ANALYSIS: Could super be used to buy a house? Labor's new definition may decide
In the 2022 election, Scott Morrison promised to allow first home buyers to access a large slice of their superannuation for a deposit. Dutton has recommitted the Coalition to the policy.
When Anthony Albanese was asked on Wednesday whether a definition of superannuation's purpose would rule out the policy the Liberals had offered, he declined to pre-empt the process.During the pandemic, the Morrison government allowed people to access $20,000 of their superannuation. This was a bad judgement. A massive $36 billion was taken out. Many, especially younger people, have been left worse off for the future as a result.
So there is a case for the proposed objective to be flexible enough to encompass a policy allowing a limited dip into super for a first home. This would be consistent with Labor saying that, for its part, it does not believe super should be used for this purpose.Meanwhile, the government is examining the tax breaks available for superannuation."Australians shouldn't expect major changes to superannuation," Chalmers declared. That at least left some room to manoeuvre .
The Grattan Institute's superannuation expert, Brendan Coates, puts it bluntly: "Superannuation has become a taxpayer-funded inheritance scheme." By 2060, Treasury estimates one-third of all withdrawals from superannuation will be paid out as bequests.The concessions, with their ballooning cost to revenue, clearly should be trimmed, on the grounds of budget cost and equity.
The desirability and viability of such collaboration – Chalmers emphasises participation would be entirely up to funds – would depend on particular circumstances. The initiative would require maximum caution by funds and government. The risks are obvious.
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