The Prime Minister has unveiled a new policy to help first-time homebuyers unlock up to $50,000 from their super, in a last-ditch bid to retain the nation’s top job.
Scott Morrison will let first-time homebuyers unlock his super to buy a home in a last-ditch effort to win the election.
The Prime Minister announced the bold policy at Brisbane’s campaign launch on Sunday, revealing that if re-elected he will allow workers to raid his super piggy bank to buy a house.
Workers will be able to withdraw up to $50,000, but the scheme will not start until July 1, 2023.
“Under the Super Homebuyer Program, first-time homebuyers will be able to invest up to 40 percent of their retirement, up to a maximum of $50,000, to help with the purchase of their first home,” the Prime Minister said.
There are no income or property limits under the scheme, with eligibility restricted to first-time homebuyers who must have separately saved five per cent of the deposit.
The proposal was first raised when Morrison was treasurer and championed by Housing Minister Michael Sukkar, but was vetoed by former Prime Minister Malcolm Turnbull.
It has also been championed by Liberal MP Tim Wilson under a “home first, grocery second” policy.
For many under 30, the plan would wipe out their super savings, but for older workers who don’t buy a home until age 40, it would have less of an impact.
“We want to continue to help Australians overcome the biggest hurdle on their path to home ownership,” said Morrison.
“And we started this process with the Home Guarantee Plan and that is the difficulty of saving for a deposit. And being able to use your own money to do it.
“That is why a re-elected coalition government will allow first-time homebuyers to invest a
responsible party for your own retirement savings in your first home.”
The proposal would apply to the purchase of new and existing homes.
“Whatever amount is invested, it will be paid back to your super when you sell the house, including the portion of the capital gain from the sale of that house,” Morrison said.
“The maximum amount that can be invested in this plan is the lesser of $50,000 per person or 40 percent of your total retirement balance.
“Superannuation is there to help Australians through retirement. The evidence shows that
The best thing we can do to help Australians achieve financial security in retirement is to help them own their own home.”
The prime minister said it was not right that you could use super for an investment property but not residential.
“You can now use your super to buy an investment property. But not in your own house,” she said.
“Other countries, like New Zealand and Canada, also have policies that allow people to use their retirement savings to help them buy a home. And under a Morrison government, you will be able to do that too.
“It’s about increasing, increasing the options available to you, within your supermarket. Is your money!”
The Pensions Minister, Senator the Hon Jane Hume, said the design of the scheme would ensure it was a “two for one” scheme.
“Under the Super Home Buyer Scheme, you continue to accumulate your super savings, in the house you live in. When you sell, the amount you invested is returned to your super, plus a portion of any capital gains,” Minister Hume said.
“It strikes the right balance, helping first-time homebuyers get on the market but protecting their retirement savings.
“Liberals know it’s Australian money, not superfund or government money. Australians work hard to earn it. They work hard to save it. A dollar in $10 of everything they earn is saved in supermarkets right now.”
“Retirement is there to help Australians through retirement, and the Super Home Buyer Scheme will ensure Australians can use the savings they are accumulating responsibly to improve their quality of life now and standard of living in retirement.” .
Labor campaign spokesman Jason Clare said in response to the announcement: “What we saw today was a last desperate act by a dying government.
“You shouldn’t have to raid your supermarket to buy a house, and you won’t with Labour.”
“We have to make it easier for Australians to buy their own home,” he said.
Labor leader Stephen Jones was also quick to criticize the plan.
“Scott Morrison has just shattered any vestige of economic credibility,” he said.
“Costello, Hockey, Turnbull…. all said super for housing was a dumb idea that would blow up the housing market.
“But Scott doesn’t give a fuck. It’s all about politics for this guy.”
Labor had announced an equity plan that would allow low-income workers to have the government cover 40 per cent of the cost of a new house and 30 per cent of an existing house.
As a result, the mortgage would be reduced by the same amount.
There are no income limits in the Coalition scheme that would allow you to withdraw up to $50,000 or 40 per cent of your pension.
Originally published as Coalition Announces New Super Home Buyer Scheme in Final Offering Days Before Election