The prudential regulator has told super funds they must release member funds within five business days in the vast majority of cases if they have been assessed as eligible for the government’s early release scheme.
In a statement, Assistant Minister for Superannuation, Financial Services and Financial Technology Jane Hume said the government welcomed the announcement by APRA that it expected super funds to make release payments to members meeting the eligibility criteria for the scheme "as soon as practicable" after approval from the ATO.
"In the vast majority of cases this should be no longer than five business days," Ms Hume said.
"I welcome this guidance from APRA. 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.
"This is an opportunity for the super funds to demonstrate their commitment to their members at the time they need it the most."
APRA's guidelines for super funds' COVID-19 response, updated on Thursday, state that payments must be made by super entities within five business days if they have not identified any compliance red flags around the release.
Formal applications for the scheme will open on Monday, with over 600,000 fund members already having registered interest with the ATO.
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