Using superannuation savings to help buy a first home?


Stupid idea. Ridiculous. Mind-bogglingly bad.

The Treasurer was contemplating, according to media reports, allowing those who have not yet entered the residential property market a relaxation of the superannuation preservation rules. They would be allowed to withdraw an amount from superannuation to help fund a first home purchase.

The unaffordable house prices in Australian capital cities are not caused by a lack of demand. They are caused by a lack of supply. Throwing more money at the existing supply will increase the house prices, not reduce them.

At the same time, the embryonic retirement savings of the young will be set backwards.

And this man is Treasurer.

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