Australia PM Scott Morrison defends election pitch to lure young voters: Report

As the election campaign enters the final week, Australian Prime Minister Scott Morrison on Monday defended his housing pitch in a bid to lure young voters. Speaking at Channel Seven, Morrison said "It's your money, you have earned it and you have saved it in your superannuation." His statement comes after on Sunday Morrison affirmed that in view of his policy the house prices will remain consistent.

For the unversed, Morrison's election pitch this term has been to the young lot, easing housing affordability in the island continent. He upped his game on Sunday saying those buying homes for the first time could use Australian $50,000 (USD 34,725) from their superannuation account for the property. This means that "a person's super is harnessed to purchase a first home while also protecting their long-term savings plan for retirement," Morrison said, as quoted by Financial Review. The move sets up the contest with his opposition Labour Party over house affordability.

The maximum deposit will lower mortgage payments to add a "layer of comfort to the first home buyers," Morrison told Channel Seven.

Opposition slams Morrison; housing groups welcome move

This comes after lowered interest rates against housing loans led to a boom in the sector last year, despite the windfall for household wealth, CNA reported. House prices skyrocketed by 22.4%, the biggest since 1989. The rise in living costs was flagged by the majority of voters and was listed as the most critical issue for the incumbent Liberal-National Coalition in Australia. The Centre-Left has dubbed Morrison's move as a last-ditch "desperate act of a dying government." Shadow Minister for Housing, Jason Clare told ABC, that Morrison's policy is just like "throwing kerosene in a bonfire."

The Financial Services Council too decried the policy saying that it counters the purpose of superannuation. However, the government argued that the initiative will have a "limited, if any, impact on housing prices." The policy, which is similar to the First Home Loan Deposit Scheme, in which a first home buyer would need to save a deposit of only 5% instead of the required 20%, which helped "tens of thousands" of people to purchase homes.

The 2022 Australian federal election is scheduled to take place on 21 May, Saturday for 151 seats at the House of Representatives. Going into the election, Morrison's Liberal-National Coalition holds 76 seats, while Labor holds 69. Rast of the 6 seats is occupied by independent and minor parties. 

(Image: AP)