It's time we accepted superannuation is not an end in itself but a component of good retirement policy, of which home ownership has to be the cornerstone.
The greatest risk in old age is not that your superannuation balance isn’t high enough, but that you don’t own your own home
Housing affordability continued to decline in the December quarter last year. This is mainly due to a strong increase in property prices in most cities, although it was only moderate in Australia's largest market, Sydney.
Detailed analysis of the ALP’s shared equity home buyer scheme shows that it is poorly designed, expensive and discriminatory, makes no difference to housing affordability and the cost has already almost doubled.
The latest Australian Institute for Progress Housing Affordability Index shows housing affordability improved slightly in the September Quarter, 2021. This was as a result of price falls in Melbourne, while they stayed almost stationary in Sydney.
House prices are likely at a peak, with or without interest rate rises, as they nudge levels of unaffordability last seen just before the Global Financial Crisis.
Other state governments should not copy this misguided tax, which will stymie development and push up house prices.
The state government can find $200 million for the rescue a 90% foreign-owned airline like Virgin, but is happy to throw Queensland investors under a bus.
In the last federal election Labor lost in large part because of their proposed taxes on negative gearing and dividends. This proposal is even more unjust.
The best thing that can be said about it is that it is a genuine solution, unlike the ALP’s negative gearing and capital gains tax proposals.