Liberals spruik super solution for home ownership and retirement goals

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Scott Morrison told voters he wanted to give individuals the option of buying their own homes, at the first press conference since he announced the policy over the weekend.

The Prime Minister said Labor does not want individuals to be empowered to use their pension money as they see fit.

“They think it’s their money telling you what to do,” Morrison said of Labour’s stance on pension funds.

The pension system was designed to increase the old-age pension based on retirement income.

“I believe it’s your money and you have access to your own money to help you buy a house. The only way to do that is to vote Liberal and National next Saturday,” Morrison said.

If the government returns to power, the Super Home Buyer Scheme will start on July 1, 2023.

The policy was unveiled at the Liberal Party’s campaign launch on Sunday, where the Prime Minister said first-time home buyers could use up to 40% of their retirement pension (and a maximum of $50,000) to buy a home sooner.

Those eligible to participate in the program must have saved 5% of the down payment for their property purchase.

“The program will apply to new and existing homes, with the amount invested to be returned to their superannuation fund when the home is sold, including a share of any capital gains,” Morrison said in a statement.

“That means a person’s super is leveraged to buy a first home while protecting their long-term savings plan for retirement.”

The Prime Minister said in a press kit on Monday that his policy had been carefully considered and was based on the view that people who owned their homes at retirement age were better off.

The LNP calculated that the policy can help first-time home buyers afford a home purchase three years sooner than if they had otherwise saved up using mainstream means.

“Our plan makes it easier for first-time home buyers to save for a deposit, which reduces the time people need to pay rent, and also means a smaller mortgage with less debt and longer repayments. little ones,” Morrison said.

The Prime Minister responded to questions about the lack of housing supply in Australia and whether his scheme would further drive up house prices by arguing that with the new downsizing policy, more accommodation would be available. The downsizing policy offers a $300,000 retirement concession to seniors over age 55 who choose to sell a primary residence they’ve owned for 10 years or more.

“It means putting downward pressure on what is otherwise increasing pressure. The number one problem driving up house prices in this country is the lack of supply,” Morrison said.

“When you look at the proportion of first-time home buyers in the overall real estate market, it’s pretty marginal,” he said, adding that he didn’t think more home buyers would a first home would drive up house prices drastically.

Morrison turned 54 this month.


READ MORE:

Election 2022: something is missing in the housing battle


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