Scott Morrison's plan to allow first home buyers to dip into their superannuation for a housing deposit will push Illawarra house prices even higher, according to Labor candidate for Whitlam Stephen Jones.
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"Prices here in the Illawarra have already gone up 26 per cent over the last year alone," Mr Jones said on Monday.
"If we add this money into an already constrained market, prices will go through the roof."
At the Coalition's official campaign launch in Brisbane on Sunday, Mr Morrison promised to address growing barriers to home ownership for first home buyers by letting them use a portion of their superannuation savings to purchase a property.
The promise, countering Labor's recently announced plan to share equity with people buying a home, would apply to both new and existing homes.
"Whatever amount is invested will be returned to your super when you sell the home including the share of the capital gain from the sale of that home," Mr Morrison said.
The maximum amount that would be invested under the plan would be the lower of $50,000 for each individual or 40 per cent of their total superannuation balance.
"Superannuation is there to help Australians in their retirement," the Prime Minister said.
"The evidence shows that the best thing we can do to help Australians achieve financial security in their retirement is to help them own their own home."
But Mr Jones said Prime Minister Scott Morrison had "ditched the last vestige of economic credibility" by announcing the housing plan, which he said had been rejected by multiple past treasurers including Peter Costello, Joe Hockey and Mathias Cormann.
"They have no ideas, and in a desperate plea to try and win some votes in the six days before an election he announced a plan which has been rejected by every single Liberal prime minister and every Labor prime minister in 30 years," he said.
"Malcolm Turnbull called it the dumbest idea ever, and the simple reason why it's a dumb idea is it's going to blow the housing market up."
"We're not 24 hours from the announcement being made and the minister responsible Jane Hume has already had to concede that this policy is going to see house prices go even further through the roof."
"We should not go to an election with this false promise that by raiding super we are going to make housing more affordable."
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