Coalition to consider nest egg for first home buyers

The Coalition will look to expand on its proposal to allow people to raid their super in a bid to help more Australians get into the housing market if it wins the election next year.

Australian house prices hit a record high for fifth consecutive month, making it increasingly difficult for new home buyers to get into the property market.

The Coalition will look to reduce red tape pushing up the price of lending and expand on its proposal allowing people to raid their super in a bid to help more Australians get into the housing market if it wins the election next year.

The opposition’s housing spokesman Andrew Bragg has signalled the Coalition is considering expanding its proposal to allow first home buyers to draw down more than $50,000 of their nest egg to purchase a home in a major speech to the Sydney Institute on Tuesday night.

Senator Bragg has also warned young people are being squeezed out of the property market due to duplication in responsible lending laws and prudential standards adding to unnecessary costs on people borrowing money for deposits.

Senator Bragg attacked Labor’s housing agenda, claiming it was designed for corporations and foreign investors rather than individuals.

He said that Labor “clearly believes the major super funds and foreign fund managers are the only solutions to the housing crisis” and that the government’s policies will see people become “serfs to foreign fund managers or local union superfunds”.

Housing is expected to be a major feature of Peter Dutton’s pitch for the prime ministership, with Coalition MPs expecting planning reforms and unlocking superannuation for deposits to be in a package unveiled before the election.

The Coalition is considering an expansion of its pre-election Super Home Buyer scheme, which is designed to help young Australians compile a deposit for their first home by drawing up to $50,000 of their superannuation.

Branding the policy “a good start”, Senator Bragg suggested the Morrison-era initiative may be expanded as a way to “hasten home ownership”.

“Our policy from the last election was a good start and the report will set out options to allow Australians to make their own judgments – to maximise first home ownership and to hasten home ownership,” Senator Bragg said,

“Next week, the Senate will hand down its first report on super for housing. It will present ideas to improve on the Coalition’s policy to open super for first home buyers.”

Senator Bragg said also commit to looking at the regulatory burden of lending costs for banks, warning high levels of red tape is forcing up the price of borrowing for Australians.

The Australian understands the opposition will look to a model in Singapore where regulators consider the impact of capital adequacy provisions on the economy.

“We can have banks which are both unquestionably strong but easily able to lend to first home buyers,” Senator Bragg said.

“Although APRA’s approach to bank capital arrangements have resulted in reduced risk, they may have also contributed to less growth and fewer first homeowners.

“Getting institutions to better serve aspiration could form part of an alternative to Labor’s corporatist approach.

“This will be challenging policy terrain as we consider the impact of the various capital adequacy and responsible lending laws. But we must try.”

Senator Bragg said the Australian dream of home ownership is “turning into a nightmare” and that the country was “failing a generation of young people and is locking in a poor outcome for these people” because of key structural factors including planning issues, low construction rates, soaring migration and a lack of supply.

In reference to the 2024 ANZ CoreLogic Housing Affordability Report, Senator Bragg will note that the median house price in Sydney is now almost 12 times the average household income.