Telling young Australians to raid super for a house deposit would just unleash a massive house price hike – adding fuel to the fire on house prices – and wipe out their super, disastrously making future generations of young Australians wait even longer to own a home.
New analysis shows the median super balance of renters in their 30s is just $40,000 – and $70,000 for a couple. If a couple only used their super to buy a home, it is not until their late-40s that the typical renter has a higher super balance than the average $110,000 deposit of a first home buyer.
Reports overnight suggest some Coalition MPs are pushing to radically expand the scope of their super for a house policy proposal – already debunked by credible economists – to make it uncapped.
“That would be economically reckless – and sets a trap that would make it even harder for future generations of young Australians to realise the great Australian dream of owning a home,” Super Members Council CEO Misha Schubert said.
“Politicians would be shirking their responsibility of fixing the housing crisis, instead telling young people they can either have a house or save for retirement – but not both.
“And what’s the upshot for young Australians? They’d be forced to pay more for a house, with a bigger mortgage, have less super at retirement, and pay more in taxes to fund a bloated age pension.”
“We urge a sensible rethink on any policy ideas that would undermine super.”
The creation of super is a remarkable Australian achievement that delivers a dignified retirement for millions of Australians – and it is rightly the envy of the world. Anytime politicians float using super for something else, it undermines its purpose to deliver strong returns for all Australians.
The new analysis of ABS data refutes the policy claim that it would help more young Australians enter the housing market, with few younger renters having enough super to help build a deposit (Table 1).
Super Members Council CEO Misha Schubert said wealthier and older renters would just end up using their super and other assets to pay higher prices to buy the same house.
The current capped policy proposal would unleash a massive price hike that would push up prices by 9% or $75,000
