More than $12 billion worth of applications have now been made for early release super, for a total of 1.78 million applications received and 1.63 million paid. Most payments have been completed within 3.3. business days, while 94 per cent of applications have been paid within five business days.
Over the week to 24 May, super funds made payments to 220,000 members, with the average payment at $7,746 since inception. The 10 funds with the highest number of applications have made 1.09 million payments worth a total of $8.13 billion, while the average payment from these funds was $7,595. Over 93 per cent of payments from these funds were made within five days.
While the numbers are so far in line with Treasury estimates, and the number of new applications appear to be declining, there could be a tax time spike.
“Particularly if we don’t have more certainty around the doubling of the JobSeeker allowance and any more announcements in relation to JobKeeper,” Eva Scheerlinck, chief executive of the Australian Institute of Superannuation Trustees (AIST), told Investor Daily. “There might be some people who look to access their super just in case, if they don’t feel confident about there being financial support for them in the longer-term.
“We do expect it to keep trending down but probably before the end of June, there’ll be another spike and then after July when people go to the [ATO] website to do their taxes, to do their tax return, there might be another spike on the other side as well.”
Nothing has highlighted the need for access to affordable financial advice more than the early release of super scheme. Sadly, as adviser numbers continue to dwindle, and costs continue to rise for advisers, the future of financial advice (not to be confused with FOFA which was aimed at getting more Australians into unadvised industry funds) looks very bleak. The biggest losers are hard working Australians who can no longer get advice, followed by advisers who will only be able to afford to service the wealthy.
More amazing is seeing people with monthly SGC still going in that are claiming EROS under this measure. This hasn’t been monitored properly it is an absolute debacle.
Why is this necessarily a problem? People could be receiving SG on far lower salaries than normal, and need extra from their super to pay their mortgage and feed their kids.
Alternatively, they might work in one of the many fields where there is a long lag between service delivery and revenue received. They need to withdraw some super now while they can, in preparation for an impending income reduction.
Surely if the employer SGC hasn’t reduced (same income) and its a good income that is a pretty obvious red flag that they are breaching the rules. It hasn’t been monitored it has been a debcale.