Federal Member for Lyne Alison Penfold has criticised the Albanese Government’s reported agreement with the Greens to restrict self-managed super funds, describing it as a broken promise that would reduce Australians’ ability to make decisions about their retirement savings.
Penfold said the Government planned to ban new Limited Recourse Borrowing Arrangements (LRBAs) for residential property within self-managed super funds.
“Most people in Lyne have probably never heard of an LRBA, but the concept is quite simple,” Penfold said.
“It allows a self-managed super fund to borrow money to purchase an investment property as part of a retirement strategy, much like a family might borrow to buy a home or investment property.”
“Under these arrangements, the lender’s rights are limited to the asset itself, which is why they are called ‘limited recourse’ loans.”
“For some Australians, particularly small business owners, farmers and people who want more control over their retirement savings, this has been an important option.”
Penfold said Labor was presenting the policy as a housing affordability measure, despite it doing little to address the underlying causes of Australia’s housing crisis.
“The housing crisis wasn’t caused by retirees investing through their super fund.”
“It was caused by years of governments failing to build enough homes, deliver enough infrastructure and remove barriers to new housing supply.”
“If Labor was serious about housing affordability, it would do more to reduce planning red tape, the cost of construction and invest more in enabling infrastructure.”
Penfold said the decision was particularly concerning because it had not been put to voters before the election.
“Before the election, Australians were repeatedly told Anthony Albanese would not be governing through deals with the Greens.”
“Yet once again we see Labor cutting a deal with the Greens to pursue policies Australians never voted for.”
Penfold said the changes could also disadvantage some women.
“Women often retire with lower super balances because they have spent years raising children, caring for family members or rebuilding financially after separation or divorce.”
“For some women, investing through a self-managed super fund has provided an opportunity to build financial security later in life.”
Ms Penfold said the broader issue was Labor’s approach to aspiration and personal responsibility.
“People who choose a self-managed super fund are taking responsibility for their own future.”
“They are working hard, saving hard and making long-term decisions to provide for themselves in retirement.”
“The Coalition backs aspiration and choice.”
“Labor and the Greens continue to believe government knows best.”
“This latest deal is another example of Anthony Albanese breaking his promise not to govern through arrangements with the Greens and another example of Australians losing control over decisions that should be theirs to make.”
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