Money The Coalition MPs who don’t think superannuation should be used for house deposits

04:55  14 april  2017
04:55  14 april  2017 Source:   crikey.com.au

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After years of the electorate crying out for help to make buying a first home easier, the Coalition has announced a suite of 30k in total when the average syd house needs a 100k deposit ??? Wtf??? #budget17. Labor, meanwhile, maintains that superannuation should not be used for housing .

Ahead of that meeting, Coalition MPs have split over the super for housing proposal, underscoring divisions inside the Mr Turnbull said on Wednesday the proposal to allow first-home buyers to use part of their superannuation for a deposit was a "debate that's gone round and round, for a long time".

The idea of using one’s superannuation to pay for a house deposit just won’t die when it comes to Australia’s housing affordability debate. The main reason it won’t die is because Treasurer Scott Morrison thinks it’s a good idea. But the list of government ministers and backbenchers who have said on the record that they disagree is long, and getting longer. Here they all are:

1. Malcolm Turnbull

  The Coalition MPs who don’t think superannuation should be used for house deposits © Provided by Private Media Operations Pty Ltd. Yes, the Prime Minister. In 2015 the idea was raised by then-treasurer Joe Hockey and Turnbull called it a “thoroughly bad idea”. “That is not what the superannuation system is designed to achieve,” he said. This week he didn’t repeat the views in such terms, but told reporters asking about the debate: “I won’t contribute to it but I have expressed fairly strong views about it in the past.”

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An idea to allow young people to access super for a house deposit has split coalition MPs ahead of the May budget. " Using superannuation to address housing affordability for first home buyers is a lazy response to the problem," he tweeted.

"The purpose of superannuation is for use in retirement or not," the MP said. Other government ministers and MPs have also raised concerns, with some saying they had no idea why the Coalition was buying into the issue of housing affordability.

2. Mathias Cormann

  The Coalition MPs who don’t think superannuation should be used for house deposits © Provided by Private Media Operations Pty Ltd.

Another man who knows what he is talking about, it’s the Finance Minister. This is what Cormann said on Sky News last month:

“If you enable people to access their super in the circumstances you describe, you enable more people to enter the housing market more quickly, then you are boosting demand and to the extent that there is a housing affordability issue that would make the problem potentially worse, all other things being equal. The risk is that if you boost demand and you increase prices by more, then you end up with a wealth transfer, effectively, from people who are saving for their retirement to people who are selling their properties. I have long been on the public record in relation to this issue.”

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The idea of using super for deposits would also have the advantage of a policy Labor could not gazump. Labor proudly views superannuation as a vital support for working families as well as the country's financial system that should not be used for any other purpose.

Superannuation has become the ultimate trip-up for politicians. IT’S the issue so complex it’s It’s believed a number of MPs have vowed to fight the changes if the Coalition is re-elected. “Young Australians should be furious about this,” Grattan’s public policy expert John Daley said.

3. Christopher Pyne

  The Coalition MPs who don’t think superannuation should be used for house deposits © Provided by Private Media Operations Pty Ltd.

The Defence Industry Minister started out by batting away the question from the ABC’s Patricia Karvelas on RN Breakfast, and had a go at other ministers for putting their views in the open. “It’s a great pity that colleagues run these debates publicly,” he said. But Pyne ended up cautiously making his views about what superannuation really should be used for known:

“Superannuation has a particular role — it is a retirement income. Our superannuation system is the envy of the world, and those people who seek to fiddle with it are putting that at risk.”

“There is no evidence to suggest that if superannuation was to be able to be used for housing that that would somehow bring house prices down. There is evidence on the other side of the ledger which suggests that all that would happen in fact  is that house prices would continue to go up and the person selling the house would simply take that person’s super as increased house prices.”

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“ Using superannuation to address housing affordability for first home buyers is a lazy response to However, it seems, according to The Australian, that there are some MPs within the Coalition that “This is , I think , a legitimate idea," Canavan told ABC Radio. "It’s had support from people like Paul

With the First Home Super Saver Scheme (FHSSS), FHBs can make contributions to their superannuation account to later use as their deposit . Essentially, you’re using super to buy a house but the problem is that these contributions are capped and don ’ t go far enough as a true no deposit

4. Andrew Broad

The Nationals MP for Mallee tweeted that the idea was “lazy”: “Using superannuation to address housing affordability for first home buyers is a lazy response to the problem.”

  The Coalition MPs who don’t think superannuation should be used for house deposits © Provided by Private Media Operations Pty Ltd.

5. Anne Ruston

On ABC Radio in Adelaide, Liberal Senator Anne Ruston didn’t hold back on the idea. In the same conversation, Labor’s Nick Champion called the idea “spectacularly bad” and began the metaphor pouring kerosene on a fire. “I’ll agree with Champion,” she said. “We need to be careful that you don’t pour a bucket of kerosene on a fire. We need to look at all of the measures in total.”

6. Sussan Ley

Former health minister Sussan Ley agrees with Deputy Prime Minister Barnaby Joyce that people who want affordable housing should move to the country (Joyce has kept his views on raiding super for housing to himself), but she was more direct when it came to superannuation. She tweeted:

“Young people need their super for retirement, not to try to take pressure off an urban housing bubble, better solved by decentralisation.”

  The Coalition MPs who don’t think superannuation should be used for house deposits © Provided by Private Media Operations Pty Ltd.

7. Kelly O’Dwyer

The ABC is reporting that O’Dwyer, Minister for Revenue and Financial Services, is also against the idea.

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