Retirement
Early access to super scheme tipped to reach $42 billion
The government has revised its superannuation expectations and now believes nearly $42 billion will be removed from the system, having previously estimated $27 billion at the start of the pandemic.
Early access to super scheme tipped to reach $42 billion
The government has revised its superannuation expectations and now believes nearly $42 billion will be removed from the system, having previously estimated $27 billion at the start of the pandemic.
Up to 20 Australians a day are applying for early access to up to $10,000 in superannuation under the COVID-19 hardship provision.
New figures revealed that at least 3.8 million withdrawals totalling $31.9 billion had been made as of 28 July.
These include payments to 300,000 temporary visa holders.
Under the program extension, $41.9 billion is expected to be withdrawn from funds come December.
Robert Jeremenko, the Treasury’s division head of retirement income policy, told the Senate committee on COVID-19 on Thursday that the government was now expecting $41.9 billion to be removed from the super system following the extension of the scheme to December and taking into account “lived experience” of the pandemic, which indicated consumers had taken up the scheme in higher numbers than expected.
“The early access measure was developed in early March, and I don’t think anyone in Australia would have been able to predict what the impact of the pandemic was,” Mr Jeremenko said.
“What we had to do was use our best estimate, but the actual lived experience of those first three months up to 30 June was actually that we had $20.1 billion removed. So, what we did was, given the extra three months of actual numbers, assume a certain take-up for the remaining three months plus the extension.”
Mr Jeremenko added that Treasury could revise up the expected withdrawal numbers further depending on how many more consumers access the scheme.
“This six months we are in now, they are estimates. They are best estimates, but we will revise as we have done when we see actual numbers coming through and that will give us a real feel of the level of uptake,” he said.
About the author
About the author
Superannuation
Young people $100k worse off in retirement
Young Australians who withdrew the maximum $20,000 under the government’s early access to superannuation scheme could be $100,000 worse off, according to the Labor Party. ...Read more
Superannuation
Withdrawing super could cost less than you think
The impact of early access to superannuation could be exaggerated, with most Australians still likely to experience a comfortable retirement despite digging into their nest egg, new research has found...Read more
Superannuation
Labor takes early access to super scheme to Auditor-General
The Morrison government’s early access to superannuation scheme has been referred to the Auditor-General as it has been revealed that the Tax Office did not check eligibility. ...Read more
Superannuation
Why Insurance in super is ill-suited for mental health conditions
Members with a mental health condition might not be getting bang for their buck through their total and permanent disability insurance, new research has found. ...Read more
Superannuation
Keating attacks super withdrawal as a burden on young Australians
Former prime minister Paul Keating has slammed the Morrison government’s controversial early access to superannuation scheme, saying it shifts the burden of economic stimulus onto younger Australian...Read more
Superannuation
ATO conducts early access to super compliance blitz
Hundreds of Australians who applied for the COVID-19 early access to superannuation scheme are tipped to have their eligibility questioned as the ATO kicks off a pilot compliance program. ...Read more
Superannuation
Early access to super: A band-aid fix for a bigger issue?
More government support is needed to help financially distressed Australians, as forecasts for the early access to super scheme blow out to more than 150 per cent of initial estimates. ...Read more
Superannuation
Nod of approval given to new super fund merger
A new merger will cement one fund’s status as the second-largest industry super fund in Australia. ...Read more
Superannuation
Young people $100k worse off in retirement
Young Australians who withdrew the maximum $20,000 under the government’s early access to superannuation scheme could be $100,000 worse off, according to the Labor Party. ...Read more
Superannuation
Withdrawing super could cost less than you think
The impact of early access to superannuation could be exaggerated, with most Australians still likely to experience a comfortable retirement despite digging into their nest egg, new research has found...Read more
Superannuation
Labor takes early access to super scheme to Auditor-General
The Morrison government’s early access to superannuation scheme has been referred to the Auditor-General as it has been revealed that the Tax Office did not check eligibility. ...Read more
Superannuation
Why Insurance in super is ill-suited for mental health conditions
Members with a mental health condition might not be getting bang for their buck through their total and permanent disability insurance, new research has found. ...Read more
Superannuation
Keating attacks super withdrawal as a burden on young Australians
Former prime minister Paul Keating has slammed the Morrison government’s controversial early access to superannuation scheme, saying it shifts the burden of economic stimulus onto younger Australian...Read more
Superannuation
ATO conducts early access to super compliance blitz
Hundreds of Australians who applied for the COVID-19 early access to superannuation scheme are tipped to have their eligibility questioned as the ATO kicks off a pilot compliance program. ...Read more
Superannuation
Early access to super: A band-aid fix for a bigger issue?
More government support is needed to help financially distressed Australians, as forecasts for the early access to super scheme blow out to more than 150 per cent of initial estimates. ...Read more
Superannuation
Nod of approval given to new super fund merger
A new merger will cement one fund’s status as the second-largest industry super fund in Australia. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
