Minister pours cold water on MP’s extreme plan to raid super for housing
Superannuation Minister Jane Hume has pushed back on a government backbencher’s extreme plan that would make Australians sacrifice their super to buy a house.
The fundamentally flawed plan would jack-up house prices, inflate mortgages for first home buyers – leading them to retire with far less and become far more reliant on the aged pension.
The taxpayer would then be forced to pay billions more into the aged pension, which could lead to higher taxes.
Minister Hume dismissed the proposal when asked during an interview on Sky News yesterday:
Minister Hume: “At this stage there is no plans (sic) 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”
Peter Stefanovic: “That’s a no then, that’s a no then minister.”
Minister Hume: “Your words, that’s right”
Now the Treasurer and the Prime Minister should also dismiss this dangerously flawed proposal.
Minister Hume joins a chorus of economists, housing experts, the RBA, Retirement Income Review panellist who have cautioned against raiding super for housing. Throwing billions from super onto the housing market would be like adding fuel to a bonfire – it would supercharge house prices.
Under the proposal young people would unfairly have to commit their super savings to keep up with the property prices, many others would remain priced out. They would be paying higher prices all at the expense of their super.
Unfairly the taxpayer would have to pick up billions more in the aged pension cost, as a generation retires with far less super saved.