The Liberal party have promised to manage Australia’s housing issues by lowering “unsustainable” levels of migration and offering first-home buyers new opportunities.
Shadow Minister for Housing Michael Sukkar told The Briefing podcast that the Coalition plans to reduce permanent migration by 25 per cent and almost halve net overseas migration to tackle the growing demand for housing.
He says reducing migration would be “the absolute best thing that can happen for the rental market.”
Listen to Michael Sukkar pitch the Coalition’s case on how they will fix the housing crisis:
“When you’re building fewer homes you just can’t bring in record levels of migration because every one of those people needs a roof over their heads themselves.”
Alongside reducing migration, the Liberals propose to make housing more accessible by allowing first-home buyers to draw from their superannuation.
Under the Liberal’s housing policy, first-home buyers will be able to use up to $50,000 of their superannuation to pay for a home.
That money, alongside proportionate profit from the growth of the home’s value, must be paid back into their super when people sell their home.
Sukkar said this “tips the scales in favour of first-home buyers” as it is not available for investors or people buying their second home.
In addressing concerns that the housing market may fall rather than continue to grow, Sukkar pointed out the reliance of superfunds on the housing market, saying that if one “tanks” so would the other.
Sukkar hopes the plan will help reduce fears young Australians have around the inaccessibility of the housing market.
“You’ll be better off because you’ll own a home. But we’re also adding the extra protection of recontributing into your super so your supers still going to be in a really healthy state”.
By Zach Goutzoulas, a Master of Journalism student at the University of Melbourne.