A key Senate crossbencher insists there is no merit in letting first home buyers divert superannuation into a special savings account in order to raise a deposit.
"It's crazy," Derryn Hinch told ABC Radio, adding it would push more people onto the pension, which would inevitably cost taxpayers more money.
Senator Hinch favours making it easier for older people to downsize their homes by ensuring the move didn't affect their eligibility for the pension, in order to improve housing affordability.
There is speculation the federal government will consider allowing young people to divert super contributions into a special savings account which they will have to match dollar for dollar from other savings.
Housing affordability is expected to be a key plank of the May 9 federal budget.
Senator Hinch said many young people have unrealistic expectations when it came to buying property.
"Owning your own home is not an Australian right, it's a dream and everyone wants to do it," he said, adding you're not necessarily going to get a two-car garage at 22-years-old.
Deputy Prime Minister Barnaby Joyce declined to comment on the government's plans.
"I know it's terribly tough in Sydney and Melbourne," he told ABC Radio, adding that people should consider moving to regional cities and towns for cheaper housing.
