Housing and superannuation are not a prudent mix


Housing and superannuation are not a prudent mix
  1. Housing and superannuation are not a prudent mix
    theage.com.au
    The Turnbull Government would be well advised to heed Paul Keating's advice that allowing people to draw against their superannuation to boost their housing deposits is a terrible idea. But that's just not going to…
    Health
  • SHARE
  • Share on Facebook
  • Share on Twitter
  • Link
<p>

 

While it is unlikely Scott Morrison would ever take policy advice from Paul Keating, he could be well advised to heed what the former Hawke Government treasurer, and prime minister, said about compulsory superannuation and housing on the weekend.

That is that it is a bad idea or, as Mr Keating put it, "policy bankruptcy".

Keating  oversaw the protracted gestation and birth in the 1980s and 1990sof Australia's Superannuation Guarantee Scheme, so speaks with some authority on the subject. 

Thanks to the decision by public sector trade unions to forego a three per cent wage increase for their members under the 1983 Prices and Incomes Accord if the money was paid into superannuation accounts, Australians now have more than $2 trillion in retirement savings.

The scheme, which is the envy of many countries around the world, ranks with Medicare as one of the most socially significant policy achievements of the post-war era.

Allowing first home buyers to draw down against their superannuation for home deposits is contrary to what the scheme was designed to do - namely provide a post-work income, thereby easing the strain on the Federal Government to support those retirees unable to support themselves.

Advertisement

Keating argues, not without justification, there are elements within the Turnbull Government who have both Medicare and compulsory superannuation in their sights.

The Coalition, which came close to losing the 2016 election over fears it wanted to wind back Medicare, has already watered down the Superannuation Guarantee Scheme once before.

The contribution rate, which steadily climbed from three per cent to 9.5 per cent between 1992 and July 2014 for most workers, was supposed to increase to 10 per cent by July 1, 2018. That was knocked on the head in the Abbot-Hockey budget of 2014.

The decision, to halt future increases until July …

  1. Man dies after being ejected from car following Bathurst police chase

    Theage.com.au - Health
    03.29 / 12:09 www.theage.com.au
    A man has died and another man is seriously injured in hospital after their car crashed following a police pursuit in the NSW central…
  2. Concussion in sport: Brumbies flanker Chris Alcock says players must be honest about head injuries

    Theage.com.au - Health
    03.29 / 10:13 www.theage.com.au
    Brumbies flanker Chris Alcock says players have to be honest about concussion…
  3. Croc shot in WA after killing farm animals

    Theage.com.au - Health
    03.29 / 09:46 www.theage.com.au
    ​A saltwater crocodile that killed a horse and savaged a cow, and is suspected of killing a dog, has been shot dead in Western Australia's Kimberley r…
  4. Cyclone Debbie: North Queensland wakes to heartbreak and huge clean-up

    Theage.com.au - Health
    03.29 / 09:26 www.theage.com.au
    Daylight brought heartbreak for many north Queenslanders who woke to realise the full extent of the destruction wreaked by Cyclone…
  5. Backflip over controversial school zone change

    Theage.com.au - Health
    03.29 / 09:11 www.theage.com.au
    The Andrews government has backflipped on its controversial changes to Melbourne Girls College's coveted…
  6. It's past time for the AFL to stand tall and show it's support for same-sex marriage

    Theage.com.au - Health
    03.29 / 09:07 www.theage.com.au
    Speaking as an Australian, there was sadness – heartbreak really – to watch AFLW best and fairest winner Erin Phillips pay tribute to her partner in the knowledge that the couple have returned to a country that still bans them from getting mar…
  7. Twilight grand final would not be a dash for cash, says AFL boss Gillon McLachlan

    Theage.com.au - Health
    03.29 / 09:00 www.theage.com.au
    The AFL will not attempt to make more money from its $2.5 billion broadcast rights agreement regardless of whether it moves to a twilight grand final in…
  8. Chinese police want overseas help to return gambling fugitives

    Theage.com.au - Health
    03.29 / 08:51 www.theage.com.au
    The head of China's powerful police ministry has called for more help from overseas law enforcement agencies in China's crackdown on cross-border…
  9. Today's teens are struggling to fit enough sleep into their busy lives

    Theage.com.au - Health
    03.29 / 08:45 www.theage.com.au
    Today, school is only part of a hectic teen's day - for many 14-year-old girls the day can reach far into the…
  10. Liberals and Greens call on government to explain Dickson land-swap with construction union

    Theage.com.au - Health
    03.29 / 08:45 www.theage.com.au
    Greens call for more information on plans for section 72 on Antill Street behind the Dickson…
  11. Stewards to talk concussion as Craig Williams sweats on The Championships

    Theage.com.au - Health
    03.29 / 08:08 www.theage.com.au
    A mid-year national stewards conference will discuss whether concussion protocols for jockeys will be tightened and made uniform across different states after it emerged NSW and Victoria had different requirements for when a rider could return to the saddle after a…
  12. Ange Postecoglou wants belief in Socceroos

    Theage.com.au - Health
    03.29 / 08:08 www.theage.com.au
    Ange Postecoglou has ended a trying but ultimately triumphant week by challenging Socceroos fans to match his ambitions for the World…
  13. Owners of dog killed in Yerrabi Ponds attack 'disappointed' about government inaction on dangerous dogs

    Theage.com.au - Health
    03.29 / 08:08 www.theage.com.au
    Peter and Maree Toscan walked away from the ACT Legislative Assembly on Wednesday disappointed that justice for their beloved Pomeranian Buzz, killed in a savage dog attack, would not be…
  14. Student in lecturer's rape case was worried about being expelled

    Theage.com.au - Health
    03.29 / 08:03 www.theage.com.au
    A student who says she was raped one evening by a University of Canberra lecturer was worried about being expelled, a court has…
  15. Cyclists pedal 5500km across Australia for inaugural Indian Pacific Wheel Race

    Theage.com.au - Health
    03.29 / 08:03 www.theage.com.au
    Canberra cyclist Seb and Beth Dunne have ridden in the inaugural 5500km Indian Pacific Wheel…
  16. The National: Sydney's new art festival transports viewers between worlds

    Theage.com.au - Health
    03.29 / 07:35 www.theage.com.au
    If it looks like it doesn't belong, that is a good thing, says artist Alex Gawronski on the eve of The National: New Australian Art 2017, a ground-breaking three-way collaboration between the Museum Contemporary of Art, the Art Gallery of NSW and…
  17. Woman who hit Ballarat cyclist was on way to get money for drugs, court hears

    Theage.com.au - Health
    03.29 / 07:35 www.theage.com.au
    The woman who hit Ballarat cyclist Christian Ashby and left him lying bloody in the middle of the road was on her way to get money for drugs, a court has h…
  18. ZipMoney takes step towards killing cash and cards

    Theage.com.au - Health
    03.29 / 07:30 www.theage.com.au
    The world is fast moving towards a cashless economy as the Reserve Bank has reveals ATM withdrawals have hit a 15-year…
  19. Turnbull government warns Fair Work Commission against 'excessive' minimum wage rise

    Theage.com.au - Health
    03.29 / 07:30 www.theage.com.au
    Government says increasing the minimum wage is "not an efficient way to address relative living standards or the needs of the…
  20. Hazelwood shutdown: Last shift signals a lifetime of work over

    Theage.com.au - Health
    03.29 / 07:25 www.theage.com.au
    His last shift at Hazelwood finished at 7am on Tuesday, the last of thousands of night and day shifts at the plant since he started there in…