CANBERRA, AAP – Australians should be allowed to use their superannuation balance as collateral for a home loan, a parliamentary committee recommends.

Home ownership is still part of the Australian dream but barriers like supply issues and increasing costs are making it difficult to become reality.

Allowing people to use their superannuation as security for a home loan – without using the funds themselves – would remove one of the biggest barriers to home ownership: the deposit.

But this recommendation must be implemented along with increased housing supply otherwise it could push property prices up further, the report says.

Committee chair Jason Falinski says all levels of government must work together to increase housing supply and affordability to increase home ownership in Australia.


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“We need to reform broken planning systems, fix inefficient regulation, and stop new home buyers unfairly bearing the brunt of taxes and charges that are designed to raise funds, not living standards,” the Liberal MP said.

The report follows a seven-month inquiry and makes 16 recommendations, many of which relate to working with state and territory governments to reduce housing pressure.

It recommends the commonwealth provide payment incentives to state and territory governments to adopt better planning practices.

But Labor committee members say the recommendations lack national leadership on housing policy.

In addition, the short time-frame of the inquiry meant many important views were not considered, deputy chair Julie Owens says.

“We had hoped that this inquiry would begin to address the structural issues in the housing market and begin the path to more affordable housing for the many,” the Labor MP said.

“Most recommendations are for tweaking the status quo. Those that do recommend something new are poorly thought through and badly explained.”