Canavan says flex super rules to help first home buyers
SENATOR Matt Canavan has dismissed former PM Paul Keating's criticism of the idea to allow young people to use superannuation to buy their own home.
Senator Canavan is strongly in favour of it and included the idea in his first speech to the Senate last July.
"Paul Keating says allowing people to invest in their own home ignores the impact of compound interest," he said. "Last time I checked, property was an asset, an asset that earned around 5% a year in capital growth.
"Why make people save for retirement before they can own their own home? We should free up the rules around superannuation so that young people can use their income and their savings to buy their first home."
Mr Canavan said both Singapore and Canada already allowed use of superannuation to purchase a home.
"I am not arguing for direct adoption of either of those systems but they do provide practical case studies we can examine and adapt for Australia."