Hitting up super for first home deposits ‘a stupid idea’

A proposal to allow people to access their super for a home deposit has been criticised as ‘a stupid idea’.

Labor has lashed a Coalition ‘thought bubble’ for first home buyers.

A proposal to allow young people to access their superannuation for a home deposit has been criticised as a perennial Coalition “thought bubble” that has been previously dismissed by Malcolm Turnbull as a “thoroughly bad idea”.

As revealed in The Australian yesterday, MPs are pushing Scott Morrison to consider allowing young people access to their superannuation funds to help them pay for a deposit on their first home.

Under the mooted plan, young people would be able to withdraw the same amount from their ­employer super contributions as they made to their own fund in ­voluntary contributions.

Industry super funds yesterday warned against the plan, saying it would reduce retirement savings, drive up housing prices and do nothing to address supply.

“In the housing affordability debate, the focus should be on land release, regulation and tax subsidies that fuel investment in existing property rather than new buildings,” Industry Super chief economist Stephen Anthony said.

“Allowing first-home buyers early access to their super will set back a retirement income system that is still struggling to fully ­deliver.”

Opposition Treasury spokesman Chris Bowen criticised the Coalition for revisiting the ­proposal, which was floated by ­former treasurer Joe Hockey in 2015 but dismissed by Mr Turnbull and Finance Minister Mathias Cormann.

“This stupid idea … would wreck the retirement incomes of many hundreds of thousands of Australians,” Mr Bowen said.

“It’s hard to think of a ­better way of reducing people’s ­retirement incomes, than eating away superannuation in the early years.”