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.”