Cumulative early super withdrawals now stand at $23.3 billion, rapidly approaching the initial Treasury estimate of $27 billion. The latest data includes a “significant increase” of 511,100 applications from 29 June to 5 July, with approximately 346,000 Australians making a repeat withdrawal. With 165,000 initial applications also being made, the total number of applications now stands at 2.7 million since the inception of the scheme.
Previous reports had indicated that the amount withdrawn would be considerably higher than is now being reported, with a spike of $7.1 billion expected. Research conducted by Industry Super Australia prior to the scheme indicated that there was likely to be $35 – $40 billion withdrawn from superannuation as a result of COVID-19.
“Unfortunately, 1 million more people than the government estimated have accessed the government’s early release of super scheme,” ISA chief executive Bernie Dean told Investor Daily. “That so many young Australians have accessed their super savings in the middle of their working life is a tragedy waiting to happen.
“Unless the government sticks to the legislated super rate increase the legacy of the early release of super scheme could be a generation of workers more reliant on the pension – a bill we all pay through higher taxes.”
Investor Daily understands APRA’s release of the early super data, usually slated for Monday, was delayed due to the added complexity of processing both the first and second tranche of the scheme.
Let people access their entire super balance – that will get the economy back on its feet in no time.
Why do you call them union funds? They have union and employer board representation and thus cater to the needs of both business and members.
They are union funds because they are controlled by unions and run for the benefit of unions. “Employer” board representatives have about as much influence as former cricketers appointed to the boards of property developers.
Wouldn’t it be hilarious if the union funds PR campaign against this scheme actually had the effect of raising awareness of the withdrawal opportunity, and the second tranche ended up being a bigger total than the first!
A pathertic reason to increase the SGC to 12% from 9.5% which affects the already ailing small business sector…a recipe for reducing staff numbers and increasing unemployment. If people were encouraged to contribute to super, AND, this was savings they had physically set aside (rather than free money from the employer) they would have been much wiser with what they spent money on!
This was such a Fvck up from the government I can’t even fathom the decision the idiocy in the making process these baboons have made..