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Accessing Super

Should home-buyers be allowed to dip into super?

The Prime Minister is reportedly considering allowing first home-buyers to dip into their super.

Finance Guru Scott Haywood tells Melbourne Radio's Tom Elliott it's not a good idea.

"This is an absolute disaster," says Scott.

"If you increase demand without increasing supply, prices will go up."

The government has at one time or another considered first-home buyers to dip into their savings.

It was floated by then Treasurer Joe Hockey, who said there needs a debate on making super "more flexible" over the coming years.

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David Whitely, the chief executive of Industry Super Australia is against the idea.

"While it is a superficially attractive idea particularly for younger Australians, it's something which could have significant ramifications for individuals and for the economy more broadly," he said.

Mr Whitely said broadly speaking the proposal could further inflate house prices, take away from retirement savings and mean people lose the benefits of compound interest for ten years of savings.

"We know that there is somewhere in the order of one trillion dollars in private savings that we couldn't have had without compulsory super," he said.

"We are very concerned with this proposal that has been put to the government."

Super has been one of the greatest economic achievements post-war for Australia.

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