Brendan Coates from the Grattan Institute predicts accessing super early is likely to be a much bigger issue going forward as people struggle to meet their mortgage repayments."The 7 per cent mortgage rates today — what we'll get when the cash rate hits 4 per cent — are the equivalent of the 17 per cent plus mortgage rates that borrowers were paying in the early 1990s."Mr Coates thinks there is a good case for allowing greater access to superannuation before retirement.
He said he would support people being able to cash out of their superannuation, each year, any contributions above 10 per cent of their wages. It is estimated superannuation tax concessions will cost the Australian government $52.5 billion this financial year, according to the Australia Institute. At the moment, earnings from superannuation are taxed at up to 15 per cent — that will increase to 30 per cent for around 80,000 Australians, on the portion of their balance that is over $3 million.Reforms needed but early access to super not advisedThe director of Super Consumers Australia, Xavier O'Halloran, agrees.
Well done, Little point in having any super if half of it will go in renting a place. Home ownership first super second.
So she is using her super to pay her mortgage meaning if she hasn't enough to clear it she will eventually have to sell the house and use any profits to live on until she is eligible for the aged pension which won't be enough to live on. Worst case for early super access ever!
Paying down your mortgage is actually a very sensible investment strategy.
She will have a home, rent free in retirement. That means $200-300 or more awm saving
Probably drunk the LNP Koolaid.
That was a mistake.
Because there is a pension safety net. Why not….
Get it out before Albo steals it!
14 bouts of shingles? I think she needs to lay off the jabs💉💉
. . .
If she's stressing about paying the mortgage the smart money is on liquidate the house, rent, save the difference and dump the house into the super... not the other way around.
She’s just making repayments, she’s not paying any principal, and when the super money is finished what then? No one could hope to pay a mortgage on a disability pension, it’s just not possible.
Thanks to the labor party, the Australian dream is now dead.
Cheer up love. All will be fine now.
Great investment. Your money is so much safer in property than super.
And ...? What's the point of the abc anymore but to piggy back the Murdoch method
'I have multiple friends who can't find rentals, who are in sheds and in caravans with children,' she said. And Albo keeps flooding in the migrants by the hundreds of thousands.
So isn't the issue really about raising Centrelink payments and income rather than attacking super? With the massive half yearly profits announced last week it's easy to see what is really driving inflation and how trickle down economics does not work.
At least she has a super. We don't even have a voice. And haven't since the arrival of the first white migrants here from their Traditional Lands in Europe!
This is the kinda policy that sounds smart at face value, but is completely idiotic when you really think about it
It demonstrates the value of superannuation.
Sorry to burst you're little bubble Lisa but most Australians want the super rorts stopped well go figure
The Morrison Government set about destroying superannuation during covid instead of providing a buffer for people
Kerrie has made a mistake she will live to regret.
Australia has no government, it isecared to raise a very reasonable super tax ,shame on Albo.