Angus Taylor has immediately distanced himself from the latest policy proposal from Liberal frontbencher Andrew Bragg that would let first home buyers use their superannuation savings as collateral for a loan. Bragg, the shadow housing minister, floated “a range of ways” on Tuesday that Australians’ retirement savings could be used to help more people into home ownership. When asked about the idea of using super to increase a would-be homeowner’s borrowing capacity, Taylor said “the proposal you’re talking about there is not our policy”.
That intervention on 15 August triggered a rebuke from the opposition leader, and split the party, which has yet to finalise its policy. Marles hailed the $4.8tn compulsory super system as “profoundly important” for Australians’ security in retirement, a day after the latest intergenerational report highlighted the long-term challenges of paying for the needs of a rapidly ageing population. Peter Tulip, the chief economist at the Centre for Independent Studies, said using super as collateral for a home loan was a better approach than the existing first home guarantee scheme, which allows first home buyers to borrow to buy a home with a deposit worth as little as 5% of the value of the home.
Tulip said it was preferable that people risked their own super savings, rather than taxpayer money, when buying a home, as it would help reduce more reckless borrowing. That said, neither approach – the super for housing idea or the existing first home guarantee scheme – would help in the current situation where demand for homes outstripped supply, he said. And while I think super for housing is a good idea, my support is qualified because in the current situation it will make prices go up and worsen affordability.” Matthew Bowes, a senior associate at the Grattan Institute, said it was not clear that the super for housing policy would help those most struggling to buy homes.
But they already have a lot of subsidies thrown their way and that doesn’t solve the underlying issue, which is a lack of supply of affordable first homes in places where people want to live.” In a speech to the Financial Service Council, Bragg further qualified his earlier comments by saying “to be clear, none of these ideas are our policy but we are keeping an open mind and they are options worthy of a debate in a country like Australia”.
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