The Project host Lisa Wilksinson questions latest housing scheme

The Project host Lisa Wilkinson has questioned the Prime Minister’s brand new policy to help first homebuyers in a TV grilling.

Lisa Wilkinson has questioned the government’s latest policy to help first homebuyers unlock up to $50,000 of their super, suggesting it could cause “long-term financial pain”.

The presenter made the claims during The Project’s Sunday night show where Superannuation Minister Senator Jame Hume was interviewed about the Coalition’s announcement.

If re-elected the government would allow prospective home buyers to tap into their super if they are wanting to use that cash to buy a property.

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Lisa Wilkson questioned the Coalition's latest housing scheme. Picture: The Project.

“Super is meant for retirement. Is it really responsible to encourage young Aussies to go for short-term gain when they could end up with long-term financial pain,” the former Today show host asked.

Senator Hume hit back that the scheme was “quite the opposite” of what Ms Wilkinson suggested.

“One of the greatest indicators of economic security in retirement is whether you own your own home,” she said.

“Moreover, this policy allows you to take money out of superannuation now to help you buy that first home but, when you sell the home, you put the money back into superannuation, plus any capital gains.

“In the coalition’s policy, you own your own home and you save money for your retirement.”

When questioned by the panel if the policy could mean young people “don’t have enough super in the end”, Senator Hume assured, “no, not at all”.

“In fact, most people own their first home for somewhere between 8-11 years.

“Of course, when you sell your home, that money goes back into your superannuation, plus the capital gain that you’ve made.

“Moreover, when you buy your first home, it creates a stability, it creates certainty and economic security during your working life.

“It improves your quality of life during your working life. But because it goes back into super at the end when you sell the home, you’re also improving your standard of living, your economic security, and your retired life as well.”

Senator Jane Hume is backing the scheme. Picture: Supplied.

The policy sparked much reaction on Sunday across all fields.

The Housing Industry Association (HIS) welcomed the Super Home Buyer Scheme, calling it an initiative one the HIS had “championed”.

“Access to finance for a deposit is the biggest obstacle for Australians trying to buy their first home,” he said.

“Especially those paying rent while saving for their deposit.

“This scheme builds on the many positive home ownership schemes now in place to support first home buyers achieving their aspiration to own a home.

“Owning your own home is the best form of security for your future retirement.

“They are effectively borrowing from themselves.”

But not every one was so welcoming.

Labor’s campaign spokesman Jason Clare called the scheme a “last desperate act from a dying government”.

“You shouldn’t have to raid your super to buy a home, and you won’t under Labor,” he said. “We’ve got to make it easier for Aussies to buy their own home.”

Former Australian Prime Minister Malcolm Turnbull, who lost his leadership to Prime Minister Scott Morrison, took to social media to make his feelings on the scheme plain.

He tweeted an excerpt from his 704 page memoir, A Bigger Picture, which explained Mr Morrison wanted to use the same plan seven years ago.

“He (Scott Morrison) was also keen to allow first-home buyers to use their superannuation savings 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,” he wrote.

The plan has was criticised by another former prime Minister, this time from the other side of politics.

Former Australian Prime Minister Malcolm Turnbull current Prime Minister. Picture: Supplied.

Former Labor PM Paul Keating said the plan it was the latest bad move from “this 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.

“The Superannuation taxation concessions exist solely to produce a retirement income for people.

“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 Prime Minister announced the bold policy at the Brisbane campaign launch on Sunday revealing that if re-elected he will allow workers to raid their super to buy a house.

Workers will be able to withdraw up to $50,000 but the scheme won’t start until 1 July, 2023.

There are no income or property caps under the scheme, with eligibility restricted to first homebuyers who must have separately saved five per cent of the deposit.

Originally published as The Project host Lisa Wilksinson questions latest housing scheme