Fitzgerald has doubts on super solution

The Liberal's Super Home Buyer Scheme allows Australians to take money out of their super to buy a home. 279280_02

By Jamie Salter

Garfield resident Tony Fitzgerald is campaigning for affordable housing and says the Liberal Government’s new policy won’t address the systemic issues of housing affordability.

Under the Liberal’s Super Home Buyer Scheme, first home buyers will be able to take out $50,000 from their superannuation to help with the purchase of their first home.

Mr Fitzgerald said the plan announced by Prime Minister Scott Morrison would not address fundamental issues including the need to build 500,000 new homes.

“The real issue is that a lot of young people haven’t got enough equity in their super to take money out and this clearly won’t allow people on low incomes to get into the housing market,“ Mr Fitzgerald said.

“Only people on a high income could get into the market.

“I feel very strongly about this; I’ve got two young adults who are feeling the effects and for any young person it really concerns me.“

The Super Home Buyer Scheme will start by Saturday 1 July 2023.

The scheme will apply to both new and existing homes with the invested amount to be returned to their superannuation fund when the house is sold.

Prime Minister Scott Morrison said supporting first home buyers was a key part of the Morrison Government’s Plan.

“Super should be harnessed to support the aspiration of many thousands of families who want to buy a home,” the Prime Minister said.

“Our Plan makes it easier for first home buyers to save for a deposit, reducing the time people need to pay rent, and also means a smaller mortgage with less debt and smaller repayments.

“It’s a Plan that gets the balance right – it utilises money that’s currently locked away to transform a family’s life, with the money then responsibly returned to the super fund at the time of home’s sale.”

Minister for Superannuation Jane Hume said this was a two for one win for Australians – a home and a return on retirement savings.

“Under the Super Home Buyer Scheme you keep building your super savings – in the home you live in. When you sell, the amount you invested is returned to your super – plus a share of any capital gain,” Minister Hume said.

“It gets the balance right, helping first home buyers break into the market but protecting their retirement savings.“