Commentary
The Australian election campaign has seen a flurry of new proposals for dealing with the problem of housing affordability. There are some good elements, but mostly these proposals are bad.
The most promising idea is the Coalition’s proposal to allow first home buyers to borrow up to 40 percent of their superannuation balance.
The loan would be repaid, with capital appreciation, when the property is sold. So, unlike previous proposals to withdraw super for housing, this would not jeopardise the bipartisan retirement income policy. Indeed, if the policy is successful in getting more families into homeownership, overall security in retirement will be enhanced.
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