JASON CLARE MP
SHADOW MINISTER FOR HOUSING AND HOMELESSNESS
SHADOW MINISTER FOR REGIONAL SERVICES, LOCAL GOVERNMENT AND TERRITORIES
MEMBER FOR BLAXLAND
STEPHEN JONES MP
SHADOW ASSISTANT TREASURER
SHADOW MINISTER FOR FINANCIAL SERVICES
MEMBER FOR WHITLAM
In the last few weeks, a number of Liberal MPs have been desperately trying to sell the idea that people should raid their superannuation to buy a home.
Australians aren’t stupid. They can smell a con a mile away. And a new report out today proves this Liberal backbench idea is a massive con job.
Instead of helping young Australians buy their first home, it will just make it harder.
The report from Industry Super shows using super to buy a home will dramatically drive up prices.
In places like Sydney, this report shows young home buyers would be about $94,000 worse off.
This would be horrific for first home buyers.
You don’t make housing more affordable by making it more expensive.
Tax payers would also be worse off by this bad backbench idea.
The report also finds for every $1 taken out of super by someone in their 30s, taxpayers will have to pay up to $2.50 more in increased pension costs.
The only winners from this bad backbench idea would be the sellers and the big banks.
Young homebuyers would have to borrow more money to buy a home and the banks will make money selling bigger mortgages.
The adults in the Liberal Party know what this report says is on the money. They have said the same thing:
“It would increase demand for housing and, all other things being equal, would actually drive up house prices by more. That is, it would reduce housing affordability, including for first home buyers.”
“If all a government does is try to pump further liquidity into the residential housing market, inevitably all you do is push up housing prices.”
“It’s not what the superannuation system is designed to achieve. Housing affordability is a big issue in Australia but as we’ve demonstrated over many studies over many years, this is a supply-side problem.”
“We went through all this back in the mid-90s. We had a look at it. Because we thought superannuation should be used for retirement savings, we decided not to allow superannuation to be used for housing.”
We need to make it easier for people to buy their own home. This is not the way to do it.
Australians don’t deserve to turn up at an auction and get mugged by a few rogue Liberal backbenchers.
While the promoters of this scheme will benefit personally and the value of their own investment properties will be boosted, first home buyers will suffer.
FRIDAY, 26 FEBRUARY 2021