The Association of Superannuation Funds of Australia (ASFA) has labelled the proposal from Master Builders Australia for the early release of super to address housing affordability as glib and underwhelming.
ASFA CEO, Dr Martin Fahy said: “the unemployment crisis faced by vulnerable sectors such as construction, hospitality and retail, requires a co-ordinated and comprehensive fiscal response from the Australian Government.
“With interest rates at an all-time low and government borrowings the lowest in the OECD, Australia needs a Marshall Plan-like stimulus to protect Australians from the scourge of long-term structural unemployment.
“The proposal from Master Builders does nothing to address the supply side constraints at the heart of housing affordability and will instead channel the badly needed retirement savings of young Australians into the hands of speculators and property developers.”
ASFA modelling reveals that schemes to fund home buying through superannuation drive up property prices by the full amount of the super drawdown – it is a direct transfer of money.
“MBA’s proposal would inflate the price of a property by $50,000, exacerbating the critical issue of housing affordability and eat into the retirement savings of young Australians.
“The superannuation industry stands ready to work collaboratively with the Government to fund critical nation-building projects needed to bring about a transformative economic recovery for all Australians, including social and affordable housing.”
ASFA is urging the Federal Government to release the Retirement Income Review and to table the report in the next sitting of federal parliament.
“The increase in damaging speculation around the future of the our retirement settings is undermining confidence in Australia’s retirement system and superannuation’s ability to help ensure Australians have a dignified retirement”.
For further information, please contact:
Jacqui Maddock, 0451 949 300.
ASFA is the peak policy, research and advocacy body for Australia’s superannuation industry. It is a not-for-profit, sector-neutral, and non-party political, national organisation. ASFA’s mission is to continuously improve the superannuation system, so all Australians can enjoy a comfortable and dignified retirement.