The super stoush continues on housing policy | Liverpool City Champion

Labor has attacked the government’s new policy allowing first-time home buyers to dip into their superannuation to enter the housing market.

Prime Minister Scott Morrison used the official Liberal Party campaign launch on Sunday to announce that first-time home buyers will be able to access 40% of their superannuation up to $50,000 to buy a home.

But Labor housing spokesman Jason Clare said the policy would drive up housing prices and hurt young Australians who have less super after former Prime Minister Paul Keating called it a ” “frontal assault” against the system.

Mr Clare called the policy a “desperate last act of a dying government”.

“It would be like adding kerosene to a fire. Their super will drive up real estate prices,” he said.

“You shouldn’t have to loot your super to buy a house.”

Mr Clare has also raised opposition to similar plans from Liberal stalwarts John Howard and Peter Costello as well as Malcolm Turnbull and Mathias Cormann.

“John Howard said super was for retirement, and he’s right,” Mr Clare said.

“This last great generation of liberal leaders who knew how to count, Howard, Costello, Turnbull, Cormann, all came to the conclusion that this policy will not work.”

Mr Morrison said the policy would allow Australians to take back responsibility for their own superannuation and help people save for retirement by allowing them to own their own homes.

“Evidence shows that the best thing we can do to help Australians achieve financial security in retirement is to help them own their own homes,” he said.

Homeowners would then return the original super amount withdrawn plus an equivalent proportion of the capital gain or loss when they sell the home.

“This will responsibly ensure that the majority of your super stays in your existing fund and keep your savings diversified,” Morrison said.

“But it will be a game-changer for thousands of Australian families who sit down and look at that money on their balance and walk away, if only I had that to help me now.”

Australian Associated Press

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