Only a jackass would breed a mule

Allowing young Australians to access their super to fund home purchases is tantamount to crossing a quarter-horse with a donkey to deliver a not very pretty mule.

We are now just weeks out from the Federal Budget and it is to be hoped that the Prime Minister, Malcolm Turnbull has prevailed in ensuring that his Treasurer, Scott Morrison, has not given life to allowing young Australians to access their superannuation to help fund home purchases.

The notion of allowing people to access their superannuation to fund home purchases rates as one of the hardiest of hardy annuals – every year or so certain figures in the property development and real estate industries dust off roughly the same old plan and retail it to politicians who are either too electorally desperate or too intellectually limited to see the obvious shortcomings.

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Looked at objectively, allowing young Australians to access their superannuation to gain entry to an already overheated housing market represents giving birth to a mule – a cross between a horse and a donkey.

The Australian superannuation system, if not a thoroughbred, is a bloody good stock horse that is getting the job done. The Australian housing market is proving to be a bilious jackass. Putting the two together would create a legislative mule and the Treasurer of the day would thereafter be known as a mule-breeder.

There was a very good reason why only a very short time ago both the Australian Labor Party (ALP) and the Coalition Liberal and National parties were broadly agreed on the need to define an “objective” for superannuation and to minimise legislative tinkering with the superannuation system. Both sides of the Parliament recognised the need for certainty.

However, desperation combined with lack of imagination can cloud political and economic judgements and the more than $3 trillion in Australian superannuation assets has always been a temptation which needs to be quarantined from those who cannot see beyond the expedient quick fix.

The purpose of superannuation has always been to provide for a comfortable retirement while relieving pressure on the Age Pension.

Successive Intergenerational Reports have reinforced the importance of this purpose based on an ageing population putting increasing demands on the social welfare system.

Then, too, the Government needs to recognise that Australia’s housing market has become significantly over-heated in the major capital cities and that the Australian Securities and Investments Commission (ASIC) has identified shortcomings in the mortgage lending regime.

This, when combined with the latest research from Deloitte Access Economics that there is a real danger of rising interest rates forcing increasing numbers of Australian mortgage-holders into financial stress, should be reinforcing the need to quarantine superannuation.

Based on this, it is to be hoped wiser heads will prevail in the Cabinet room.

The damage which will be created by seeking to deliver a legislative mortgage/super mule will be upwards of 40 years in the making and those young Australians with insufficient retirement incomes in 2057 will rightly be able to consider those responsible to be jackasses.




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Although this article does promote the very valid need and reason for superannuation, it fails to accept that superannuation has failed the majority of people it was supposed to help. When superannuation was first released in 1992 at 3% I built my business on it and advised and guided many people. Yet figures from the ABS state that the average mean of the greatest financial asset in most dwellings is superannuation at 131,000 and half of those people had less than $60,000. Yet 50% of Australians arrive at retirement carrying over mortgage and personal debt which further diminishes the accumulated value.
What's left over is likely to last far less than 10 years and the pension needs to be used as a supplement rather than a privilege which means more and more retirees are needing to remain in the workforce where possible or eventually consider living in poverty. Something Bob Hawke championed when he said 'by 1990 no child will be living in poverty.' But he didn't say anything about retirees.
Superannuation as an idea hasn't failed, but the financial industry has raped,pillaged and plundered the members contributions for fees, commissions, and bonuses for their own corporate gain and greed. And it continues today!
Financial literacy which is touted but never seen or heard of. The government trots out well known names who all talk big and shine bright in the limelight, but continue to profit from the very same people they supposedly serve.
The only reason using super for buying a house is stupid is because it will provide a deposit for those who can ill afford it.
Most people in their 30's to mid 50's are stuck paying off debt given to them by the very same institutions which control their retirement funds. It's like having Dracula in charge of the blood bank. The government profits form the (declared) profits of these institutions who are bleeding dry the consumers of this country.
This is the problem which is not being addressed by government. There is no widespread financial literacy program or education on how people should pay down debt before committing to living like the Joneses, all promoted by banks lending out on equity - again! Banks who virtually throw credit cards at consumers like confetti and then suck them into refinancing the debt and the home.
Too many people are on the edge of losing their homes, for which the finance is controlled by the banks.
The world is changing and jobs are being lost without being replaced by new ones. The financial planning industry sells insurance (bank) company policies but doesn't give financial advice.
Consumers suck up whatever rubbish they are fed by the banks and funds that keep control over their money.
Don't worry about donkeys, mules or asses because the financial industry continues to control the mushrooms!
Kept in the dark and fed manure! This isn't what advisers sell, but it's what they controlled to sell. And then forced into more education for no good reason other than it satisfies the limited intelligence of those who hold paower in government and need to be seen to be doing something.
The greatest problem this country faces is the ever increasing debt problem fuelled by government and credit and housing. It is this problem which will help to solve the future crisis of people living in poverty and drawing on an ever-strained and diminishing public purse to pay social security and pensions.
All the time politicians continue to hand themselves lifetime benefits for part-time contributions. Another rort, but there's no public accountability or further education they are required to undertake to prove they are worthy to serve and receive current and future benefits. It's a bit like upfront commissions and trail when they leave.
Teach your children well, and teach them about eliminating debt and be money masters rather than become money slaves to the banks. Then they might have money to buy their own house, as long as they are prepared to travel 2 hours to get to work and then back home again!

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