Early release to address housing issue will increase prices by $50k

19 August 2020
| By Jassmyn |
image
image
expand image

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.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 3 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 1 day ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 5 days ago