Super for housing is perverse policy

Super for housing is perverse policy Making superannuation available for home deposits amounts to a further boost for wealthy retirees at the expense of younger Australians struggling with the housing affordability crisis, according to Everybody’s Home. “The housing system is on fire and this proposal appears to mistake kerosene with water,” said Everybody’s Home national spokesperson, Kate Colvin. “If implemented, this would make homes less affordable, compromise retirement savings of younger Australians and make more Australians vulnerable to homelessness and housing stress.” The proposed policy would allow participants to withdraw up to 40 per cent of their superannuation up to a maximum of $50,000. The median superannuation balance for an Australian aged 30-34 is currently $42,000 while for Australians 35-39 it is $65,200. “This policy would put a rocket under house prices, further inflaming the housing affordability crisis. More dollars chasing the same property is a recipe for more stress, more homelessness and an even more lopsided housing system. “We need to expand the supply of affordable and social housing. All this proposal does is create more demand for existing homes. “A far better way to deal with Australia’s housing crisis would be to provide incentives and investment vehicles for superannuation to invest in more social and affordable housing, to give low and modest income Australians greater choice and a better shot at stability and security. “Igniting another house price boom is the last thing Australia needs.”