Don't put all your eggs in the housing basket
Raiding super to fund housing is not a great idea, say various experts. Image – Canva.
  • Minister pours cold water on MP’s extreme plan to raid super for housing
  • IndustrySuper Chief Bernie Dean agrees
  • Backbencher had suggested people should sacrifice super to buy property

Superannuation Minister Jane Hume has pushed back on a government backbencher’s plan that would make Australians sacrifice their super to buy a house.

In the view of a growing chorus of experts, this is a “fundamentally flawed plan” that would “jack-up house prices [and] inflate mortgages for first home buyers” leading them to retire with far less and become far more reliant on the aged pension.

Minister Hume dismissed the proposal when asked during an interview on Sky News yesterday.

“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,” said Minister Hume.

Peter Stefanovic: “That’s a no then, that’s a no then minister.”

Minister Hume: “Your words, that’s right.”

Minister Hume joins economists, housing experts and the RBA who have cautioned against raiding super for housing. Throwing billions from super onto the housing market could add fuel to some already rising house prices. they argue.

“The minister pouring cold water on this idea is a really positive step, now the Treasurer and the PM need to back her up and show that the government is not beholden to extreme elements in their party room,” said Industry SuperFunds Chief Executive Bernie Dean.

“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.”

Bernie Dean
Bernie Dean, CEO of IndustrySuper. Image – website.

“But the MP pushing this proposal says the house price hike is ‘secondary’, it might be secondary for politicians who have multiple investment properties and are pocketing 15% super, but it sure isn’t for those 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,” he said.

You May Also Like

Westpac sees rates hitting 4.1 per cent and property prices falling further

Westpac said, “2023 will be another challenging year, particularly as the RBA continues to ratchet interest rates higher.”

Home loan hacks: four way to save money on your mortgage

With interest rates expected to keep rising, Compare Club has tips to ease the mortgage pain.

CoreLogic’s guide to navigating a looming ‘fixed-rate cliff’

Many borrowers will feel mortgage pain when they next refinance

How much does it cost to move house?

From cleaning fees to moving services, the costs of moving houses can add up fast

Experts Corner by The Property Tribune

Ko & NPA partner to launch several co-owned luxury properties at Mermaid Beach, Gold Coast

Ko's partnership with NPA Projects provides more opportunities to co-own off-the-plan holiday residences, including exclusive Gold Coast properties

Continue reading

Top Articles

Expert tips on how to be a successful property investor

Property expert and buyer's agent, Lloyd Edge, shares his insights.

Australian commercial property update: Industrial and tourism assets lead the pack in trying times

Commercial assets have faced volatility recently, driven by financing changes and demand fluctuations from institutions and funds.

WA has emerged as a property investment hub, and why that's a good thing

Eastern investors chase Perth's affordability, doubling the distance between home and investment in 2023, reveals MCG research.