Retirement
ISA applauds Minister Hume for opposing super for a home plan
The government has no immediate plans to allow Australians to access their superannuation to buy a home, Jane Hume has confirmed, despite ongoing calls from backbenchers.
ISA applauds Minister Hume for opposing super for a home plan
The government has no immediate plans to allow Australians to access their superannuation to buy a home, Jane Hume has confirmed, despite ongoing calls from backbenchers.
Minister for Superannuation Jane Hume has pushed back on backbenchers’ plan that would enable Aussies to access their super savings to purchase a house.
“At this stage, there is no plans to allow Australians to access a deposit for their home through superannuation … superannuation is to save for your retirement, we want to make sure Australians have the best retirement outcomes possible,” Ms Hume told Sky News last week.
Welcoming Ms Hume’s announcement, Industry Super Australia referred to the backbenchers’ push as “fundamentally flawed”, arguing that it would jack up house prices and inflate mortgages for first home buyers.
“The minister pouring cold water on this idea is a really positive step. Now the Treasurer and the PM need to back her up and show that the government is not beholden to extreme elements in their party room,” ISA chief executive Bernie Dean said.
Calling for “sensible” solutions, Mr Dean warned that a further spike in house prices would be catastrophic for new buyers.
“The MP pushing this proposal says the house price hike is ‘secondary’ — it might be secondary for politicians who have multiple investment properties and are pocketing 15 per cent super, but it sure isn’t for those young Australians who, under his scheme, will be staring down the barrel of hugely inflated mortgages without any super savings to fall back on,” Mr Dean opined.
According to him, boosting the supply of affordable housing should form part of the government’s focus.
“We need sensible solutions, like boosting the supply of affordable housing which will bring prices down and get young people into a home in a way that doesn’t lumber workers with higher taxes in the future,” Mr Dean said.
But ISA and Ms Hume are not the only parties opposing the backbenchers’ plan, with both housing experts and the RBA cautioning against raiding super for housing.
According to resisters, under the proposal, young people would have to commit their super savings to keep up with the property prices, and many others would remain priced out.
About the author
About the author
Superannuation
Aware Super takes on Australia's gender retirement gap, aiming for financial equality
Aware Super, one of Australia's largest superannuation funds with a 70 per cent female membership, is on a mission to close the gender gap that sees women retire with 30 per cent less super than men ...Read more
Superannuation
Age Pension increase prompts Australians to review their finances
The increase in the Age Pension, which takes effect today, should serve as a prompt for many older Australians to ensure they're maximizing their income as cost-of-living pressures persist, according ...Read more
Superannuation
Retirement reimagined as Australian optimism meets inflation worries in 2023 super fund insights
The latest reports on retirement confidence among Australians present a spectrum of sentiments, with fresh data revealing surprising optimism in some quarters while exposing underlying concerns in ...Read more
Superannuation
Aussie retirees face a shortfall as ideal retirement nest egg doubles what super will deliver
As Australians look towards retirement, the desired superannuation balance that many believe will ensure a comfortable retirement has significantly outpaced what they are on track to actually save. Read more
Superannuation
Super funds eye 6.5% return in 2023, despite a rocky start
As the year draws closer to its climax, Chant West unveils its projection for super funds in what can only be described as a year of economic ebbs and flows. Read more
Superannuation
A deep dive into Australia’s superannuation system
Australia has a robust retirement savings system known as superannuation designed to provide financial security to Australians in their post-work years. Read more
Superannuation
50,000 super fund members impacted by data breach
Around 50,000 member records were impacted by the breach that took place earlier this month. Read more
Superannuation
Two super funds tipped to reach $1tn by 2040
KPMG has released the findings from a new review. Read more
Superannuation
Aware Super takes on Australia's gender retirement gap, aiming for financial equality
Aware Super, one of Australia's largest superannuation funds with a 70 per cent female membership, is on a mission to close the gender gap that sees women retire with 30 per cent less super than men ...Read more
Superannuation
Age Pension increase prompts Australians to review their finances
The increase in the Age Pension, which takes effect today, should serve as a prompt for many older Australians to ensure they're maximizing their income as cost-of-living pressures persist, according ...Read more
Superannuation
Retirement reimagined as Australian optimism meets inflation worries in 2023 super fund insights
The latest reports on retirement confidence among Australians present a spectrum of sentiments, with fresh data revealing surprising optimism in some quarters while exposing underlying concerns in ...Read more
Superannuation
Aussie retirees face a shortfall as ideal retirement nest egg doubles what super will deliver
As Australians look towards retirement, the desired superannuation balance that many believe will ensure a comfortable retirement has significantly outpaced what they are on track to actually save. Read more
Superannuation
Super funds eye 6.5% return in 2023, despite a rocky start
As the year draws closer to its climax, Chant West unveils its projection for super funds in what can only be described as a year of economic ebbs and flows. Read more
Superannuation
A deep dive into Australia’s superannuation system
Australia has a robust retirement savings system known as superannuation designed to provide financial security to Australians in their post-work years. Read more
Superannuation
50,000 super fund members impacted by data breach
Around 50,000 member records were impacted by the breach that took place earlier this month. Read more
Superannuation
Two super funds tipped to reach $1tn by 2040
KPMG has released the findings from a new review. Read more