ASFA’s statement is in response to the speech by NSW Liberal Senator Andrew Bragg, who stated superannuation is “a silver bullet solution to Australia’s complex housing crisis”.
ASFA CEO, Mary Delahunty, said this proposal was rejected at the last federal election, and Senator Bragg has “brought back the same policy which will leave young people behind and entrench intergenerational inequality”.
She said recent ASFA research found allowing early access to superannuation for housing would not make homeownership 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 Delahunty.
“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.”
Delahunty said 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 Australia’s world-class retirement system.
Sadly, the issue is this:
I came from a background of not being able to get financial help to purchase my first home, except for Stamp Duty exemption in a suburb in the far west of Sydney (the “sticks” in those days). I saved so hard I was counting my copper coins to see if I could afford to get a cold can of coke on a 42degree plus day, facing a 1.5 hour trip home on a red rattler. Some people will be scratching their heads wondering what I am talking about.
Suffice to say, I decided not to buy the cold can of coke as it meant I would be closer to owning my home one day.
But, I did not have super coming out of my pay-packet back then. Today it is almost the top rate of 12% of wages. That is a form of forced savings. How is a young person today meant to be able to save a deposit when 12% is already coming out of their wages (and employers should not be asked to fund this BTW).
Add to that the encouragement to go to uni and the HECS debts thus accrued. So even more being taken out of the pay packet to the government.
And then to add insult to injury, the government will probably dream up more ways to get their grubby hands on your superannuation savings, dreaming up ideas like double-taxation and taxes on unrealised gains as our current despicable government and their Treasury heads deign to be fair! I might add the lies of Treasury to the people and the government unless they truly do not understand the mess that they are creating in which case they should not be in Treasury. Correspondence from them would indicate to me that they are either lying to me or do not understand their own formula. It is abominable.
To say that young people today are disillusioned come no where near the truth.
To say that the older generation is disillusioned also comes no where near the truth.
We were aspirational and we had great leaders that inspired aspiration. We don’t have that anymore, and it is nothing short of depressing for both ends of the generation span.
The Superannuation system WAS a world-class system. It is about to be rorted by the thieves in government and I pity those poor young people who have another 40 years of forced annual double-digit savings of their own money, with 40 years of budgets ahead of them. Their money is locked up, they will be paying HECS for years to come and they may never be able to save for a home and all the while, the government is dreaming up its next scheme to raid your superannuation account. Take it from those of us that still remember the red rattlers and copper coins. Our life-savings are about to be raided big time.
I am so sorry about the rant but no one is listening and I am powerless to protect my life savings from what appears to me at least to be a communist government. At least if I could access my own funds, I could help my own family instead of the government stealing it and wasting it on their own pet projects that send money down the drain and is open to rorting.
This is just so wrong.