Dave Sharma (Wentworth, Liberal Party) Share this | Hansard source

I rise in support of the motion moved by my friend the member for Goldstein. Like with most Australian communities, homeownership represents a key milestone in the lives of many of my constituents, and ideally it's the start of their journey towards financial freedom, economic security and an enduring sense of comfort in retirement. I am not anti superannuation, but I am pro homeownership. As the Retirement income review found, housing status is a strong determinant of retirement incomes. People who own their home outright have generally lower housing costs compared with renters as well as a store of wealth that can be drawn on in retirement. People who rent may require incomes similar to working life to maintain living standards in retirement.

The incomes review also found that the home is the most important component of voluntary savings and is an important factor influencing how people feel about retirement. Homeowners, as you would expect, have lower housing costs and an asset that can be drawn on in retirement. The review also found that, if a decline in homeownership among younger people is sustained into retirement, there will be an increasing number of retirees who rent. The system, as we know, currently favours homeowners such as through the exemption of the principal residence from the age pension assets test.

Using superannuation's assets more efficiently and accessing equity in the home can boost retirement incomes without the need for additional contributions. That was one of the main findings of the Retirement income review. Whilst the Retirement income review flagged a range of measures, including the Pensions Loans Scheme, I think there are others that are worth exploring, as my colleague the member for Goldstein has highlighted.

Over the past 40 years, increases in home values and delayed workforce entry have contributed to falling homeownership rates. These factors have particularly effected lower-income and younger households. Overall homeownership rates have declined from around 70 per cent in 1981 to 67 per cent in 2016. Whilst, among people aged 55 and over, rates of homeownership have been consistently high, homeownership has fallen among younger age groups. The median age of people buying their first home increased from 24 in 1981 to 33 in 2016. The independent Grattan Institute has identified that those aged 65 and over spend nearly 30 per cent of their income on housing, compared to homeowning retirees, who spend merely five per cent. Such a significant disparity in cost represents an equally significant disparity in terms of quality of life in retirement.

This government believes in homeownership. We believe that individuals should be empowered with the freedom and the choices to make the best decisions in the interests of themselves and their families. We also believe that everyone should be able to look forward to a safe, happy and secure retirement. This means creating a superannuation system that supports these goals and serves as a contributor, rather than a detractor, to these goals and aspirations. A superannuation system that holds back the property ownership ambitions of all Australians is a superannuation system that is in need of reform. Prior to the introduction of compulsory superannuation, most Australians worked to save and invest in property. It was the financial priority of most households, with neighbourhoods built on the back of this shared local interest. Fast forward three decades, though, and we've seen property ownership rates fall, from 52 per cent in 1995-96 to 36 per cent just a few years ago, for those aged between 25 and 34. Meanwhile, the superannuation system's assets under management have grown from $221 billion to $3.1 trillion over this same period.

With initiatives like the federal government's First Home Super Saver Scheme and First Home Loan Deposit Scheme, interest rates at an all-time low and responsible lending reforms on the horizon, it is a good time to buy a home. But the biggest barrier faced by young Australians who want to buy their first home is saving for a deposit. As Association Superannuation Funds of Australia data shows, Australians between 30 to 34 have an average of $38,000 in superannuation which they could use for a deposit if only they could access it. As I said, I'm not anti super, but I am pro-homeownership. As the early access scheme for superannuation showed, there are many Australians who have come to realise that the money in superannuation is their own money. Australians should have the freedom to choose how they best save for their retirement.

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