Federal Labour opposed the proposal to let young people pay down payments from pension funds, saying they would "do all they can" to fight it, while Treasury Secretary Morrison supported the controversial idea.
ABC learned of Morrison`s support for a proposal for young people to put employers` mandatory pensions into a special account.
Some small-party senators also supported the proposal, but Shadow Treasury Secretary Chris Bowen said the move would damage pension savings and push house prices higher.
This attention was first made in 1993, and was raised again in 2015. The Australian pension fund industry is critical of this.
In this model, people can use up to three years of pension contributions. Then they had to use one to one after-tax income to match their pension contributions.
For a person with an annual income of 80, 000, they would have a balance of A $45600, plus interest, in their home-buying savings account for three years, at 9.5 percent of the minimum statutory contribution rate.
The government will have an age limit for those who can do so, which has not yet been put in place.
The proposal is also controversial in the cabinet, which has yet to approve it for fear that it could push up house prices.
Matthew Linden, director of public affairs for Australian industry pension funds, said the move would push house prices higher and damage pension savings.
"this early use of pension contributions would make people miss the magic of compound interest and have a significant impact on their eventual retirement savings." He said。
"when a person is 30, using his three-year pension contribution means he will miss the 35-40-year-old compound interest return, which is the equivalent of being laid off in your fifties."
Assistant Treasury Secretary Michael Sukkar is working on a housing affordability plan for next month`s budget.
In the Senate, Labour and the Greens oppose the plan, and Senator Nick Xenophon of South Australia cautiously welcomes it. Senator Derryn Hinch, a small Victorian senator, scoffed at the plan.
Former Prime Minister Albert said Monday that the proposal is good and needs to be considered.
