Domingo, 19 Agosto, 2018

PM slaps down super for house deposit push

Australian Prime Minister Malcolm Turnbull with cricketer Sachin Tendulkar his mother-in-law Annabel Mehta and girls PM weighs into super home deposit debate
Manuel Armenta | 12 Abril, 2017, 18:48

Previously, Mr Turnbull has described the idea as "thoroughly bad".

"This is a debate that's gone round and round for a long time", the prime minister told reporters in Mumbai on Wednesday, where he was wrapping up a three-day visit to India.

"That's the whole goal of it and that's why the whole system was set up in the first place", he told Sky News.

His government is planning to make a housing affordability package the centrepiece of next month's budget.

"Along with measures to ease demand, giving homebuyers access to their super would help re-weight the odds in their favour".

However, Nationals MP Andrew Broad doesn't share his coalition colleagues' view.

"Using superannuation to address housing affordability for first home buyers is a lazy response to the problem", he tweeted.

Outside the government, there have been concerns from some economists that it could cause already inflated house prices to increase further, with Chris Richardson from Deloitte Access Economics telling The Australian that he thought prices could rise by as much as 1%.

"The only winners would be vendors who would have two first home buyers with access to super outbidding each other, spending their superannuation money", he said on ABC Radio yesterday morning.