Hockey contemplates first home buyer access to superBY LAURA MILLAN | MONDAY, 9 MAR 2015 12:10PMThe superannuation industry has reacted strongly to Treasurer Joe Hockey's comments that suggest the government could allow young Australians access to their superannuation to buy their first home. Related News |
Editor's Choice
Janus Henderson acquires NBK Wealth, Tabula Investment Management
Janus Henderson has acquired the wealth management arm of the National Bank of Kuwait, NBK Wealth, as well as European ETF provider, Tabula Investment Management.
ART names advice and education leads
Australian Retirement Trust (ART) has revamped its advice, guidance and education team and created two new leadership roles.
Men, women in same occupation drive pay gap
A whopping 80% of the gender pay gap can be attributed to women being paid less than men within the same occupation, a new economic analysis shows.
Macquarie Group profits falls 32% to $3.52bn
Macquarie Group has reported a net profit of $3.52 billion for the year ending 31 March 2024, a 32% decrease from the previous year.
Products
Featured Profile
Robert De Dominicis
CHIEF EXECUTIVE OFFICER
GBST HOLDINGS LIMITED
GBST HOLDINGS LIMITED
It was during a family sojourn to the seaside town of Pescara, Italy, Rob DeDominicis first laid eyes on what would become the harbinger of his future. Andrew McKean writes.
Singapore's "superannuation" system has been set up with three purposes: 1. to save for retirement; 2. to pay for medicals and doctor visits; and 3. provide deposit for first home. Housing affordability is also a challenge in Singapore and hence their version of "Superannuation" is to help alliviate this problem. Perhaps we could look into this model to see where we could learn and apply? In addition we should look at why our housing market is so inflated? Could it be due to the leniency we allow foreign investors/buyers??
Me thinks that this could be the precursor to including the principal place of residence in the Centrelink Asset Test.
Hockey's suggestion that a person's super could be used to partly fund homeownership is a poor idea, particularly when comparisons with Singapore are included in the argument.
Singaporeans save more than Australians through compulsory saving with 2 separate accounts. One is for retirement purposes and the other can be accessed for non-retirement purposes, such as health, education and housing.
Australians need to save more and stop looking for unfunded taxpayer handouts.
I never in a million years thought I would ever agree with David Whiteley on any issue regarding Superannuation, however, here I am doing just that. This is very dangerous ground and I believe the concept is flawed.
What about the government look toward a re-structure of Stamp Duty costs for first home buyers in addition to a dramatic reduction in Real Estate agents commissions for sales relating specifically to first home buyers in order to reduce up front costs in obtaining the first home?
Can you imagine the impact on house prices if, literally overnight, the 5 million Australians adults who don't yet own a home suddenly have access to a deposit to purchase their first home. Property in some price segments would go up 40% in the first 12 months alone.
It would sure win a lot of votes with young people though. Clearly Hockey is long on real estate, short on the superannuation industry.
It should be noted that the contribution rates to super are 37% in Singapore. 20% employee, 17% employer....I am sure that wouldn't popular with voters (or business) if we went down that path.