THE UPCOMING federal election is set to be fiercely contested on two critical issues: the cost of living and the housing crisis.
Like every other regional city in Australia, Hervey Bay is deeply affected by these challenges.
Opposition Leader Peter Dutton announced a policy allowing first-home buyers to access up to $50,000 of their superannuation for a home deposit.
This policy could be a decisive factor in the election outcome.
While it may appear populist, its implications are significant and far-reaching.
The policy is likely to resonate with a broad spectrum of voters.
Young Australians struggling to enter the property market will see it as a lifeline, while parents who have financially supported their children’s homeownership aspirations—the ‘Bank of Mum and Dad’—may also welcome the relief.
In regions like Hervey Bay, where housing affordability remains a major concern, this initiative could provide critical support.
The Coalition believes property investment can yield greater long-term benefits than traditional superannuation investments.
By allowing first-home buyers to use a portion of their superannuation for a home deposit, the policy aims to fast-track homeownership.
Given the historical capital appreciation of property—particularly in high-growth markets like Hervey Bay—this approach may provide stronger returns than some superannuation funds.
More importantly, it offers immediate housing security and a tangible investment in the future.
This policy challenges Labor’s concerns that it undermines long-term financial stability by prioritising short-term homeownership gains.
Recent legislative changes in Queensland further support this initiative.
The abolition of stamp duty for first-home buyers of new builds and land—alongside existing exemptions for established homes—creates additional incentives for aspiring homeowners.
These factors strengthen the Coalition’s position heading into the election.
Hervey Bay has experienced significant population growth in recent years, driven by its affordability and coastal lifestyle.
However, this growth has intensified housing demand, increasing property values and rental prices, making it difficult for young residents to enter the market.
A combination of limited housing supply, rapid population expansion, and stagnant wages relative to housing costs has worsened the affordability crisis.
The Coalition’s superannuation policy could be a key mechanism for youth retention in Hervey Bay—an issue highlighted by the Fraser Coast Regional Council and the Fraser Coast Property Industry Association.
By enabling earlier access to homeownership, young professionals and families are more likely to stay in the region, bolstering the local economy and fostering long-term community stability.
Homeownership is a driver of regional prosperity, ensuring a stable workforce and continued economic growth.
Nationally, first-home ownership patterns have shifted over the past decade.
The average age of first-home buyers has risen, reflecting the increasing difficulty of saving for a deposit amid rising property prices.
This trend underscores the need for policies that provide financial flexibility, enabling younger Australians to achieve homeownership sooner.
Industry leaders have voiced support for the Coalition’s proposal.
Jocelyn Martin, Managing Director of the Housing Industry Association, stated: ‘This policy acknowledges the reality that for many Australians, saving for a deposit is the greatest hurdle to entering the housing market.’
Such endorsements highlight the policy’s potential to remove one of the most significant barriers for prospective first-home buyers.
However, Tom Panos, Australia’s top real estate coach and News Corp columnist, warns of historical precedents that suggest caution.
He points to New Zealand’s KiwiSaver HomeStart scheme, introduced in 2010—a policy similar to Dutton’s proposal.
Since its inception, house prices in New Zealand surged by 134%, outpacing growth in the previous two decades and exceeding Australian price increases by 1.5 times.
First-home buyers were particularly hard hit, assuming substantial debts to compete in the escalated market.
Additionally, under the New Zealand model, the proportion of first-home buyers taking out loans with a loan-to-value ratio (LVR) above 80% tripled, raising concerns about financial stability.
The voting public increasingly demands decisive leadership that challenges the status quo.
The ‘Trump effect’ has demonstrated that strong, fearless leadership resonates with the public, even when it disrupts traditional political norms.
At the same time, younger generations are frustrated with government overreach, particularly regarding personal freedoms and financial decisions.
Many are tired of being told how to live their lives and manage their money, including their superannuation.
People want a government that respects their independence rather than one that dictates their choices.
Ultimately, allowing first-home buyers access to their superannuation presents both opportunities and risks.
It offers a potential solution to the housing affordability crisis, particularly in high-demand regions like Hervey Bay, and is likely to appeal to voters seeking tangible solutions to economic challenges.
In my view, this policy will be the decisive factor in shaping the outcome of the 2025 Federal Election.
What are your thoughts?
