Cbus rejects using super for housing
Industry superannuation fund, Cbus has joined the super industry and the Federal Opposition in opposing the idea of first home buyers dipping into their super to fund their house deposit.
The super fund for the construction and building industry labelled it a “short-sighted idea” that would diminish the retirement saving levels of young Australians and put pressure on the Age Pension.
Cbus chief executive, David Atkin expressed concern his fund members’ retirement savings would reduce given the super fund had a young demographic and fairly modest average account balances.
“This policy won’t make it easier for young people to buy a home instead it will drive up the cost of housing and do nothing to address the issue of increasing supply,” Atkin said.
The fund’s average member was 38 years old with an average account balance of $46,160.
Atkin suggested the most effective solution to address housing affordability was to invest and build social and affordable housing.
“One of the biggest problems with housing affordability in Australia is supply – we need to build more houses,” Atkin said.
“Cbus stands ready to invest in this critical infrastructure but the Federal Government needs to get the policy settings right to make those investments sustainable.”
Atkin added there was a “natural symmetry” in the fund investing in infrastructure given their member base is from the construction industry.
AUTHOR
Malavika Santhebennur
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