Andrew Leigh

JASON CLARE MP
SHADOW MINISTER FOR HOUSING AND HOMELESSNESS
SHADOW MINISTER FOR REGIONAL SERVICES, TERRITORIES AND LOCAL GOVERNMENT 
MEMBER FOR BLAXLAND

STEPHEN JONES MP
SHADOW ASSISTANT TREASURER
SHADOW MINISTER FOR FINANCIAL SERVICES AND SUPERANNUATION
MEMBER FOR WHITLAM

ANDREW LEIGH MP

SHADOW ASSISTANT MINISTER FOR TREASURY

SHADOW ASSISTANT MINISTER FOR CHARITIES

MEMBER FOR FENNER

APRA CONFIRMS GOVT PUMPING UP HOUSE PRICES

Allowing people to raid their superannuation to buy a home would drive up house prices and bank profits, the Australian Prudential Regulation Authority has conceded.

In response to questioning by the Deputy Chair of the House Economics Committee Andrew Leigh today, APRA Chair Wayne Byres concedes that the Liberals’ thought bubble of allowing people to access their super would also decrease affordability for first home buyers who didn’t opt in:

LEIGH: What effect would it have on demand?

BYRES: Well, you have to think it would add to the demand.

LEIGH: And what effect would that have on house prices?

BYRES: All else equal, it is likely to push them up.

This concession comes after the idea, being pushed by rogue Liberal backbenchers, was slammed by the former Prime Minister Malcolm Turnbull, Mathias Cormann, Michael Sukkar and Peter Costello.

Mathias Cormann, “It would increase demand for housing and, all other things being equal, would actually drive up house prices by more. That is, it would reduce housing affordability, including for first home buyers.”

Michael Sukkar, “If all a government does is try to pump further liquidity into the residential housing market, inevitably all you do is push up housing prices.”

Malcolm Turnbull, “It’s not what the superannuation system is designed to achieve. Housing affordability is a big issue in Australia but as we’ve demonstrated over many studies over many years, this is a supply-side problem.”

Peter Costello, “We went through all this back in the mid-90s. We had a look at it. Because we thought superannuation should be used for retirement savings, we decided not to allow superannuation to be used for housing.”

You don’t make housing more affordable by making it more expensive. The only winners from this would be the sellers and the big banks.

Australians deserve better than a government that allows its backbench to freelance on such vital issues.

ENDS

Authorised by Paul Erickson, ALP, Canberra