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| Nick Xenophon gives cautious support for letting first home buyers use superannuation | Nick Xenophon gives cautious support for letting first home buyers use superannuation |
| (35 minutes later) | |
| Senator Nick Xenophon has cautiously welcomed an idea reportedly being considered by the Turnbull government that would allow first home buyers to access their superannuation for a deposit. | Senator Nick Xenophon has cautiously welcomed an idea reportedly being considered by the Turnbull government that would allow first home buyers to access their superannuation for a deposit. |
| But he says he will not support any proposal that will be inflationary and warns the government must learn from the experience in Canada, where a similar policy backfired. | But he says he will not support any proposal that will be inflationary and warns the government must learn from the experience in Canada, where a similar policy backfired. |
| The prime minister, Malcolm Turnbull, is reportedly considering plans to allow first home buyers to dip into their super in a bid to improve housing affordability. | The prime minister, Malcolm Turnbull, is reportedly considering plans to allow first home buyers to dip into their super in a bid to improve housing affordability. |
| The plan would not allow first home buyers to simply take cash out of their super accounts. Rather, the government is considering a “shared equity scheme” where workers’ super funds would own a portion of the property or where money would be returned to the super fund when the property is sold, according to reports. | The plan would not allow first home buyers to simply take cash out of their super accounts. Rather, the government is considering a “shared equity scheme” where workers’ super funds would own a portion of the property or where money would be returned to the super fund when the property is sold, according to reports. |
| The assistant treasurer, Michael Sukkar, has said the plan could work if it was part of a broader policy package that increased housing supply. He said it would not work if it simply pumped more liquidity into already tight housing markets. | The assistant treasurer, Michael Sukkar, has said the plan could work if it was part of a broader policy package that increased housing supply. He said it would not work if it simply pumped more liquidity into already tight housing markets. |
| “We’ve got to be a bit more sophisticated about it and I’m confident we will be,” Sukkar said. | “We’ve got to be a bit more sophisticated about it and I’m confident we will be,” Sukkar said. |
| Xenophon has cautiously welcomed the idea, telling Guardian Australia that access to super should be part of the debate about housing affordability, though he warned the government to tread carefully. | Xenophon has cautiously welcomed the idea, telling Guardian Australia that access to super should be part of the debate about housing affordability, though he warned the government to tread carefully. |
| In 2014 Xenophon had pushed for first home buyers to access their super to pay for a deposit, arguing Australia ought to adopt a Canadian scheme that was apparently helping to boost housing affordability for Canadians. | In 2014 Xenophon had pushed for first home buyers to access their super to pay for a deposit, arguing Australia ought to adopt a Canadian scheme that was apparently helping to boost housing affordability for Canadians. |
| But he was criticised at the time by the former Canadian MP Garth Turner, who cautioned him against mimicking Canada’s policy. | But he was criticised at the time by the former Canadian MP Garth Turner, who cautioned him against mimicking Canada’s policy. |
| “Nick, I’m not loving your most recent crusade. In fact, I think you need a better research assistant because you’ve just messed up as far as Canada is concerned,” Turner wrote in an open letter. “We’re reaping the bitter harvest sown when that dumbass legislation passed. | “Nick, I’m not loving your most recent crusade. In fact, I think you need a better research assistant because you’ve just messed up as far as Canada is concerned,” Turner wrote in an open letter. “We’re reaping the bitter harvest sown when that dumbass legislation passed. |
| “Allowing first-time buyers to remove tax-free money to buy a modest home they could not otherwise afford, then restore it to their long-term retirement savings makes perfect sense in theory. In practice and experience, just the opposite [happened].” | “Allowing first-time buyers to remove tax-free money to buy a modest home they could not otherwise afford, then restore it to their long-term retirement savings makes perfect sense in theory. In practice and experience, just the opposite [happened].” |
| Xenophon says the Turnbull government should be mindful of Canada’s experience from the last few years. | Xenophon says the Turnbull government should be mindful of Canada’s experience from the last few years. |
