It comes after guidance from the Australian Prudential Regulation Authority (APRA), which said super funds will be expected to make early-release payments to members who meet the eligibility criteria as soon as practicable.
Jane Hume, assistant minister for superannuation, financial services and financial technology, has welcomed the guidance, stating: “This is an opportunity for the super funds to demonstrate their commitment to their members at the time they need it the most.”
The scheme, which will allow Australians suffering financial hardship access to $10,000 from their superannuation this financial year, and a further $10,000 next financial year, was part of Prime Minister Scott Morrison's second stimulus package in response to COVID-19.
“Given the importance of cash flow for many people at this critical time, the Morrison government expects super funds to be paying members their money as quickly as possible, and within five business days.”
“We understand this is a very challenging time for all Australians. These measures will ensure that Australians impacted by the COVID-19 pandemic will receive this vital financial support as quickly as possible,” she stated.
The five-day announcement comes after ASIC said temporary rule changes would enable registered tax agents to provide their clients with superannuation-related financial advice, subject to a number of conditions.
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