Early super withdrawals will soon overtake Treasury estimates for the first time as half a million Australians access the second tranche of the scheme.
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Previous reports had indicated that the amount withdrawn would be considerably higher than is now being reported, with a spike of $7.1 billion expected.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conducted by Industry Super Australia prior to the scheme indicated that there was likely to be $35 – $40 billion withdrawn from superannuation as a result of COVID-19.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.