This second interim report explores policy options for harnessing superannuation to assist homeowners during the repayment stage, with particular focus on mortgage offset.

The subject of this Inquiry is improving consumer experiences, choice, and outcomes in Australia’s retirement system. The Committee’s first interim report considered ways to harness superannuation to help first home buyers overcome the deposit hurdle. 

Recommendation
The 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
• what regulatory permissions would be needed for such a product, and how these might be legislated 
• whether an Authorised Deposit-taking Institution issuing such a product would be required to apply for a license variation 
• 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 
• 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)
• whether eligibility for any 'Super mortgage offset account' should be limited, either initially or on an ongoing basis, to first-home buyers.