“Home first, super second” – the push to let home buyers unlock their super
There is a renewed push within Coalition ranks to overhaul the superannuation system, which would allow young people to break into the housing market.
Liberal MP and Economics Committee Chairman Tim Wilson believes people should be able to tap into their superannuation to help put down a deposit, and further increases to compulsory super should be delayed or scrapped.
Mr Wilson argues it simply eats into people’s wages, and stops them buying their first home.
He told Oliver Peterson it’s logical it should be “home first, super second.”
“You can save for your retirement after you own a home, but you can’t save for a home after retirement.”
There’s an argument being mounted by the superannuation industry that this will only push property prices up and make it more unaffordable for first home buyers.
“There are many factors that influence property prices,” said Mr Wilson
“But when people are forced to save fifty grand and can’t access it when they’re in their thirties, then it says that people can afford to buy a home but their money is being locked away from them.
“If you buy a home younger, you’ll generally buy it cheaper.”
Retirees who are paying rent are at the biggest risk of poverty according to Mr Wilson.
“One of the biggest impediments to a comfortable retirement is having rising rent costs,” he said.
Listen to the full interview: