Experts have slammed One Nation’s suggestion that Australians paying rent or a mortgage be allowed to divert a portion of their compulsory superannuation contributions into their take-home pay for up to three years to cover daily costs. Housing experts and economists warn this policy could worsen inflation, making housing even less affordable. The proposal comes after earlier pre-election plans to allow first home buyers to access super for deposits, which were previously rejected by housing advocacy groups.
Under the latest suggestion, Australians would be able to divert super contributions into their pay for up to three years. One Nation leader Senator Pauline Hanson argues this would provide relief for struggling households, stating it would help pay rent, mortgages, groceries, power bills, and family expenses. However, leading housing experts criticize the scheme, calling it a 'Band-Aid over a rigged housing system' that would leave everyday workers financially worse off.
Everybody’s Home spokesperson Maiy Azize claims the policy is a sign that the housing crisis isn’t being addressed properly, emphasizing that super should be for retirement, not current expenses. She warns that injecting extra cash into the market would fuel inflation, drive up rents, and make homeownership even harder to achieve. Independent economic analysis by PRD chief economist Dr Asti Mardiasmo highlights critical flaws in the proposal, including lack of minimum super balance requirements and potential financial risks.
She notes that the policy could disrupt retirement savings, encourage overcapitalization, and reduce long-term returns due to inconsistent reinvestments. Dr Mardiasmo also points out that the scheme doesn’t address the root cause of the housing crisis—demand and supply issues—and could lead to recurring administrative fees. Meanwhile, Ms Azize advocates for structural solutions, including rent controls, increased public housing investment, and long-term tax reforms to make homes more affordable.
The policy’s inflationary and financial impacts remain unmodelled, raising concerns about its long-term consequences.
Source: realestate.com.au
