Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Stupidest. Idea. Ever.



Download PDFDownload PDF

CHRIS BOWEN MP SHADOW TREASURER MEMBER FOR MCMAHON

STUPIDEST. IDEA. EVER.

Scott Morrison will stop at no stupid idea to avoid taking action on negative gearing and the capital gains tax discount, as a new report in the Australian Financial Review confirms the Turnbull Government is considering give first buyers access to their superannuation savings for a home deposit.

Mr Morrison’s dictum seems to be let a thousand stupid thought bubbles bloom. The only problem is that a few of these silly ideas are likely to become Turnbull Government policy come Budget time.

Early access to superannuation for a home deposit would undermine retirement savings, create new financial risks, and ultimately serve no credible purpose other than bidding up the price of housing and pushing home ownership further out of reach of young aspirating Australians.

Assistant Minister Michael Sukkar did not rule out the move when interviewed on Sky AM Agenda this morning.

The Finance Minister is the authoritative word on what happens if you give first home buyers access to what little superannuation savings they have for a home deposit:

“Increasing the amount of money going into real estate by facilitating access to super savings pre-retirement will not improve housing affordability.

“It would increase demand for housing and, all other things being equal, would actually drive up house prices by more. That is, it would reduce housing affordability, including for first home buyers.”

The now Prime Minister said in 2015 when then Treasury Hockey raised the same thought bubble, that it was a “thoroughly bad idea”.

Let’s just call this for what it is, this is an idea prompted by the Liberal Party’s long running, ideological opposition to Australia’s compulsory superannuation system.

They will stop at nothing to undermine the retirement incomes of working Australians, while doing absolutely nothing for young Australians who are aspiring for their first home.

TUESDAY, 14 MARCH 2017

MEDIA CONTACT: JAMES CULLEN 0409 719 879