The idea that young Australians should be able to dip into their super to help buy their first home keeps going round and round. The most recent iteration put forward by the Coalition’s Tim Wilson and a clutch of other backbenchers has the catchy slogan Home First, Super Second.
Wilson and co. are right in their diagnosis: Australia has a housing affordability problem. But they are wrong in their prescription: their proposal could actually make housing less affordable.
There are several much-better ways to revive the great Australian dream for young Australians.
Home ownership is plummeting
In Australia today, fewer than half of 25-34 year-olds own their home.
Home ownership among the poorest fifth of that age group has fallen from 63% in 1981 to 23% today.
- ^ Home First, Super Second (www.youtube.com)
- ^ falling fast (theconversation.com)
- ^ two-thirds of retirees (nationalseniors.com.au)
- ^ Retirement Income Review (treasury.gov.au)
- ^ suffer financial stress (grattan.edu.au)
- ^ biggest hurdle (insidestory.org.au)
- ^ Bank of Mum and Dad (www.smh.com.au)
- ^ What matters is the home: most retirees well off, some very badly off (theconversation.com)
- ^ $20,000 (blog.grattan.edu.au)
- ^ Early access to super doesn’t justify higher compulsory contributions (theconversation.com)
- ^ get more houses built (theconversation.com)
- ^ research (grattan.edu.au)
- ^ RBA research shows that zoning restrictions are driving up housing prices (theconversation.com)
- ^ provide incentives (grattan.edu.au)
- ^ put forward (joebiden.com)
Authors: Brendan Coates, Program Director, Household Finances, Grattan Institute