Paul Keating says the idea of using superannuation to tackle housing affordability is ‘scandalous’

Former prime minister Paul Keating. Photo: Mick Tsikas-Pool/ Getty Images.

Former prime minister Paul Keating says allowing first-time home buyers to dip into their superannuation to help pay for a deposit will cause more problems than it solves.

Keating, PM from 1991 to 1996 and considered the architect of Australia’s $2.2 trillion superannuation system, has told Fairfax Media doing so would only drive up prices, and kill off retirement savings for the under 40s.

Recently Malcolm Turnbull refused to rule out such a plan to tackle Australia’s housing affordability problem.

“As an economic idea, this is scandalous,” Keating told Fairfax Media.

“When a Labor government comes along and, in a co-operative way, encourages the workforce to save for their retirement, you would think any true conservative party would be eternally grateful.

“Instead the Liberal Party, limited by its ideological snakiness, continues biting at superannuation, as it does, periodically, Medicare.

“Only the most reckless and wilful government would abort the policy settings to put the system at risk.”

The government is expected to make the housing affordability crisis a focus of the upcoming budget, with Turnbull also citing boosting supply as a critical issue to tackling housing affordability.

The SMH has more.