Budget Reply reaffirms super use for FHB: Dutton

Following the Labor government’s first federal budget in nine years, delivered on Tuesday (25 October), shadow leader Peter Dutton has released the Opposition's response.

In the shadow budget, handed down on Thursday (27 October), Peter Dutton slammed the Labor Party's package as a “missed opportunity” to help Australians at a time they need it most.

The Opposition Leader noted that it was "almost impossible, for young people to afford their first house — even with hard work, sacrifice and saving.”

In response to the government’s new Housing Accord — between the building sector, councils, states and investors — and the commitment to build 1 million new homes over five years from 2024, he said super could also have been brought into the picture.

Mr Dutton recommitted the Coalition to assisting first home buyers (FHB) by accessing their superannuation through the Super Home Buyer Scheme, with the money returned in future following the sale of the property.

“Currently, a super fund can be used to buy a residential or commercial rental property… To buy shares or even livestock," Mr Dutton said.

“In fact, it can be used to buy almost any asset class except a home to live in.

“Taking money out of super before retirement is a bad investment decision, unless you put the money back in before retirement," he said.

In his speech in Parliament, Mr Dutton gave the examples of a 30-year-old couple withdrawing $50,000 dollars each from super to help buy a home.

"Over a decade, the $100,000 dollars would be worth about $188,000 dollars if it had remained in super.

"Without the $100,000 dollars from super, the first home buyer wouldn’t have been able to afford the house.

"But with the access to super, they have a home to live in," he said.

Mr Dutton continued: "If the house was sold after that decade, the $100,000 would be worth around $214,000.

"And if the $214,000 was reinvested back into super – as we would require – the couple would end up with a balance from that amount in their super when they retire with over $1 million dollars."

"Under a Coalition Government, we will extend the same opportunity to women who separate later in life; women with very few housing options and those who are increasingly left homeless."

The Opposition Leader chided the Albanese Government for wanting "your super to invest in someone else’s home — not your own".

“At the same time, they want super funds to be less transparent with what they do with your money.”

The shadow leader opened his statement outlining that for millions of Australians, “things aren’t easy right now” and that “we’re facing increasing financial pressures: In your mortgage repayments, insurance premiums, visits to the supermarket, filling-up at the petrol station, and especially in your power bills.”

He said while the cost of living is “skyrocketing” and it may seem out of control, it can be “kept in check”.

Labor’s budget was described as “a missed opportunity” and not addressing “our economic challenges”.

It was a budget that “adds to, rather than alleviates, your cost-of-living pressures,” Mr Dutton explained.

Additional life costs many mortgage owners will face

Under the spectre of predicted higher energy costs — and having cited various examples of people and companies and the future costs they face day to day — Mr Dutton warned: “Under Labor’s Budget, electricity prices are set to rise by more than 56 per cent and gas prices by more than 44 per cent.

“Everything is going up, except your wages.

“Cost-of-living, power prices, taxes, interest rates, unemployment, and the deficit are going up, or will be going up under the Government’s predictions.”

However, not all was bad, with the shadow ministry commending several good measures in Tuesday’s (25 October) budget, including the funding to help Australians “recover from devasting floods”.

Slating the new with the old

Mr Dutton also confirmed his party supported initiatives to increase the supply of housing.

“But the Government’s initiative has no detail,” he highlighted, flagging the National Accord.

“The Labor Government has promised one million additional homes in five years costing $10 billion. Does anyone believe that?

“It’s Kevin Rudd-esque in design.

“Remember the pink batts? Remember the school halls?

“They were designed when this Treasurer was the Chief of Staff to the then Treasurer, Wayne Swan.

“Sadly, this program has a familiarity.

“Sadly, this proposal looks like it falls into the same category.”

Following the release of the Albanese government’s first budget on Tuesday evening (25 October), members of the industry tentatively welcomed the package, though some outlined that more could have been done to help borrowers manage the cost of mortgages.

[Related: Economists rate government’s housing accord]