00:00I was reading about the median price of the house in 2001 in Sydney, $350,000, now just shy of
00:06$1.8 million. It's not a bad asset.
00:08Pauline Hanson wants around 7 million Australians to be able to raid their superannuation early to cover rent or mortgage
00:17payments.
00:18But economists say the plan would backfire badly.
00:21The One Nation proposal would let workers redirect a quarter of their super contributions toward housing costs for up to
00:29three years.
00:31But economists warn pumping extra cash into an already stretched housing market would drive up both house prices and inflation.
00:40Here's the thing. You do that, prices will go up even further because you've got more demand in the economy.
00:45And then what does the Reserve Bank do? It puts interest rates up to counterbalance that.
00:49So this feels like a good idea. People are still probably nodding along going, well, at least give me the
00:53money.
00:54The reality is in the medium term, probably means higher inflation, probably means higher interest rates.
00:59And then as you say, long term, the issue becomes the superannuation balances in retirement.
01:03Modelling shows a 25-year-old using the scheme could retire at least $25,000 worse off.
01:11Quite obviously, the first thing people must understand is superannuation is not a national asset.
01:17It's private individuals' assets.
01:19I get very concerned when I hear a government talking about nationalising things because that would sound an alarm bell
01:27that they somehow now believe that to fix their financial mismanagement, they're going to use private people's money.
01:34Now, you could say that, oh, well, that is startling.
01:36Not really. We're already on the trajectory of this.
01:39The first person to start dipping their paws into superannuation was Treasurer Jim Chalmers.
01:46We saw it with the change of the taxation arrangements for balances over $3 million.
01:52It obviously went up by 15%.
01:54And now for balances over $10 million, we're talking about 45%.
01:59And this is obviously, that is the biggest intrusion that we've had into superannuation.
02:05And what you see here, I would suggest that one of the best assets that anybody could ever have is
02:10a house.
02:11We look at the medium price, and because I'm bored and I'm on a plane, I was reading about the
02:14medium price of a house in 2001 in Sydney, $350,000.
02:19Now just shy of $1.8 million.
02:21It's not a bad asset.
02:22It's not a bad asset.
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