Compulsory superannuation is driving this mad idea


The Treasurer has been keen, reportedly, on letting younger Australians use some of their superannuation to help fund a purchase of their first home. Goodness knows why the Treasurer thinks this will make housing more affordable, but then again, economic literacy is not strictly a prerequisite for the job.  ScoMo reminds us of this law of the land almost daily.

The only, repeat, only reason that this pops up as a possible policy is due to the compulsory superannuation guarantee law. If the young did not have part of their wages compulsorily diverted by law into a ‘do not touch before age 60’ fund, then they could choose what to do with their money. They could spend it, invest it, buy education, buy property, or whatever they deem fit. I believe that people spending their own money make better decisions than Australian Treasurers dictating to them how to spend their money. Call me old-fashioned.

If the Treasurer thinks more carefully, he would prefer to abolish the SG than let people swap a superannuation asset into a real property asset.

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