The Coalition’s latest brain fart to allow first home buyers (FHBs) to access their superannuation to fund a housing deposit has quickly been shut-down by the funds management industry and Labor. From The Australian:
Industry super funds yesterday warned against the plan, saying it would reduce retirement savings, drive up housing prices and do nothing to address supply.
“In the housing affordability debate, the focus should be on land release, regulation and tax subsidies that fuel investment in existing property rather than new buildings,” Industry Super chief economist Stephen Anthony said.
“Allowing first-home buyers early access to their super will set back a retirement income system that is still struggling to fully deliver”…
“This stupid idea … would wreck the retirement incomes of many hundreds of thousands of Australians,” [Opposition Treasury spokesman Chris Bowen ] said.
“It’s hard to think of a better way of reducing people’s retirement incomes, than eating away superannuation in the early years.”
It’s worth pointing out that Malcolm Turnbull in 2015 labelled the proposal “a thoroughly bad idea”. From The Guardian:
“My own view is that would be a thoroughly bad idea,” Turnbull said, in response to questions after the address.
“It’s not what the superannuation system is designed to achieve. Housing affordability is a big issue in Australia but as we’ve demonstrated over many studies over many years, this is a supply side problem.”
The question now is: will the Prime Minister perform another 180-degree turn and support what he once opposed?
