We can’t stop talking about housing affordability right now and all eyes are on how the Federal Government will tackle the issue in its May budget.
On Tuesday, while speaking to Sky News, the Assistant Treasurer Michael Sukkar refused to rule out allowing people to dip into their superannuation in order to fund the purchase of their first home.
So, if you’re one of the many Australians who are desperately looking for a way into the housing market, should you be cheering this policy idea or not?
This isn’t the first time we’ve heard this
Superannuation became compulsory in 1992 and ever since then it’s been suggested that people should be allowed to use their contributions to buy a house — in fact, the policy had bipartisan support at the 1993 election.
The idea was later dumped by prime minister Paul Keating, but in recent years a number of prominent politicians have suggested it could make a comeback.
They include then treasurer Joe Hockey in 2015 and Deputy Prime Minister Barnaby Joyce just last year.
Both the current Prime Minister and Treasurer dismissed the idea in the past, with Malcolm Turnbull calling it “thoroughly bad” in 2015. Labor isn’t on board, either.
It’s easy to see the appeal
People might already have enough money for a house deposit — it’s just that they’re not allowed to touch it because it’s tied up in their superannuation fund.
And from the Federal Government’s perspective, it’d essentially be giving people their own money which means it could solve the affordability crisis without taking a hit to the budget (for now, at least).
Top Comments
Immigration needs to be halved. Foreign investors need to be slugged with a tax. Negative gearing needs to be limited to five properties. Interest rates need to rise so house prices can come down.
At the moment property is going gang busters because all the things I've mentioned works against so at the moment it makes buying property desirable.
People's wages are not going up. So the difference wages to home property prices is unrealistic. The government needs to stop good jobs going overseas and slug companies with a tax if they do so.
If we start using superannuation to buy properties, it defeats the purpose of superannuation which is to fund our retirement. Back on the pension again. Bad news for the government. Also this move could bump up house prices even more.
The government needs to properly tax corporations. They're skirting around the elephant in the room and trying to take aim at the little people.
There is a lot the government can action on but is too lazy to do so.
All it would do is create a generation with not enough superannuation for retirement.
The average Australian (i.e.: the vast majority) has never had enough superannuation for retirement. That is the great 'super' myth.