Malcolm Turnbull joins chorus of derision on Hockey’s superannuation-for-housing idea

IT WAS the super idea designed to make buying your first home easier. But now, Malcolm Turnbull has joined the chorus of people openly bagging it.

Federal Communications minister Malcolm Turnbull (in white shirt) talks at Fiction Bar in Raby Bay, with MP Andrew Laming, addressing select students from schools in the Redlands area. Pic Jono Searle.

COMMUNICATIONS Minister Malcolm Turnbull has joined the chorus of people openly bagging Treasurer Joe Hockey’s suggestion to allow young people to dip into their superannuation to buy their first home.

The suggestion has been a national talking point since Mr Hockey floated the idea in order to make it easier for first home buyers break into the market.

Mr Turnbull, who is the former managing director of investment bank Goldman Sachs Australia, was asked in Brisbane yesterday whether he supported the concept and he failed to back up his Treasurer.

“My own view is that it would be a thoroughly bad idea,” Mr Turnbull said.

“I think this is a big supply-side issue and you’re not going to make housing more affordable by stoking up demand.

“And, of course, this is not what the super system was designed for.”

A pointed speech to the Brisbane Club yesterday has sparked fresh media commentary about Malcolm Turnbull’s leadership ambitions. Picture: Jono Searle

Mr Turnbull is the latest in a long line of politicians, economists and industry experts to trash Mr Hockey’s idea that superannuation could act as a “shock absorber” at various points in life, such as when buying a house or paying for training.

Mr Hockey’s right-hand man on budgetary matters, Finance Minister Mathias Cormann, is also on the record criticising the concept, saying it would not improve housing affordability and would actually drive up house prices.

Prime Minister Tony Abbott has encouraged debate on the issue, but former Labor prime minister Paul Keating and former Liberal treasurer Peter Costello have both knocked the proposal.

Four weeks after a failed spill motion to oust Tony Abbott from the prime ministership, The Australian has categorised the Cabinet split over super-for-housing as a “new display of tension at the top of government”.

Joe Hockey has reiterated that Australia needs to discuss making our super system more flexible.

Despite his colleagues deriding the concept, Mr Hockey reiterated on Lateline last night that Australians needed to have a national discussion about superannuation, given that we were living longer.

“I think it is an important debate to have and it links in with the issue about housing affordability … And the question is: how can we ensure that for people getting into their first home, they’ve got every opportunity to have the same entry into the market that we had and our parents had?” Mr Hockey told host Tony Jones.

Mr Hockey did, however, distance himself from the concept.

“I’m not spruiking it. I raised the idea in relation to superannuation, arguing the point that we have to, in the context of a longer life span, think about how we can maintain a reasonable quality of life throughout our life with various points in our life when we’re in and out of work,” he said.

“I’m not advocating that position other than to say: please, let’s have a measured, considered, bipartisan discussion about how we are going to maintain and improve our quality of life.”

Meanwhile, Mr Turnbull has sparked fresh media commentary on his leadership ambitions after a pointed speech to the Brisbane Club yesterday.

A Cabinet split over the super-for-housing proposal has been termed a “new display of tension at the top of government”.

The former Liberal leader said the Coalition had done a bad job at convincing Australians of the need for Budget reform, and he contrasted this with his own track record on selling the case for changes to the National Broadband Network and Australia Post.

“The more fundamental problem the 2014-15 Budget faced was that the public was not persuaded tough measures were necessary in the first place,” Mr Turnbull said.

He also echoed a comment he made during a memorable performance on Q&A last month, which was interpreted as a swipe at Tony Abbott’s political style.

“As I have said many times, the time for spin and slogans is over. The Australian people want all of us in public life to respect them, but laying out the challenges we face clearly and accurately, not insulting them with exaggeration or oversimplification,” Mr Turnbull said.

Malcolm Turnbull has spoken out against sloganeering politicians. Picture: Annette Dew