POWERED BY MOMENTUM MEDIA
Super for house deposit could increase prices up to 16%
Allowing first home buyers to access their superannuation for a housing deposit could hike the country’s five major capital city median property prices between 8% to 16%, according to Industry Super Australia (ISA).
Sydney would be the city most affected as it would see a 16% hike in price to a median housing price of $960,000 (from $826,000).
ISA said in most areas the price increases and extra property taxes would surpass the amount of super a first home buyer could withdraw. This meant homebuyers would be paying more but at the expense of their super.
Impact on capital city prices of allowing couples to withdraw up to $40,000 from super for a house deposit
|
City |
Current median price1 |
Super price hike % |
Median after super price hike |
Difference $ |
|
|
||||
|
Sydney |
$826,000 |
16% |
$960,000 |
$134,000 |
|
Melbourne |
$640,000 |
9% |
$695,000 |
$55,000 |
|
Brisbane |
$475,000 |
8% |
$510,000 |
$35,000 |
|
Adelaide |
$448,400 |
8% |
$485,000 |
$36,600 |
|
Perth |
$435,000 |
14% |
$495,000 |
$60,000 |
|
Hobart |
$453,900 |
6% |
$480,000 |
$26,100 |
|
Darwin |
$444,500 |
10% |
$490,000 |
$45,500 |
|
Canberra |
$613,800 |
13% |
$690,000 |
$76,200 |
1The median residential property price is sourced from ABS Cat.6416.0 and our estimate covers both established houses and attached dwellings.
Source: ISA
ISA chief executive, Bernie Dean, said: “This just confirms what experts have been saying for ages; that throwing super into the housing market would be like throwing petrol on a bonfire – it will jack up prices, inflate young people’s mortgages and add billions to the aged pension, which taxpayers will have to pay for.
“Politicians who own multiple investment properties and pocket 15% super might think price hikes are a ‘secondary’ consideration. They don’t care about locking young people into hugely inflated mortgages and a bleak future with hardly any savings to fall back on.
“We need sensible solutions – like boosting the supply of affordable housing which will bring prices down and get young people into a home without lumbering workers with higher taxes in the future.”
ISA noted that taxpayers would be the “loser” if super access was allowed as they would be forced to pay billions more into the Age Pension through higher taxes.
ISA noted Minister for Superannuation, Financial Services, and the Digital Economy, Jane Hume, had joined economists and housing experts in warning against raiding super for housing.
Recommended for you
In its pre-election policy document, the FSC highlighted 15 priority reforms, with superannuation featuring prominently, urging both major parties to avoid changing super taxes without a comprehensive tax review.
The Grattan Institute has labelled the Australian super system as “too complicated” and has proposed a three-pronged reform strategy to simplify superannuation in retirement.
Super funds delivered a strong 2024 result, with the median growth fund returning 11.4 per cent, driven by strong international sharemarket performance, new data has shown.
Australian Ethical has seen FUM growth of 27 per cent in the financial year to date.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
2
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.72 3 y p.a(%)
3
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
27.64 3 y p.a(%)
