Industry Super Australia (ISA) has slammed the NSW Minister’s policy proposal to allow young people to access their superannuation to buy their first home.
While reports suggested the proposal was garnering favour within government ranks, ISA chief economist, Stephen Anthony warned this could increase house prices while failing to address supply issues, while depleting retirement savings.
“In the housing affordability debate, the focus should be on land release, regulation, and tax subsidies that fuel investment in existing property rather than new buildings,” Anthony said.
He added that allowing first home buyers to access their super early would pull the brakes on a retirement system that was not yet mature.
“It’s simply bad policy,” he said.
The policy proposal also defied the Government’s objective of super announced last year, which was “to provide income in retirement to substitute or supplement the Age Pension”.
