NASFund Warns Members on Housing Advance Limits Amidst Calls for Reform

NASFund Chief Finance Officer Debbie Oli is urging members to exercise caution when utilizing the fund's Housing Advance Scheme, particularly concerning their initial withdrawal. Oli highlighted that current legislation imposes a significant restriction: a member's second housing advance cannot exceed the value of their first advance, irrespective of substantial growth in their superannuation balance over time.

This limitation has caused frustration among members, as many were unaware of the restriction when they first accessed the scheme. Participants at the Hausples Expo 2026 raised concerns, noting that individuals later discover they cannot leverage their larger superannuation savings to purchase or upgrade a home. Oli acknowledged these frustrations, explaining that the limitation is a legislative prescription that NASFund cannot alter independently.

NASFund has been actively engaged in discussions for legislative reform, raising the issue through the Superannuation Association of PNG and directly with government officials and regulators. However, Oli stated that the fund is unable to offer a timeline for when these laws might be amended. She reiterated the advice for members to carefully consider the amount withdrawn in their first housing advance, as it directly dictates the maximum they can access in a subsequent advance.

Under the existing Housing Advance Scheme, members must have contributed to NASFund for at least five years. They are permitted to access up to 100 percent of their employee contributions for the purpose of building, buying, or renovating their primary residence. A mandatory requirement following a housing advance is for members to increase their employee contribution by an additional two percent to help replenish their retirement savings.

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