PWC: Joe Hockey's idea to change super rules could cost the budget $31 billion

Getty/ Scott Olson

You can forgive the Treasurer for being a little bit distracted this week given his defamation case against Fairfax.

But, even allowing for that, his idea to allow younger Australians access to their superannuation to get a deposit for a house seemed a misguided thought bubble and a thoroughly bad idea.

Research from PWC in the AFR this morning confirms how bad an idea this could be for a budget in desperate need of revenue. PWC says that by mid-century the Treasurer’s prospective changes to these super rules will cost the budget $31 billion in revenue.

That’s on the basis of an annual cost of between $500 million and $1.1 billion per year.

PWC partner Paul Abbey told the AFR that he’d assumed the scheme would be limited to those under 35 years of age and a withdrawal of $25,000 to form the deposit of a first home.

“It’s obviously a relatively significant number and in policy terms, is not a small number to take out of the budget annually,” Abbey said.

You can read the full AFR story here.

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