| “We need to learn what has happened previously [in Canada] ... I don’t want to do anything that would be inflationary,” he said. “At the end of the day, we should make sure there’s a comprehensive package of measures that includes urban design, public transport and infrastructure that make a difference to where people can live, a whole range of measures in terms of what needs to be done. | “We need to learn what has happened previously [in Canada] ... I don’t want to do anything that would be inflationary,” he said. “At the end of the day, we should make sure there’s a comprehensive package of measures that includes urban design, public transport and infrastructure that make a difference to where people can live, a whole range of measures in terms of what needs to be done. |
| “At the moment it’s a crisis because there’s been this whole piecemeal approach to housing affordability that’s been counter-productive.” | “At the moment it’s a crisis because there’s been this whole piecemeal approach to housing affordability that’s been counter-productive.” |
| He noted the Turnbull government’s proposal seemed to be quite different from Canada’s policy, even though few details were known. | He noted the Turnbull government’s proposal seemed to be quite different from Canada’s policy, even though few details were known. |
| The Liberal backbencher John Alexander, who has been leading an internal party push on housing affordability, told Sky News on Thursday that he had been talking to Turnbull about housing policy changes, including changes to negative gearing. | The Liberal backbencher John Alexander, who has been leading an internal party push on housing affordability, told Sky News on Thursday that he had been talking to Turnbull about housing policy changes, including changes to negative gearing. |
| “I think time is of the essence, I think we need to act sooner rather than later,” he told Sky News on Thursday. “I think there’s been a pretty thorough examination of a lot of ideas, a lot of plans.” | “I think time is of the essence, I think we need to act sooner rather than later,” he told Sky News on Thursday. “I think there’s been a pretty thorough examination of a lot of ideas, a lot of plans.” |
| He also said he liked the idea of providing essential services workers – such as teachers, nurses, police officers, paramedics – with cheaper housing so they could afford to live in the suburbs in which they worked. | He also said he liked the idea of providing essential services workers – such as teachers, nurses, police officers, paramedics – with cheaper housing so they could afford to live in the suburbs in which they worked. |
| “Quarantining or allowing developers to build an extra floor on an apartment block, for example, just for those essential services workers, and giving them apartments at cheaper prices. What do you think of that idea?” Sky News host David Speers said. | “Quarantining or allowing developers to build an extra floor on an apartment block, for example, just for those essential services workers, and giving them apartments at cheaper prices. What do you think of that idea?” Sky News host David Speers said. |
| Alexander replied: “I think it’s a very important thing to address, both for essential workers and key workers. | Alexander replied: “I think it’s a very important thing to address, both for essential workers and key workers. |
| “There’s any number of things that could be looked at. Could you actually allow a key worker to have tax deductibility of their interest payment or a part of tax deductibility combined with being able to use their super? If they can get cheaper accommodation, that’s great.” | “There’s any number of things that could be looked at. Could you actually allow a key worker to have tax deductibility of their interest payment or a part of tax deductibility combined with being able to use their super? If they can get cheaper accommodation, that’s great.” |
| Labor has attacked the proposal to dip into super, with the shadow treasurer, Chris Bowen, labelling it a dangerous thought bubble that would increase financial risk, undermine retirement incomes, and bid up house prices. | Labor has attacked the proposal to dip into super, with the shadow treasurer, Chris Bowen, labelling it a dangerous thought bubble that would increase financial risk, undermine retirement incomes, and bid up house prices. |
| Turnbull told 2GB radio on Thursday that he did not want to discuss policy proposals that were in consideration for the budget. | Turnbull told 2GB radio on Thursday that he did not want to discuss policy proposals that were in consideration for the budget. |
| “The fact of the matter is there are a lot of submissions being made by many different people,” Turnbull said. | “The fact of the matter is there are a lot of submissions being made by many different people,” Turnbull said. |
| According to Industry Super Australia, the median super balance for 20 to 24-year-olds who submitted a tax return in 2013-14 was $6,405. For 25 to 29-year-olds it was $19,739; for 30 to 34-year-olds it was $37,705; for 35 to 39-year-olds it was $55,978. | According to Industry Super Australia, the median super balance for 20 to 24-year-olds who submitted a tax return in 2013-14 was $6,405. For 25 to 29-year-olds it was $19,739; for 30 to 34-year-olds it was $37,705; for 35 to 39-year-olds it was $55,978. |