Another notable figure has publicly joined the opposition to Joe Hockey’s proposal to allow young Australians to raid their superannuation nest eggs to purchase their first home, with former Treasury Secretary, labeling the plan unnecessary and contrary to the aims of the retirement savings system. From The AFR:
“The idea of superannuation was to provide a structured tax concession in addition to the family home, it wasn’t and never has been designed to support people to buy a home”…
“Owner-occupied housing and rental housing both benefit from very substantial concessions, notably capital gains tax. They are also exempt from the aged pension assets test so for those reasons it’s evident that housing is strongly tax preferred.”
Henry also called to ban superannuation funds’ ability to leverage into assets, such as direct property:
“The policy argument for extending the concessional superannuation taxation arrangements to leveraged investments, especially in real estate, is not strong”…
Time to back down, Joe, before your credibility is undermined, much like Tony Abbot’s was under his flawed paid parental leave proposal.
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