaving behind a lifetime of memories and friends.

Council is out of step

It is unacceptable that the Baulkham Hills council imposes policy that is out of step with federal government legislation. The last thing residents want to look forward to during retirement is the upheaval of selling and moving – most, given the choice, wish to remain in the area.

If the council were acting as they required to under the Local Government Act – in the interests of residents and ratepayers – this alone would be sufficient justification for removing the ban on subdivision of large holdings to 5 acre allotments.

Section 232 of the NSW Local Government Act 1993 lists the roles of a councillor, as an elected person. The first is "to represent the interests of the residents and ratepayers".

In the outer northwest of Baulkham Hills, those interests are not being represented. For decades, residents in the area have made it unmistakably clear to councillors where their interests lie. Councillors have failed to support those interests.

In doing so, they have lost sight of the reason they exist – to serve the community, not dictate to it.