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

Scott Morrison to reaffirm Coalition's opposition to changing negative gearing tax concessions

  Scott Morrison to reaffirm Coalition's opposition to changing negative gearing tax concessions Scott Morrison to reaffirm opposition to changing negative gearing In a key pre-budget address to the Australian Housing and Urban Research Institute today, Mr Morrison will reaffirm the Coalition's strident opposition to changing negative gearing tax concessions.

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

Tony Abbott has contradicted Coalition leadership by suggesting superannuation could be used for house deposits . Mr Morrison and some Coalition MPs have not explicitly ruled out the controversial proposal that was described by Malcolm Turnbull as a “thoroughly bad idea” in 2015.

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.”

Encouraging older home owners to move could help housing affordability

  Encouraging older home owners to move could help housing affordability Housing affordability is all about supply, according to a tax expert at accountancy firm BDO. Marcus Leonard.Housing affordability is all about supply, according to a tax expert at accountancy firm BDO.

‘Mad’ plan on super and housing fuels Coalition rift. The proposal could see young people divert super payments into a special account for a house deposit . “The purpose of superannuation is for use in retirement or not,” the MP said. I don ’ t think so. Time to end the Treasurer’s ‘ housing supply’ con.

Coalition MPs are split on allowing young Australians to use superannuation for a house deposit . “The Prime Minister has restated our policy which is that we have no policy to allow superannuation to be used for housing ,” he said.

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.”

Moody's warns of high household debt

  Moody's warns of high household debt A lack of liquid assets and high levels of household debt leaves Australians vulnerable if there is a house price crash, a ratings agency says.Australia's household debt level, relative to liquid household assets excluding superannuation, is similar to that in Ireland in 2007, just before its housing market crashed, Moody's said.

Allowing superannuation to be used for home deposits would facilitate a great intergenerational theft, argues Michael Janda. 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.

Using superannuation to address housing affordability for first home buyers is a lazy response to the problem. And the "now" right now is getting that impossible deposit together. This idea has "freedom" written all over it. A freedom that many Coalition MPs champion.

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.”

Young Australians better off renting than buying a home, says economist Chris Richardson

  Young Australians better off renting than buying a home, says economist Chris Richardson <p>Young Australians would be better off renting than trying to purchase a property given record prices in capital cities, according to one of Australia's most respected economists.</p>Deloitte Access Economics' Chris Richardson used his speech at the National Press Club today to offer some advice to those seemingly locked-out of the property market.

To what URL should this link go? Open in new window.

This support portal is disabled.

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.

Mining billionaire Andrew 'Twiggy' Forrest's charity pushes for more Centrelink income management .
<p>Mining magnate Andrew "Twiggy" Forrest's charity, the Minderoo Foundation, has launched an advertising blitz pushing for Centrelink's income management to be expanded.</p>The Cashless Debit Card quarantines 80 per cent of welfare payments and cannot pay for liquor, gambling or be used to withdraw cash.

—   Share news in the SOC. Networks

Topical videos:

This is interesting!