1300 Home Loan’s managing director, John Kolenda, is urging the government to radically overhaul its superannuation regulations to suit first home buyers.
He said a younger generation were being forced to pay for a retirement when they could “secure a home” with the money instead.
“It is ridiculous to make someone who is just starting out in life save for their retirement before they have even secured a home, especially when you consider that owning your own home is one of the greatest protections against poverty in old age anyway,” he said.
Kolenda drew comparisons with the current Singaporean system, which allows citizens to use superannuation as equity to secure a deposit.
He said Australia should follow suit.
“At the moment we are making it harder than it needs to be for first home buyers to get a roof over their heads because we are forcing them to save 9% of their income for super before they can even start saving money for a home deposit.”