Report – Home truths: the KiwiSaver experience

Australia is in the grip of a housing crisis. Rising median house prices over several decades have led to falling home ownership rates, particularly among younger generations of Australians.

Policymakers have sought to address this issue with policy responses in two broad categories: those that seek to increase the supply of housing, and those that seek to increase the buying power of first home buyers, usually referred to as ‘demand-side’ policies.

The Liberal and National Parties (the Coalition) have proposed a ‘Super Home Buyer Scheme’ under which people would be allowed to withdraw up to 40% of their superannuation savings, up to a maximum of $50,000, towards a deposit for their first home. This proposal is a demand-side measure.

This briefing note is an evidence-based analysis of the super for housing proposal as an important contribution to public policy debate. It includes expert analysis of a real-world example of such a policy in action – clearly and factually setting out its effects on house prices, retirement savings, pension outlays and investment returns for super fund members.