Australia's leading builder, ABN Group Managing Director Dale Alcock, has today applauded Treasurer Scott Morrison for considering changes that would allow first homeowners to use their superannuation to break into the housing market.
Mr Alcock has been a strong supporter of "changing the rules" to allow first home buyers to use money from their superannuation savings for a home deposit.
The plan is now being considered by the Turnbull government as part of a wider housing affordability strategy, according to media reports.
"Rules need to be changed to help more first home buyers to save for a house deposit and it needs intervention from the Federal Government," Mr Alcock says.
Mr Alcock said that he looked forward to the changes being fully explored as a solution for Australia’s struggling first home buyers.
He said that the Federal Government should consider options that would allow young people to access their superannuation, in a similar way to what the Canadian Government has implemented.
Under the Canadian scheme, first homebuyers are able to access up to $25,000 from their superannuation and has the requisite safe guard in that the money must be paid back over 15 years.
“The building industry should be calling on the Federal Government to move quickly to allow the speedy passage of the changes needed,” Mr Alcock says.
“Given that a vast amount of people’s income goes into superannuation, this suggestion makes absolute sense
“For young people, their superannuation is quite intangible. But by allowing this change, all of a sudden it has great relevance and it allows them to use their superannuation ”savings” to enter the housing market.
“In many ways, investing in bricks and mortar is simply a different kind of superannuation," Mr Alcock says.