Lonely retirees who rent spare rooms to young people locked out of affordable housing shouldn't be penalised by the tax office, the NSW premier says.
The idea to fill thousands of empty rooms in Sydney homes by electronically matching older homeowners with younger renters was floated over the weekend by SGS Economics and Planning.
"I think this has merit and is at least worth discussing," Dominic Perrottet said on Monday.
"This is another great example of economic efficiency and great social outcomes being two sides of the same coin."
But he urged the federal government, which controls income taxation and pensions, to ensure tax rules would not deter this type of arrangement.
Some provisions already exist in the income test for age pensions, allowing income from board, and some tax offsets are available for seniors earning additional income.
"With this in mind, I'd like the federal government to take a look at whether the current tax rules are fit for purpose for this type of arrangement," he said at a summit organised by think-tank Committee for Sydney.
"After all, it would make better use of the housing stock that's there, it would give younger people another affordable housing option, (and) also work to solve an unspoken issue in society, particularly for older people, and that's loneliness."
The SGS plan would use a mobile app to match landlords and renters for rooms at below-market rates.
It comes as cost-of-living and housing loom as key issues in next month's state election.
Survey results released on Monday suggested two in five Sydneysiders were "very concerned" about living costs, particularly women, renters and those living near Parramatta.
Those who frequently feel lonely are more likely to be concerned about the cost of living.
The Life in Sydney 2023 survey was commissioned by the Committee for Sydney, run by Ipsos and polled 1000 people living in Greater Sydney.
