The policy was raised as a possible solution to Australia’s housing affordability crisis, which would have seen first home buyers able to access their superannuation in order to scrape together a deposit.
The idea was slammed by the property industry, economists, several government backbenchers and the opposition, with all saying it would only drive up prices while also robbing young people of their savings later in life.
But the proposal was supported by the former prime minister Tony Abbott, several members of the Coalition backbench, key independent Nick Xenophon and One Nation leader Pauline Hanson.
On Friday finance minister Mathias Cormann, who is part of the government’s budget “razor gang”, appeared to kill off the idea for good.
“That’s not something we think would address the problem,” Cormann told Sky News.
It comes a week after prime minister Malcolm Turnbull, who once called super for housing a “thoroughly bad idea”, was asked about it.
“The purpose for superannuation is to provide for retirement, that’s the objective,” Turnbull said.
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