Your super under attack
Former Prime Minister Paul Keating has described the Liberal party’s policy to allow people to access superannuation to obtain housing deposits as “another frontal assault by the Liberal Party on the Superannuation system”. I agree with Mr Keating.
In a statement today, 15 May 2022, Mr Keating, who was the architect of the superannuation scheme, says the policy is an attack on the role of government in public life. Further, Mr Keating said:
“The Liberals hate the Superannuation system – they object to working Australians having wealth in retirement independent of the government.
The Libs believe ordinary bods should be happy with the Age Pension. Let them know their place.
The Superannuation taxation concessions exist solely to produce a retirement income for people. Its key is preservation. Accumulated funds preserved to age 60 so working people secure the power and benefit of compounding.
Preserved, Superannuation savings, double roughly every eight years. Over a 40-year working life, at 12% contributions, savings should accumulate to approximately $2million in today’s dollars.
Too good for them, says the Liberal Party. We’ll let them pilfer it away in the supposed good cause of housing deposits. Next it will be aged care or longevity or paying out HECS debt – anything to puncture the pool of money they do fervently hate.
If the public needs yet another idea to put this intellectually corrupt government to death, this is an important offence – and with the government, its unprincipled Prime Minister.”
I concur again with Mr Keating. The Morrison Government have failed in their economic management overall, including housing, as they have allowed prices to surge and there is now a lack of supply of affordable housing, which has resulted in the cost of housing reaching a level that now places owning a first home out of reach for many young families. Indeed, it’s highly unlikely many first home buyers would have enough super to make a deposit on a home, but in any event accessing superannuation is killing two elements of the economy with the one stone.
The proposed housing solution policy being put forward by Anthony Albanese and the Australian Labor Party is the only sensible solution to the housing crisis.
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13 comments
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andy56
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David Stakes
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Phil Pryor
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Andrew J. Smith
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Albos Elbow
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fossil
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Terence Mills
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GL
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Harry Lime
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New England Cocky
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Terence Mills
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Albos Elbow
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ajogrady
Return to home pagewell actually, this is a good move . Its going to start the questioning of this outrageously stupid fantasy.
Super is the answer when governments were asked to raise pensions. Its a new trillion dollar industry that was supposedly a cash cow for governments but has now become a drain.
Implement a UBW and eliminate super. If the UBW is high enough, we can eliminate the scourge of interfering governments who only know how to inflict pain.
Housing prices is a total disgrace.
And even worse, flogging your house when your older. Making a profit, putting that in a non gov super scheme of course. And then losing access to the age pension. Because you made some money. A cunning plan indeed Scotty.
P M Morrison, now clearly the DUMBEST and most economically illiterate bullshitter around, says one dollar will now be TWO. Miracle. Just tear up your dollar, or cut the coin, and like the magic pudding, it will restore itself into TWO, so you can rally have one in housing and one in superannuation. Disney, Capone, Ponzi, anyone horrible, might have put this up, because there is a sucker born constantly and money can grow on trees, in Morrison’s muckheap merdey mind, and now, in both housing and superannuation. Two real dollars for one, yes, at a dirty rotten conservative party launch near YOU.
Effectively having the property and/or FIRE sector subsidised by part pensions if buyers using significant part of their super, hence, may need to apply for a pension in retirement (with decline in working age vs. retirees, for PAYE taxes); the best economic managers or supporting a rentier economy for corporate donors?
Dick Head Scummo the Liar has just annouinced another way to increase the value of his and all his rich mates housing portfolios.
Letting people use their Super to buy a house is just once again, going to increase demand and push up house prices and rents further and make homes even more un-affordable for young people and newlyweds.
The problem is the lack of supply of houses to buy and rent and no increases in community housing projects.
When he allowed young people to access super during the pandemic lockdowns, they actually spent 90% of it on gambling and alchohol to the tune of 3.9 billion dollars.
Did it ease their cost of living, motgage or rent stress or just make things worse because they blew their super and don’t have any money for retirement?
Who did that benefit? Oh yes, it benefitted his wealthy political donors who sell alchohol and gambling.
Once again it shows beyond a doubt who COAL-NP are actually governing for and it isn’t the average Australian.
Don’t be fooled.
