For several years now, the Coalition has insisted that if we want more Australians to own their own homes, we should be allowing people to access and draw on their superannuation. That is, of course, when the bank of mum and dad – the Coalition’s preferred housing solution – isn’t on hand to bequeath the standard 20 per cent required for a deposit.
But for as long as they’ve been insisting the plan is a good one, countless studies and mountains of research from housing experts and economists both in Australia and around the world have shown it not to be. To be lucky enough to secure any of these options, a 20 per cent deposit will set you back between $109,000 and $185,000. Considering Australians are already among the highest carriers of household debt in the world, it’s hard to see how blowing that out even further is sound economic policy.
It’s here Bragg sees injustice. If older Australians can take advantage of the self-managed super fund loophole, why can’t everyone, right?“It’s ridiculous that people are denied their biggest and their best opportunity of getting into a house absent the bank of mum and dad, and we don’t want to have a country where people are relying on intergenerational wealth,” Bragg said.
The gap between estimates of what a person’s balance should be and what it actually is has been growing recently, particularly after COVID-19 when many young people took advantage of the Coalition allowing temporary access and the withdrawal of up to $20,000 from super.
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