Industry fund urges bank of mum and dad advice

Mike Taylor

Managing Editor/Publisher, Financial Newswire

18 March 2026

Industry super fund, Aware Super has urged parents and grandparents to seek financial advice before providing financial support to children for buying a home.

The fund is urging professional advice on the back of new research showing older Australians are feeling cost of living pressure while also stepping in to help in growing numbers, often without the guidance to do so safely and putting their own retirement goals at risk.

The research found that 98% of parents and 96% of grandparents are open to providing financial support to help a younger family member buy their first home.

However, the research also reveals a significant gap between intention and preparation as well as awareness of government schemes designed to support first home buyers.

• Around one in three parents and grandparents – 31% – have already helped fund a first home purchase, most commonly through cash gifts toward a deposit.
• Among those yet to help, 71% say they are open to doing so in future.
• Much of this support is happening informally, without full consideration of the tax consequences, the impact on retirement savings, super contribution caps, pension eligibility or how to support children equitably.
• For families seeking to buy their first home, the First Home Super Saver (FHSS)  Scheme – which allows eligible buyers to make voluntary super contributions and later withdraw them toward a deposit – had a net familiarity rate of just 26% compared with 54% for the First Home Owner Grant and 49% for the First Home Guarantee.

Commenting on the research, Aware Super chief executive, Deanne Stewart said it painted a clear picture of a generation of Australians who wanted to do the right thing by their families but needed more support to do it well.

“Every day, Australians are making significant financial decisions to help their children and grandchildren get a foot on the property ladder and in most cases, they’re doing it with the best of intentions but without a clear plan,” Ms Stewart said.

“What our research tells us is that willingness is not the problem with almost every parent and grandparent we surveyed open to helping.

“The problem is uncertainty and the list is long as they have to think about tax, retirement, and whether they can afford to give what’s being asked of them.

Stewart added the low awareness of the FHSSS was a missed opportunity for many Australian families.

Under the FHSS, members can use voluntary super contributions to help save for the first house deposit and allow them to save faster through lower tax rates and potentially higher investment returns.

“The First Home Super Saver Scheme isn’t suitable for everyone, but for the right families it can be a genuinely useful way to accelerate a deposit using the tax advantages of the superannuation system,” she said.

“The challenge isn’t the scheme itself — it’s that too few people know it exists or understand how it works and that’s something we can address by actively working to help our members and their families navigate the unknown.”