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Coalition leader David Littleproud has defended Scott Morrison’s new homeownership plan that would allow first-time homebuyers to invest part of their retirement.

Labor has insisted that the policy revealed by the Prime Minister yesterday at the Liberal Party’s campaign launch would drive up prices. Former Labor Prime Minister Paul Keating, the architect of the compulsory superpayment, was one of the fiercest critics.

But Littleproud told Today this morning that the plan was a “modern solution to a modern problem.”

“This is what good governments should do, move and evolve with society, not get angry with what happened 30, 40 years ago.

“That’s a legacy Paul Keating wants to hold on to. Those angry men of the past should step aside… let the next generation deal with modern problems.”

Littlepround said the plan’s success would depend on state governments working with the Commonwealth to make more housing available.

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