List of recommendations

Recommendation 1

2.76The committee recommends that the Australian Government further explore the potential design of a super mortgage offset product applicable to a homeowner’s primary residence; the pros and cons of different options; and the regulatory settings that would be needed to permit development of such a product. Issues for further investigation should include:

the amount of superannuation a homeowner could roll into a “Super mortgage offset account” product issued by an Authorised Deposit-taking Institution;

what regulatory permissions would be needed for such a product, and how these might be legislated through the relevant superannuation and banking supervision legislation;

whether an Authorised Deposit-taking Institution issuing such a product would be required to apply for a license variation through the Australian Prudential Regulation Authority as the regulator;

what the tax implications would be, for individuals and the government, of allowing an amount of a person’s superannuation to be rolled into a “Super mortgage offset account”;

whether the superannuation amount in the “Super mortgage offset account” would need to be held as cash by the Authorised Deposit-taking Institution;

the way in which the amount in the “Super mortgage offset account” is required to be returned to the homeowner’s superannuation account once the outstanding mortgage falls below the amount in the offset account (and, ultimately, is discharged); and

whether eligibility for any “Super mortgage offset account” should be limited, either initially or on an ongoing basis, to first-home buyers.