Budget 2017: Super diverted to savings to tackle housing crisis

First home buyers would reportedly be able to divert superannuation contributions to a special savings account under a new proposal to improving housing affordability.

Treasurer Scott Morrison will deliver a speech in Melbourne on Monday that will outline the Turnbull government’s approach to one of the biggest issues in Australia – housing affordability.

Among the proposals, retirees would be given tax breaks to allow them to afford to downsize their family homes, but any changes to negative gearing will be ruled out, The Australian reports.

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He’ll also outline ways to make renting a home more affordable.

The new proposal would reportedly allow first home buyers to use supperannuation contributions. Source: Getty Images

Mr Morrison will deliver the speech to the Australian Housing and Urban Institute in Melbourne – just one month from handing down the federal budget.

The Australian says the entire budget package has not yet been settled, nor signed off by the government’s expenditure review committee or cabinet.

Under the first home-buyers’ superannuation model, superannuation contributions could be diverted into a home savings account that would be matched dollar-for-dollar by contributions from personal savings.

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The amounts available and the time period over which it could be accessed would be capped.

Mr Morrison is expected to warn against a quick fix to the housing affordability problem.

“We don’t claim instantly affordable housing. Anyone making such claims would soon be found out and rightly punished for it,” the Australian quotes.

“There are no single or easy solutions and the payback is achieved in some cases over a generation, not an electoral or budget cycle.”