Superannuation Minister Jane Hume has admitted that Aussie house prices will jump up ‘temporarily’ as a result of the government’s new home buyer scheme.
The proposal – which will go into effect should Prime Minister Scott Morrison win the Federal election – will let prospective first home buyers to access their superannuation and put up to $50,000 of it towards a deposit for a property.
During an interview with ABC Radio National presenter Patricia Karvelas, Senator Hume conceded the move will cause house prices to increase.
‘We know people will bring forward some of their decisions to buy a house earlier and for that reason it will probably bring up housing prices temporarily,’ the Senator said.
Superannuation Minister Jane Hume (right) has admitted that inflated house prices will rise further for a period of time due to the government’s Super Home Buyer scheme. (Pictured with Treasurer Josh Frydenberg)
Karvelas quizzed Ms Hume on how much prices were expected to increase.
‘PK (Karvelas’ nickname), you know that there are too many factors that play into the prices of housing temporarily and permanently,’ the Liberal politician responded.
Later in the morning, Mr Morrison hosed down Ms Hume’s gaffe – insisting that it wouldn’t raise prices.
He told reporters during a press conference in Ipswich that the government’s scheme would work in combination with separate announcements to increase housing supply.
‘The number one issue that forces up housing prices in this country is insufficient supply and this policy with the downsizing policy, the HomeBuilder policy, have all been about increasing that supply,’ he said.
Mr Morrison claimed that anyone opposing his housing plan did so because they don’t see superannuation as people’s own money.
‘Our plan is about putting Australians in charge of their future with their own money,’ he said.
The Super Home Buyer scheme allows prospective home buyers to use 40 per cent of their superannuation, up to $50,000, towards their first home. Stock image
Senator Hume’s assertion about a temporary price rise contradicts a claim made by Scott Morrison (pictured) just minutes later when the Prime Minister appeared on the ABC’s current affairs program AM
‘It’s their money, we’re not going to tell them what to do with it, they’ll make their own decisions.’
The Prime Minister dodged questions about what would happen if the housing market crashed and people needed to sell at a loss, losing their super investment simultaneously.
The government’s scheme has largely been criticised by other politicians and economists have stated the policy will result in higher house prices.
In response to the policy former Prime Minister Malcolm Turnbull (right) posted an excerpt from his memoir where he revealed he had resisted Scott Morrison’s push for the controversial plan seven years ago. (Pictured with wife & businesswoman Lucy Turnbull in 2020)
Former Prime Minister Paul Keating (right) lambasted the plan as another ‘offence’ from an ‘intellectually corrupt government’. The Keating government’s economic reforms in the 1980s and 1990s created financial systems which are in place today including modern superannuation. (Pictured with former Prime Minister Kevin Rudd)
In response to the policy, former Prime Minister Malcolm Turnbull posted a picture to social media of an excerpt from his memoir, A Bigger Picture, where he revealed he had resisted Scott Morrison’s push for the controversial plan seven years ago.
‘He (Scott Morrison) was also keen to allow first-home buyers to use their superannuation saving for a home deposit – an idea I’d sharply criticised back in 2015 as undermining the object of superannuation and only likely to fuel demand.
Mr Turnbull, at the time, considered housing affordability to be a ‘supply-side problem’ because of ‘planning restrictions’.
Another former Prime Minister, Labor’s Paul Keating, lambasted the plan as another ‘offence’ from an ‘intellectually corrupt government’.
‘The Liberals hate the superannuation system – they object to working Australians having access to wealth in retirement independent of the government,’ he said.
‘Next it will be aged care of longevity or paying out HECS debt – anything to puncture the pool of money they do fervently hate. If the public need another idea to put this intellectually corrupt government to death this is an important offence.’
The Keating government’s economic reforms in the 1980s and 1990s created many financial systems which are in place in Australia including modern superannuation.
Labor frontbencher Jason Clare has referred to the policy as a ‘desperate act from a dying government’.
He said: ‘You shouldn’t have to raid your super to buy a home, and you won’t under Labor.’
If re-elected, the Coalition’s Super Home Buyer scheme will commence from July next year.
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