Scott Morrison’s super plan slammed by Labor focus groups

Prime Minister Scott Morrison’s super-for-houses plan has been blasted by Labor focus groups with concerns it will “inflate house prices even more”.

EXCLUSIVE

Voters have expressed strong concerns about Prime Minister Scott Morrison’s super-for-houses plan in Labor focus groups overnight with concerns it will “inflate house prices even more”.

Under the plan, voters would be able to raid their super for up to $50,000 to buy a house – as long as they already had $125,000 in super or up to 40 per cent of whatever savings they had.

Overnight, the ALP spoke to voters in focus groups in the electorates of Bennelong in NSW, Pearce in WA and Deakin in Victoria about the idea.

All three seats are on the ALP’s possible list although Deakin, which is held by the Housing Minister Michael Sukkar who devised the policy, would be less likely than the other seats.

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Voters have expressed strong concerns about Prime Minister Scott Morrison’s super-for-houses plan in Labor focus groups. Picture: Asanka Ratnayake/Getty Images

The news is not good for the Prime Minister on the super for houses plan according to voters with one suggesting it “sounds great at first, but look at the fine print”.

“If this was such a good idea why didn’t he do it until the week before an election,’’ said one voter.

“I’m not sure they’ve thought this through,” another voter told the focus group.

“The intention is good, but will have the opposite effect,” said another.

The impact of the scheme on house prices was a big concern. On Monday, Superannuation Minister Jane Hume suggested it might have an impact in the short-term.

This was also a factor that had voters worried in the focus groups.

“It will just inflate house prices even more,” said a voter.

“Super is for your retirement. (It’s) putting a band aid solution on something that will create bigger problems down the track.

“We can’t afford to put everyone on the pension.”

Under the plan voters could raid their super for up to $50,000 to buy a house if they already had $125,000 or up to 40 per cent of whatever savings they had. Picture: David Crosling/NCA NewsWire

Labor strategists reported that there seemed to be two major objections.

“We were in a few places last night. Bennelong, Deakin and Pearce,’’ a Labor source said.

“In all three places, people didn’t like it. They seem to have sort of two objections. One was they thought it would just inflate house prices.

“So there was a view that it had been poorly thought through. And there was a real cynicism about it. Voters were saying, ‘The elections are in six days and they come out with this?’ So it was sort of a bit of a sense of coming so late.”

Senator Hume on Monday revealed they expected it would lead to a rise in housing markets, prompting Mr Frydenberg and Mr Morrison to run damage control.

“We understand the impact it‘s going to have on the housing market, and when it comes to prices it will be immaterial or marginal,” Mr Frydenberg told the Today show.

“It‘s (going to get) 100,000 buyers into the housing market and … we’re saying you can access $50,000,” he said after the third time Stefanovic asked.

“That means if every single person accesses it, that‘s $5bn a year. Now every year there is $700b of transactions in the residential housing market.

“So Karl you do the math – $5bn versus $700bn.”