The Prime Minister is, according to reports, “actively considering” allowing first home buyers to use their superannuation to directly invest in their own housing.
The model apparently under consideration is a ‘shared equity’ scheme where the super fund invests in the property of the member, not withdrawing superannuation to fund a deposit.
Malcolm Turnbull has previously called such proposals a “thoroughly bad idea”. Last week Assistant Treasurer Michael Sukkar left open the possibility that first home buyers would be allowed to access superannuation for housing, provided supply was also increased so it didn’t simply increase prices.
Allowing first home buyers to have their super fund take part ownership in their housing has been raised on several occasions by Liberal MP John Alexander, including in Parliamentary Committees and more recently in media appearances.
According to the same report, Mr Alexander has discussed the proposal with the PM, who also held talks on the topic on Monday night.
In February it was reported that the Government was considering allowing first home buyers to withdraw a portion of their voluntary super contributions to put towards a deposit.
However such policies has been strongly criticised by the superannuation industry and is opposed by Labor, with Shadow Treasurer Chris Bowen calling the idea “stupid”.