In its Financial Stability Review, the RBA expressed concern that some potential first home buyers are likely to have been priced out of parts of the market by investors who typically have higher incomes and are able to outbid competition.
In an article published by the ABC, Senator Canavan stressed the importance of giving first home buyers access to their superannuation.
“I’ve suggested we allow people to access their superannuation to buy their first home, I think it’s very important we allow people to do that and it’s their money and they should have control of it,” he said.
In his maiden speech to the Senate earlier this year, Senator Canavan questioned why Australians are being forced to save for their retirement before they can purchase their own home.
“At the federal level we make it harder for young people to buy their own home by forcing them to put 9.5 per cent of their income into a savings account they may not be able to access until they are 65. I wanted a home when I was 25, not 65,” he said.
In July this year, Independent Senator for South Australia Nick Xenophon announced he would introduce legislative changes in the spring session of parliament that would allow first home buyers to access their superannuation for a house deposit.
“There’s something strange about being able to access your super fund if you are about to default on your housing loan, but you can’t access it to put a deposit on a home in the first place,” he said.
However, at the time, The SMSF Academy’s Aaron Dunn warned the long-term benefits of this proposal need to be comprehensively considered, noting the proposal “doesn’t fix” the adequacy gap that exists in the retirement savings of Australians.
He also said the impact this notion would have on housing prices should be considered, given it would potentially allow a significant number of new entrants to the property market.