Interview with Politics Now on Sky News

Subjects: Super for Housing

E&OE………

Tom Connell

Joining the panel now, Liberal Senator Andrew Bragg, who's been driving this for quite a while. Thank you for your time. Just want to clarify on this the latest numbers you have. The first year, if you win government, how many people would qualify for this scheme and what modelling have you done on how it would affect house prices?

Senator Bragg

Well, the overall position here is that we will reduce permanent migration, and we want to more finely calibrate the ratio between the amount of people that are coming into the country compared to the amount of houses that are being built. So, if you look at the last year, you've seen 500,000-600,000 people come into the country and only 170,000 houses built. So, we’re making a bad situation much worse. So, we're trying to reduce foreign demand for Australian housing here.

Tom Connell

But on the super policy, the superannuation policy, accessing super, in that first year, how many Australians would be eligible to use that? And what would it do to house prices? What modelling have you done on that?

Senator Bragg

So, in terms of the number of people that will be able to use it, the average super balance for a 38-year-old is about $85,000 to $90,000. So, you would see a large chunk of those people, if they wanted to pull their super out and put it into a home deposit, that would go a long way to getting a deposit in a capital city like Melbourne, Sydney or Brisbane. And in terms of the impact on pricing, the independent economists, like Peter Tulip and Cameron Murray and co, have all made the point that it would be minuscule in a $10 trillion housing market.

Tom Connell

Well, perhaps. I mean, what you say there in terms of how many people, large chunk doesn't sound too scientific to me. You can have figures on how many and then what modelling. You have to do some modelling on house prices, even if you say it won't do much. Because remember, a lot of these people probably are going to be on a similar value of house as well. So, concentrating them on one sort of area.

Senator Bragg

Well, I mean, at the moment, a large group of millennials and Gen Zs are on a trajectory never to own a house. So we think that using people's money to get into the housing market is a very important policy objective, which is why we've prioritised home ownership above other factors. And I'm referring to the modelling that's out there, the modelling that hasn't been commissioned by the super funds that have a vested interest to keep our money in a locked box. And the independent economists say that it would have a very marginal impact on house prices. But it would significantly help people who are battling to get a deposit together in the absence of having the benefit of the bank of Mum and Dad.

Trudy McIntosh

Andrew, can I ask you to clarify something the Shadow Treasurer told the Press Club last week? He said on this policy, Australians deserve the opportunity to use their super for every possible investment that's available. So, if I'm looking at this policy and the Coalition is elected, can I take my super out and put it into Bitcoin if I think that's an investment?

Senator Bragg

Well, at the moment, our policy is calibrated only for housing…

Trudy McIntosh

So, he was wrong for the Press Club last week?

Senator Bragg

Well, the superannuation idea is very paternalistic, and it assumes that Australians cannot look after themselves. I've never agreed with that. The reality is that the key determinant for your success in retirement is not your superannuation balance it is your home ownership status. So, we are prioritising home ownership over superannuation because we think that's the best guarantee of a safe retirement.

Andrew Clennell

Would you like to see, personally, I think I know the answer to this, compulsory super scrapped altogether? You don't believe in Paul Keating's idea?

Senator Bragg

Well, that's not our policy.

Andrew Clennell

But what do you believe?

Senator Bragg

Well, I'm a member of the Shadow Ministry, so I am a supporter of our policy, and our policy is to allow Australians to take $50,000 of their own money from superannuation. And that's currently being looked at by a Senate Inquiry, which has recommended expanding that policy.

Tom Connell

Right. And just to clarify, I wasn't quite sure I got an answer. Could you pull it out and get Bitcoin if you wanted?

Senator Bragg

That's not our policy, no.

Tom Connell

Not your policy, okay. So it has to go into, specifically into a house is the only way to do it, in your first house.

Senator Bragg

Well you can't live in a Bitcoin.

Tom Connell

Well, I don't know.

Trudy McIntosh

But Angus Taylor said it was any possible investment, every possible investment. He didn't specify housing.

Senator Bragg

Well, we have a compulsory superannuation system at the moment. It hasn't been very successful. Most people are not being able to live in retirement off the pension. Most Australians will always be on the pension, even as we get into the back end of the century. And our policy at the moment is to open up super for housing. That's the current confines of the policy.

Tom Connell

All right, Andrew Bragg, we'll leave it there.

[Ends]