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.
