The Association of Superannuation Funds of Australia (ASFA) is disappointed to see Australia’s world-class superannuation system used as a political football in the upcoming Federal election, and erroneously sold as a silver bullet solution to Australian’s complex housing crisis.
In a speech given to the Sydney Institute on Tuesday night, Liberal Senator for New South Wales Andrew Bragg doubled down on the Coalition’s policy that allowing young Australians to withdraw super would improve their access to the housing market.
“After having this proposal soundly rejected at the last Federal election, Senator Bragg has brought back the same policy which will leave young people behind and entrench intergenerational inequality,” said ASFA CEO, Mary Delahunty.
ASFA, the voice of super, shares the aspiration that everyone in Australia deserves a safe place to live. However, recent ASFA Research found allowing early access to superannuation for housing would not make home ownership more attainable for the majority of aspiring first-home buyers and those with low superannuation balances.
The analysis of over 300,000 ATO superannuation records cross-referenced with capital-city property prices showed the people it would help the most are those who already have a larger super balance and income and are more likely to be able to afford a home.
“Australians can see clearly that this type of measure would likely push up house prices by increasing demand-side pressures on the housing market, putting home ownership even more out of reach for most aspiring first-home buyers,” said Ms Delahunty.
“In his speech Senator Bragg argues that using super for a home deposit is better than being a lifelong renter, but why does it have to be either-or?”
“Young people and first-home buyers rightly expect to have both dignity in retirement and housing. Unfortunately Senator Bragg’s proposals risk resulting in neither,” she added.
Senator Bragg noted that a range of structural and policy issues have created the housing crisis, and will require a multi-faceted response.
“ASFA would welcome policy proposals from all sides of politics that work towards solving Australia’s housing supply and cost crisis whilst still ensuring dignity in retirement through our world-class retirement system.”
