By Saul Eslake

Using super for housing would make homes more expensive, hinder the home ownership aspirations of young Australians, reduce retirement incomes, and lead to a significant long-term cost to the Budget, a Corinna Economic Advisory report authored by Saul Eslake has found.  

In an independent report, commissioned by the Super Members Council, Mr Eslake charts how a long list of demand-side Australian housing policies over several decades have simply made homes more expensive.  

He warns super for a house would be the worst of all.  

“We have 60 years of history, which unambiguously tells us, anything that allows Australians to pay more for housing than they otherwise could leads to more expensive housing and not more homeowners,” he said.

“Of all the demand-fuelling housing policies, the Coalition’s super for housing policy would be the biggest – it can only lead to higher prices.”  

“If super for house was introduced, it would be one of the worst public policy decisions in the last six decades.”

Mr Eslake said the decline in home ownership rates could undermine a key assumption in Australia’s retirement system – that most retirees will own their own home – and noted the need to expand housing supply.  

However, the Coalition’s ‘Super Home Buyer Scheme’ under which people would be allowed to withdraw up to 40% of their superannuation savings up to a maximum of $50,000, would likely hinder home ownership aspirations for younger Australians.

Full report here.