Super fund access to buy homes sparks affordability debate

Andrew Bragg, the shadow housing and homelessness minister, is advocating for a shift in Australia’s retirement system to emphasize outright home ownership. During a media briefing at the Australian Computer Society in Sydney on Tuesday, Bragg suggested that workers should be allowed to access their superannuation savings to purchase a first home. He cited the latest Intergenerational Report, which highlights housing as a key factor in retirement security, alongside private savings and the Age Pension.

According to Bragg, “The IGR says that the housing status is a strong predictor of the success of your retirement.” He noted that while renting can be a viable option, the current trend is concerning, with the proportion of retirees renting increasing from 6 per cent to 12 per cent over the past two decades. Projections indicate that this number could reach 1 million within the next decade. Bragg emphasized that he wants to prevent people from being forced into renting during retirement, stating “I want to stop those people from being retired renters, unless they choose to be that way.”

Bragg argued that housing policy should be integrated with superannuation and social security, rather than operating as separate entities. He pointed to examples in Singapore, Canada, and New Zealand, where mandatory savings systems allow individuals to use their savings for housing. The Coalition’s policy, which was proposed in the 2022 and 2025 elections, would have enabled Australians to withdraw up to $50,000 from their super to buy a first home.

Opposition warns of price spikes

The Super Members Council (SMC) has rejected Bragg’s proposal, warning that early access to super could lead to increased house prices and rents. The council cited New Zealand as an example, where house prices grew at twice the rate of Australia’s after a similar scheme was introduced. During the same period, home ownership among New Zealanders in their 30s decreased by 7 percentage points. Research commissioned by the SMC in 2025 found that allowing first home buyers to withdraw super for a deposit could result in a 10.3 per cent increase in Australian house prices.

SMC chief executive Misha Schubert stated, “The key to improve housing affordability is to boost housing supply – not to tell people to withdraw their super early which would just push up house prices.” She argued that such policies would exacerbate cost of living pressures. Bragg countered that the Coalition’s proposed policy differs from the government’s 5 per cent deposit scheme, which could drive up prices. He suggested that a controlled withdrawal from super might not have the same effect.

Bragg also questioned the separation of super and housing policy, highlighting data that shows 32 per cent of super lump sums were used to repay mortgages in the previous year. He noted that the current system provides tax concessions for superannuation savings, which are then used to pay off mortgages at the end of the mandatory savings period. Bragg argued that this approach is rigid and technocratic, and that it should be reexamined.

Pension spending projections

While Bragg positioned his proposal as an addition to compulsory super, the SMC warned that weakening preservation rules could undermine projected reductions in Age Pension expenditure. The Intergenerational Report predicts that Age Pension spending will decrease from 2.3 per cent of gross domestic product to 1.8 per cent by 2066. The report also notes that the proportion of people above pension age relying on government income support is expected to decline from 66 per cent to 52 per cent.

Public opinion on retirement savings

Research cited by the council found that 80 per cent of Australians believe super is key to their retirement living standards. Additionally, 88 per cent of older Australians are concerned about policies that expand early access to super. More than 70 per cent of seniors surveyed by National Seniors Australia stated that they would not have accumulated enough retirement savings without compulsory super. Bragg argued that Australia needs to reconsider its system, which can leave workers with substantial super balances but no home of their own, potentially forcing them to rent from institutional investors during retirement.

Bragg emphasized that he wants to add to the debate on retirement policy, not subtract from it. He believes that home ownership should be a clear objective and that the system should be reexamined in light of changing circumstances. Bragg noted that the world has changed since superannuation was introduced in 1992, and that it is time to reassess the system to ensure that it is working effectively for all Australians.