The Project presenter Lisa Wilkinson has questioned the Prime Minister’s new policy to help first-time homebuyers in a television interview.
Lisa Wilkinson has questioned the government’s latest policy to help first-time homebuyers unlock up to $50,000 from their super, suggesting it could cause “long-term financial pain.”
The host made the claims during The Project’s Sunday night show, where Retirement Minister Senator Jame Hume was interviewed about the Coalition’s announcement.
If re-elected, the government would allow would-be homebuyers to tap into his super if they want to use that cash to buy a property.
“Super is destined for retirement. Is it really responsible to encourage young Australians to seek short-term gain when they could end up in long-term financial trouble? ”, asked the ex-host of the Today program.
Senator Hume responded that the scheme was “quite the opposite” of what Ms. Wilkinson had suggested.
“One of the biggest indicators of financial security in retirement is whether you own your own home,” he said.
“Also, this policy allows you to take money out of retirement now to help you buy that first home but, when you sell the house, you put the money back into retirement, plus any capital gains.
“In coalition politics, you own your own home and save money for retirement.”
Asked by the panel if the policy could mean that young people “in the end don’t have enough super,” Senator Hume said, “not at all.”
“In fact, most people own their first home between the ages of 8 and 11.
“Of course, when you sell your house, that money goes back into your retirement, plus any capital gain you’ve made.
“Also, when you buy your first home, it creates stability, it creates financial certainty and security during your working life.
“Improve your quality of life during your working life. But because you’re back to being super at the end when you sell the house, you’re also improving your standard of living, your financial security, and also your retirement life.”
The policy provoked a lot of reaction on Sunday in all fields.
The Housing Industry Association (HIS) welcomed the Super Home Buyer Scheme, calling it an initiative that HIS had “supported.”
“Access to deposit financing is the biggest hurdle for Australians trying to buy their first home,” he said.
“Especially those who pay rent while saving for their deposit.
“This scheme builds on the many positive homeownership schemes that now exist to help first time home buyers achieve their aspiration of owning a home.
“Owning your own home is the best form of security for your future retirement.
“They are effectively borrowing from themselves.”
But not everyone was so welcoming.
Labor campaign spokesman Jason Clare called the scheme “the last desperate act of a dying government”.
“You shouldn’t have to raid your supermarket to buy a house, and you won’t with Labour,” he said. “We have to make it easier for Australians to buy their own home.”
Former Australian Prime Minister Malcolm Turnbull, who lost his leadership to Prime Minister Scott Morrison, took to social media to make his feelings on the scheme clear.
He tweeted an excerpt from his 704-page memoir, a bigger picturewhich explained that Morrison wanted to use the same plan seven years ago.
“He (Scott Morrison) was also interested in allowing first-time homebuyers to use their retirement savings for a home deposit, an idea I slammed back in 2015 for undermining the point of retirement and would likely only boost demand.” , said. he wrote.
The plan has been criticized by another former prime minister, this time from the other side of politics.
Former Labor Prime Minister Paul Keating said the plan was the latest bad move by “this intellectually corrupt government”.
“Liberals hate the superannuation system – they oppose Australian workers having access to wealth in retirement, independent of the government,” he said.
“Retirement tax concessions exist solely to produce retirement income for individuals.
“Next up is longevity care or HECS debt repayment, anything to drill into the money pool they fervently hate. If the public needs another idea to execute this intellectually corrupt government, this is a major offense.”
The Prime Minister announced the bold policy at Brisbane’s campaign launch on Sunday, revealing that, if re-elected, he will allow workers to raid his super to buy a house.
Workers will be able to withdraw up to $50,000, but the scheme will not start until July 1, 2023.
There are no income or property limits under the scheme, with eligibility restricted to first-time homebuyers who must have separately saved five per cent of the deposit.
Originally published as The Project host Lisa Wilksinson questions the latest housing plan