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Former RBA governor behind fresh calls to allow first homebuyers to dip into their super

24 November 2020

Former Reserve Bank governor Bernie Fraser is leading a new push to look at letting low-income earners and first homebuyers dip into their super to buy a home.

Mr Fraser is being joined by, among others, Liberal MPs Tim Wilson and John Alexander, and senators Andrew Bragg and Gerard Rennick who want to bring home ownership into the spotlight and allow people to use early super withdrawals for a home loan deposit.

The group says withdrawing super for property is a very good investment and are spruiking the benefits of home ownership that were highlighted in a recent review of the retirement system in Australia.

“In my view, the long term return of owning a house rather than having to be renting one would outweigh the return of even a good performing super fund,” he said.

Mr Fraser is more than qualified to speak on super, having previously been a director of several large industry funds.

Mr Fraser said there would have to be a limit on how much could be withdrawn but wasn’t concerned about fears the move could put too much upward pressure on house prices due to the increased demand.

“It wouldn’t be anything like those kinds of pressures, such as capital gains tax benefits and negative gearing, on house prices which are there now and are very real and are part of the reason why it’s so difficult for people on more modest means to even contemplate the prospect of owning a house these days,” he said.

“I just think, particularly as house prices are going up and rent prices are going up, the opportunity for some modest-income people to have a house would be a very good investment.”

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