Super for mortgage offset: ‘Won’t help, is a massive risk, doesn’t work’

The Second Interim report of the Retirement Systems Inquiry punts up yet another reckless super early-release proposal that won’t help, is a massive risk, and doesn’t work.

 

Allowing the early release of superannuation to offset a mortgage is a useless and unworkable thought bubble that will not help a single person to buy their first home or see a single new home built.

 

Evidence to the Economics Committee was clear that even if this proposed scheme was able to be established, it:

• Wouldn’t help anyone to buy their first home or even build a single new home.
• Would deplete superannuation balances leaving people with less income in retirement.
• Is unworkably complex and not supported by the lending or superannuation industry.
• Would have an inflationary impact on house prices.
• Would see a person lose their home in the event of foreclosure as well as having lost returns on their superannuation balance.
• Would cost the federal budget through lost revenue on superannuation balances.

Supply is the answer to our housing issues, not demand-side policies and super early release schemes that only worsen the housing situation in Australia.

Quotes attributable to Senator Jess Walsh:

“This undercooked proposal to raid your super to offset your mortgage won’t help anyone to buy their first home and it won’t see a single new home built when we know the answer to our housing issues is supply”

“The Coalition’s answer to every issue is to raid your superannuation balance. It’s reckless, dangerous, and must stop.”

Thursday 19 September

Media contact for Senator Walsh: Riley Geary – 0402 261 235