Superannuation Minister Jane Hume has denied the government is considering a backbencher's proposal to allow first home buyers to withdraw retirement savings for housing deposits.
Liberal MP Tim Wilson has previously urged for early super access to allow young people to enter the housing market, but Senator Hume, Minister for Financial Services, Superannuation and the Digital Economy shut down the idea when asked about it.
“At this stage there is no plan to allow Australians to access a deposit for their home through superannuation,” Ms Hume commented during a Sky News interview.
“Superannuation is to save for your retirement, we want to make sure Australians have the best retirement outcomes possible.”
“That’s a no then, that’s a no then Minister,” presenter Peter Stefanovic retorted.
“Your words, that’s right,” she answered.
Industry Super Australia has warned allowing superannuation savings to be funnelled towards the housing market would supercharge house prices and leave young people with smaller balances to retire on.
Bernie Dean, chief executive of Industry Super Australia commented Treasurer Josh Frydenberg and Prime Minister Scott Morrison should back up the minister in pouring cold water on Mr Wilson’s proposal.
“This proposal would jack-up house prices, inflate young people’s mortgages and add billions to the aged pension, which taxpayers have to pay for,” Mr Dean said.
“But the MP pushing this proposal says the house 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 these young Australians, who under his scheme, will be staring down the barrel of hugely inflated mortgages without any super savings to fall back on.
“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.”
Stimulate new ideas. Stimulate new thinking. Top up your CPD and hear from industry experts with InvestorDaily’s Knowledge Centre. Keep up to date with the latest trends and reforms, all while adding to your CPD. Explore the knowledge centre Knowledge Centre now.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].
The outgoing chair of an industry fund has called for more trustees to put member interests first, backing the prudential regulator’s focu...