Statement on Senator Bragg’s misleading claims

Senator Andrew Bragg has today issued misleading claims about the role profit-to-member super funds play in solving Australia’s housing affordability crisis.

Senator Bragg’s imputation that profit-to-member funds are buying up flats, apartments, townhouses, and freestanding homes which they then lease out to Australians is incorrect.

Profit-to-member super funds invest in new, large-scale property developments including for social and affordable housing, and for build-to-rent-own.

The insinuation by Senator Bragg that profit-to-member funds are turning up at Saturday auctions to outbid first home buyers for the family home is fanciful.

Serious issues deserve genuine policy debate based on facts.

By investing in new large-scale property, profit-to-member super funds are helping to solve the housing supply crisis, building more homes for Australians, and generating returns for their retirement.

The evidence from countless credible economists tells us is that policies that let people drain their super for house deposits will only push home ownership further out of reach, drive up house prices and make Australians poorer in retirement.

Respected independent economist Professor Chris Leishman modelled what would happen to house prices in Australia if first home buyers withdrew super for deposits. He found it would push up house prices by up to 10%.

New Zealand’s lived experience of allowing first home buyers to withdraw super for house deposits is a cautionary tale for Australia – house prices took off, and home ownership rates fell by 7% for Kiwis in their 30s.

As an advocate for 11 million Australians, it’s our duty to speak up on any policy proposal that harms the best financial interests of those millions of everyday Australians. We have one interest – their interests.

The evidence is clear. Withdrawing super for house deposits would mean the same people buying houses but paying more for them – and leave Australians poorer in retirement.