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The Idea To Allow Young People To Use Their Super For Housing Appears To Be Dead

Hasta la vista... super for housing.

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Finance minister Mathias Cormann appears to have ditched the controversial policy idea that would have allowed young people access to their retirement savings to buy a house.

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.

Using super to buy housing shifts money directly from young savers to old sellers. Complete own goal. 1st year econ-level stuff. #auspol

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.

Mark Di Stefano is a political editor for BuzzFeed News and is based in Sydney.

Contact Mark Di Stefano at mark.distefano@buzzfeed.com.

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