To: Federal Government
Allow Australians to put their Superannuation into their Mortgage (Regulated)
Please present a bill which will allow any Australian citizen who would like to reduce their mortgage repayments with their Superannuation to do so. Make it easier to move from a Super fund and have an Owner Occupied Self Managed Super Fund (OOSMSF) through a reputable Bank. Let first homebuyers and current mortgage holders use their Super as borrowing capacity towards their home loans (Naturally this must be regulated, and the Super portion would not able to be withdrawn until retirement, but can be moved to different lenders). Allow both income earners in a relationship to contribute to the wealth building of this scheme.
It is proposed that an Owner Occupier Self-Managed Superannuation Fund (OOSMSF) be made available to all Australians. Australians should be able to draw down on their current investment in super to go towards their Mortgage, have employer contributions go towards repayments as well as salary sacrificing options, which will enable their OOSMMSF to own the home quicker.
However, it can also be investigated that if someone owns their home they transfer their Current Super scheme into their home to prevent greater loss during a market downturn or GFC.
The purpose of this change to current Superannuation arrangements is to allow Australians to pay off their mortgages quicker while still having a Superannuation balance preserved in their Mortgage, but giving Australians more disposable income for household expenditure and consumer trade, thus assisting the economy. It will also reduce the risk of losing money out of the current managed fund as a result of a downturn of the market or GFC. This new arrangement would also make it fairer for eligible citizens and allowing them to enjoy the benefits of their Super contributions as politicians are able to do also.
Why is this important?
Potential for Australians to own their home sooner (Although preserved by their OOSMSF)
Homeowners would save 10’s of Thousands if not 100’s of thousands $ in interest payments if lump sum, employer contributions and Salary Sacrifice are all contributed to the mortgage.
Homeowners would save thousands in personal income tax due to Salary sacrificing arrangements.
It opens up the housing market for more regular income Australians not just wealthy business people or those who got into the markets when housing was much more affordable.
People would have more disposable household income that could either be used to pay the home of quicker via the non-preserved amount, continue to build their super nest egg with other super initiatives or contribute this to the economy in consumer spending.
Allow Spouse contributions into the same SMSF to reduce their Mortgage faster.
Reduce rent assistance to retirees who would not have had the opportunity to get into the property market, reducing the burden on the Government via tax payers at retirement age.
When young people get into this scheme early in their life their OOSMSF will own the home sooner and they will also achieve a substantial super investment via other super schemes reducing the burden on the Government via tax payers at retirement age.
More average Australians will have mortgages and repaying them early would be more achievable.
How it will be delivered
Please contact the Minister for Revenue and Financial Services
The Hon Kelly O'Dwyer MP
Via the Ministerial Correspondence form @ http://www.treasury.gov.au/Forms/Ministerial-Correspondence
or mail to
PO Box 6022
House of Representatives
Canberra ACT 2600
(02) 6277 7930
(02) 6273 0434