The Coalition can’t decide if using super for a deposit is a good option
With the budget due to be released next month, even MPs within the Coalition can’t agree on the best way to tackle housing affordability.
Housing affordability has been the topic of many a heated discussion ahead of next month's release of the federal budget, with treasurer Scott Morrison set to introduce policies to help new home buyers break into the market. One of the most talked-about proposed policies is a measure that would allow young people to tap into their super to help pay for their home loan deposit.
The proposed initiative has had a mixed response, with the super industry and some MPs calling the idea irresponsible. Nationals MP Andrew Broad has spoken out against the plan.
“Using superannuation to address housing affordability for first home buyers is a lazy response to the problem,” Broad tweeted.
However, it seems, according to The Australian, that there are some MPs within the Coalition that support the policy, with senator Matt Canavan and former Prime Minister Tony Abbott both saying that they agree with the idea.
“This is, I think, a legitimate idea," Canavan told ABC Radio. "It’s had support from people like Paul Keating in the past, it’s used in other countries, it’s something we should certainly consider as a government."
Abbott told News Corp that superannuation was the people’s money, not the government’s, and he argued that potential homebuyers should be able to access the funds.
“Along with measures to ease demand, giving homebuyers access to their super would help re-weight the odds in their favour,” Abbott said.
Outside the government, there have been concerns from some economists that it could cause already inflated house prices to increase further, with Chris Richardson from Deloitte Access Economics telling The Australian that he thought prices could rise by as much as 1%.
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