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Industry funds urge bipartisan resistance to super mortgage offsets

Mike Taylor31 July 2024
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Amid increasing signs that the Federal Opposition intends making the use of superannuation for housing an election issue, the industry funds-based Super Members Council (SMC) is urging employers to back resistance to such a move.

But, at the same time, new submissions to a Senate Committee have produced a case study arguing that the use of a superannuation mortgage offset arrangement could improve housing affordability by 15.5% – something which would return affordability to 2004 levels.

SMC chief executive Misha Schubert has used an address to the Committee for the Economic Development of Australia (CEDA) to release research suggesting that the Federal Opposition’s policy would case a 9% spike for a median property, with that rise then flowing through to private rents.

“Median rents could increase by almost $3,000 a year,” the SMC research said.

However, the Real Estate Institute of Australia (REIA) said in its submission to the Senate Economics Committee that a preliminary case study on the use of superannuation to offset mortgage accounts

“Allowing first home buyers to access $50,000 from super for a deposit would not create any more homeowners and leave people worse off financially,” Schubert said arguing that the Coalition should drop the policy and restore “strong bipartisanship on the preservation of super for retirement”.

“A couple withdrawing their super early for a house deposit is projected to be $165,000 worse off over their lives.”

“That’s because rents, mortgage repayments, stamp duties and rates would all rise – and people would lose a mountain of money from their super at retirement.”

“It would make life harder financially for young Australians – especially those renting – and make cost-of-living pressures worse,” Schubert said.

She pointed to the bipartisanship which had made superannuation a success in Australia and said, “We urge Australia’s business leaders to speak up on the importance of safeguarding Australians’ savings for retirement – to avert risks to the incomes of retirees, of fiscal damage, higher taxes, and a weaker capital base for Australia’s economy”.

Mike Taylor

Mike Taylor

Managing Editor/Publisher, Financial Newswire

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Other side home equity positives
6 months ago

Dear Industry Super bosses, do you own a house ? Sure you do so why deny others the opportunity ?
– family home stability
– Family home pride
– Family home equity and wealth generated
What a bunch on self centred Union flogs to only look at the super reduction and not the benefits of home ownership.
What’s Industry Super so affraid off ? Having to sell Unlisted Assets for liquidity at values below what you valuer mates are paid to say ????
Industry Super self serving ticket clippers $$$$$$$$ with $1.7 Trillion reason to have their heads buried deep in the money trough

Anon
6 months ago

I thought allowing people to dip into super to purchase property was a bad idea. But if that deceitful, unprincipled, low life, Misha Schubert is leading the campaign against it, I’m now more inclined to support it.