Lets get rid of these fuckwits when you vote next Saturday and don’t forget a vote for Palmer’s UAP or Hanson’s One Nation is still a vote for Scummo.
Economic vandalism, 3 days before the mandatory media blackout so there is little time to consider the merits of this policy.
Access to $50,000 per person, means a couple will potentially have $100,000 for a deposit.
What will the Reserve Bank do when housing prices rise sharply in response (inflation) ?
If the average price of housing rises by $100,000 expect a similarly sharp rise in interest rates.
Will new and existing owners be able to service their mortgages if interest rates go as high as they did in the late 80s (15% – 18%)?
In a worst case scenario this could crash the economy.
What caused the global financial crisis?
Will economists call this out in time to show electors the insanity of this policy and will mainstream media publish it?
Minister Jane Hume gave it away several times in her interview with Patricia Karvelas on the ABC this morning, that this policy hasn’t been thought through and it appears to be another brainfart from Morrison.
If a first homebuyer draws down the maximum of $50,000 (from a super balance of at least $125,000) it could only be applied to afirst home and when that home is sold the money Must be repaid back into the super scheme together with a proportion of any profits.
So, most people after selling a home would buy another but their available equity would be reduced as they could not apply the superannuation draw down a second time.
This policy is a sad reflection of what happens when parties just want to announce something and ministers who then have to support the policy even though it is full of holes.
Morrison is saying that he is just ‘warming up’ which you can take as a threat, he hasn’t finished with us yet. A strong argument for voting for an independent if you can’t vote for Labor or the Greens.
This Scummo brain fart smacks more of a multilayer tax grab rather than being a genuine effort to help people into a home.
Jane Hume? Just another parrot in a cacophony of squawking bird brains.Speaking of which,the Eagle might have given the Liar the nod last time,but this time around, is about to shit on him…from a great height.
Yes Terence, another ”brain fart” from Scummo, the Liar from the Shire.
If I remember correctly, Jane Hume is is a former bank employee, so it appears she believes that her position as Minister will survive the 21 May 2022 election.
@ Harry Lime: And eagles can climb to great heights to do their defaecations.
It’s time!! Again!!
Jane Hume also said in a moment of unusual truthfulness and integrity that with this scheme, housing prices would rise initially and then presumably drop ; so is she anticipating a recession ?
Morrison has said that is wrong because only good things happen when he’s prime minister .
The Liberal Party fears the growing power of industry super funds on issues like social equality and climate action. So they’re determined to wreck the entire sector if they can.
Not only have they tried to smash the Super industries’ growing power to invest ethically in things that actually benefit society, they are introducing laws to encourage people to fritter away their super on alchohol and gambling by giving younger people early access to it.
Its your money, not theirs, but they are getting you to use it rather than provide much needed government assistance to help people get into housing or a rental home and extra money to survive the damages of the pandemics.
It’s been clear for some time that sections of the business community, and members of the Liberal Party, have decided it’s better to attack the entire superannuation sector than to allow the industry super sector to continue to grow.
That sentiment has now crystalised in the campaign, led by the minister responsible for superannuation, Jane Hume, and championed by backbench MPs like Andrew Bragg and Tim Wilson, to cancel the forthcoming increase in the superannuation guarantee level, force people in financial need to draw it down during a pandemic and con people into using it to buy a house when they know that it will only make house prices and rents go up to inflate wealthy peoples’ bank accounts at the expense of the poorer members of our communities.
As usual Morrison and the L/NP have come up with a policy that is not only short sighted but does not do what it is stated to achieve.
Number 1. They are not savings. You do not get the tax breaks on your savings compared with Super for a reason. Its for peoples retirement so as to reduce dependency on the aged pension that every taxpayer will have to bear.
Secondly. The other side of this policy is for older home owners to downsize. When they downsize they will be in the market for the same properties that first home buyers would be except that downsizers would be cashed up from the sale of their home that will consequently push up the price in the first home buyer market. It is unfathomable that Morrison , Frydenberg and Birmingham do not realise the consequences of such a scheme unless the whole intention is to destroy Super. The reality is that rather then being good policy, its not. It is another attempt by Morrison and the L/NP to undermine and destroy Industry Super Funds for ideological reasons.