POWERED BY MOMENTUM MEDIA
Early release to address housing issue will increase prices by $50k
The Master Builders Australia proposal for the early release of super to address housing affordability is “glib” and “underwhelming”, according to the Association of Superannuation Funds of Australia (ASFA).
ASFA said the proposal did nothing to address the supple side constraints at the heart of housing affordability and would instead channel the retirement savings of young Australians into the hands of speculators and property developers.
The association said the proposal would inflate the price of property by $50,000, which would exacerbate the housing affordability issue.
ASFA chief executive, Dr Martin Fahy, said: “The unemployment crisis faced by vulnerable sectors such as construction, hospitality and retail, requires a co-ordinated and comprehensive fiscal response from the Australian Government.
“With interest rates at an all-time low and government borrowings the lowest in the OECD, Australia needs a Marshall Plan-like stimulus to protect Australians from the scourge of long-term structural unemployment.
“The superannuation industry stands ready to work collaboratively with the Government to fund critical nation-building projects needed to bring about a transformative economic recovery for all Australians, including social and affordable housing.”
Recommended for you
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.
Specific valuation decisions made by the $88 billion fund at the beginning of the pandemic were “not adequate for the deteriorating market conditions”, according to the prudential regulator.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
Good work from ASFA here. Master Builders' declining relevance is also shown up here. In Victoria the self interested policy positions are increasingly disjointed and confusing.