Peter Costello says saving superannuation for retirement was wisest outcome

Peter Costello says saving superannuation for retirement was wisest outcome
Jonathan ChancellorDecember 7, 2020

The former Treasurer Peter Costello has noted the Howard government looked at opening up superannuation to home buyers in the 1990s, but decided against it.

It was "fair enough" for the Coalition to again have a look it, he said on the ABC's 7.30 program.

"Well, look, this idea has been around for a long time …every generation thinks it invented the wheel."

"But I think they will come to the same conclusion as we did: that if you wanted to top up people's retirement, if you wanted to save the government money ... then you probably won't allow people to draw down on it for housing," he advised.

He said super had two purposes - increasing retirement savings and reducing pension costs - and the government should add give multiple objectives, "none of which it will actually do very well".

Warning against any changes to the superannuation scheme which would allow retirement savings to be used for the purchase of a first home, Peter Costello said "things may have changed, but I think they'll come to the same conclusion as we did".

Jonathan Chancellor

Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.

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