INCUMBENT Riverina MP Michael McCormack has backed the Coalition's controversial superannuation first home buyer policy revealed just days out from the federal election.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
On Sunday, Prime Minister Scott Morrison announced a plan to allow Australians to dip into as much as 40 per cent of their superannuation, to a maximum of $50,000, to fund their first home.
Yesterday Mr McCormack said the policy is a good idea. "It's a great policy," he said.
"Superannuation is people's own money, so in these trying times when it is difficult to get into the market, it's got to be a good thing.
"We're giving people more choices. If people don't want to take that option, that's fine too."
IN OTHER NEWS:
However, Labor candidate for the Riverina Mark Jeffreson has criticised the Coalition's idea. "I don't think it's a very good policy and it's also not a particularly sensible one," Mr Jeffreson said.
"It's taking a retirement income arrangement and turning it into a house purchase arrangement.
"Because on the government's watch, housing affordability has become notional with a lot of people who simply can't afford it.
"The government's solution is to sacrifice their future retirement by getting the money out now when they could be looking at ways to get some of the flames out of the house prices."
Following the Coalition's announcement it emerged that incumbent Farrer MP and federal Minister for the Environment Sussan Ley had previously opposed plans to allow people to raid their super early.
On April 12, 2017, Mrs Ley tweeted: "Young people need their super for retirement, not to try to take pressure off an urban housing bubble, better solved by decentralisation."
As the tweet came to light, it drew sceptical responses from hundreds of Twitter users, many asking whether Mrs Ley would change her position on the issue after Mr Morrison's announcement.
Mrs Ley said she stood by Mr Morrison's approach to the issue and said it was different to previous proposals.
"This is a targeted approach for a very real and current day issue facing many young people," Mrs Ley said. "It is also very different from previous proposals.
The Coalition's announcement follows Labor's shared equity pledge to contribute up to 40 per cent of the cost of a new home for 10,000 new homeowners.
But Paisley Robertson director and financial adviser Andrew Morrison believes both policies are problematic. "The problem is both parties' first home buyer schemes are probably fuelling the fire with property prices," Mr Morrison said.
He believes both incentives will increase house prices. "I do think there are some benefits to giving people super, even though that wasn't its original intention," he said.
"But the problem is if they have used 40 per cent of their super early, they may not have enough super when it comes to retirement."
Mr Morrison is wary about Labor's idea for the government to own 40 per cent of people's homes.
Our journalists work hard to provide local, up-to-date news to the community. This is how you can continue to access our trusted content:
- Download our app from the Apple Store or Google Play
- Bookmark dailyadvertiser.com.au
- Follow us on Twitter
- Follow us on Instagram
- Follow us on Google News
- Make sure you are signed up for our breaking and regular headlines newsletters