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Economically reckless push to raid super sets a trap for young Australians

Super Members Council 4 mins read

Telling young Australians to raid super for a house deposit would just unleash a massive house price hike – adding fuel to the fire on house prices - and wipe out their super, disastrously making future generations of young Australians wait even longer to own a home.

New analysis shows the median super balance of renters in their 30s is just $40,000 - and $70,000 for a couple. If a couple only used their super to buy a home, it is not until their late-40s that the typical renter has a higher super balance than the average $110,000 deposit of a first home buyer.

Reports overnight suggest some Coalition MPs are pushing to radically expand the scope of their super for a house policy proposal – already debunked by credible economists - to make it uncapped.

“That would be economically reckless – and sets a trap that would make it even harder for future generations of young Australians to realise the great Australian dream of owning a home,” Super Members Council CEO Misha Schubert said.

“Politicians would be shirking their responsibility of fixing the housing crisis, instead telling young people they can either have a house or save for retirement – but not both.

“And what’s the upshot for young Australians? They’d be forced to pay more for a house, with a bigger mortgage, have less super at retirement, and pay more in taxes to fund a bloated age pension.”

“We urge a sensible rethink on any policy ideas that would undermine super.”  

The creation of super is a remarkable Australian achievement that delivers a dignified retirement for millions of Australians – and it is rightly the envy of the world. Anytime politicians float using super for something else, it undermines its purpose to deliver strong returns for all Australians.

The new analysis of ABS data refutes the policy claim that it would help more young Australians enter the housing market, with few younger renters having enough super to help build a deposit (Table 1).

Super Members Council CEO Misha Schubert said wealthier and older renters would just end up using their super and other assets to pay higher prices to buy the same house.

The current capped policy proposal would unleash a massive price hike that would push up prices by 9% or $75,000 for median house in Australia’s major capital cities. An uncapped scheme would set off an even bigger property price hike and cost future taxpayers billions in higher pension costs.

“We all desperately want more Australians to own their own home, but this idea won’t achieve that – it would just make that goal even harder for first home buyers by making house prices more expensive.”

“For many millennials and gen-Z, that policy idea would turn the dream of home ownership into a nightmare and force them to rent for longer.” 

Almost 75 per cent of first home buyers are under-40 and most typical renters buy a first house as a couple. It is only when a typical couple reaches their late-40s that they have more super than the $110,000 average first home deposit.

And only two in ten renters in their 30s has more super than the average first home deposit.  

Media contact: James Dowling 0429 437 851,


Table 1: Median super balances of renter income units with super by wealth quintile


Quintile 1 median super balance

Quintile 2 median super balance

Quintile 3 median super balance

Quintile 4 median super balance

Quintile 5 median super balance

All Quintiles
































































Notes:  Income units are as defined by the ABS and are a mix of single and couple renters.  In the case of couple income units, age is the age of the head of the income unit.  2019-20 super balances have been uprated to 2023-24 values using wage indexation.  Quintiles are based on equivalised financial assets.

Source:   ABS Survey of Income and Housing, 2019-20.

Table 2: Property price hike from proposal that allows FHBs to use up to $50,000 from super

Capital city

Median house price*

Supercharged price hike

Median after price hike



























Weighted five city average





Notes: *CoreLogic Hedonic Home Value Index as at 31 December 2023. Prices rounded to the nearest hundred. Property prices encompass both houses and units. First home buyers typically enter the housing market at more affordable price points. However, increased demand from first home buyers will flow through to median property prices as represented in the table.

Source:  SMC analysis.


About us:

We are a strong voice advocating for more than 11 million Australians who have over $1.5 trillion in retirement savings managed by profit-to-member superannuation funds. Our purpose is to protect and advance their interests throughout their lives, advocating on their behalf to ensure superannuation policy is stable, effective, and equitable. We produce rigorous research and analysis and work with Parliamentarians and policy makers across the full breadth of Parliament.

Contact details:

James Dowling: 0429 437 851,


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