The Master Builders Australia proposal for the early release of super to address housing affordability is “glib” and “underwhelming”, according to the Association of Superannuation Funds of Australia (ASFA).
ASFA said the proposal did nothing to address the supple side constraints at the heart of housing affordability and would instead channel the retirement savings of young Australians into the hands of speculators and property developers.
The association said the proposal would inflate the price of property by $50,000, which would exacerbate the housing affordability issue.
ASFA chief executive, Dr Martin Fahy, said: “The unemployment crisis faced by vulnerable sectors such as construction, hospitality and retail, requires a co-ordinated and comprehensive fiscal response from the Australian Government.
“With interest rates at an all-time low and government borrowings the lowest in the OECD, Australia needs a Marshall Plan-like stimulus to protect Australians from the scourge of long-term structural unemployment.
“The superannuation industry stands ready to work collaboratively with the Government to fund critical nation-building projects needed to bring about a transformative economic recovery for all Australians, including social and affordable housing.”
The $9 billion fund is backing agriculture investor GO.FARM, with its capital already directed towards enhancing two key assets.
Brighter Super is considerably scaling down the investment options it offers members in order to reduce costs.
Amid a challenging market environment, three super fund CIOs have warned against ‘jumping at shadows’.
The professional body is calling for the annual performance test to transition to a two-metric test, so it better aligns with the overarching duty of super fund trustees to act in the best financial interests of their members.
Good work from ASFA here. Master Builders' declining relevance is also shown up here. In Victoria the self interested policy positions are increasingly disjointed and confusing.
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