I doubt people will ever be allowed to withdraw their super to pay off the mortgage. Where this issue might get interesting politically is the use of superannuation for a first home deposit. When Super was introduced the sticker price on a new home in Sydney or Melbourne was relatively modest. It wasn't all that difficult to save a 20% deposit but servicing the mortgage could be a challenge. Now provided you're employed servicing the mortgage is easy, saving the deposit is difficult. It's agreed pretty much universally that it's very desirable to own your own home before retirement. Having savings in super for a young person is a barrier to entry to the property market. I wouldn't be at all surprised if the Libs go to the next election with a policy that you can withdraw from your super up to dollar for dollar with your personal savings to fund the deposit for a first home.
