Early access to $10,000 in super extended to 31 December
Australians have been given more time to access their superannuation after Treasurer Josh Frydenberg revealed that the scheme will be extended until 31 December.
The Government’s hardship early access superannuation scheme has allowed Australians to withdraw up to $10,000 in the 2019/20 fiscal year, and an additional $10,000 this financial year up until 24 September.
Mr Frydenberg, in his economic announcement today, said the Government will be extending the application period until to 31 December to increase the scope for individuals who may still be financially impacted by COVID-19 to access early release in the coming months.
“Eligible Australian and New Zealand citizens and permanent residents were able to access up to $10,000 of their superannuation before 1 July 2020. They can access a further $10,000 until 31 December 2020,” the Government announcement said.
It’s believed that around 800,000 people have double-dipped into their super. In the week through 12 July, 581,000 applications for early release were received by superannuation funds which totalled $6.2 billion.
The Government estimated that more than $29 billion would be withdrawn from the scheme.
According to APRA data, more than 3.3 million people have now tapped their super fund for extra cash amid job losses as a result of the coronavirus outbreak.
AustralianSuper, the nation’s largest superannuation fund, has been the hardest hit, paying out more than $3.3bn to members since the scheme’s inception.
Sunsuper members have withdrawn more than $2.5bn, while members in hospitality fund Hostplus have withdrawn nearly $2.2bn. Retail Employees Superannuation members have withdrawn more than $2.2bn.
“Clearly when people have lost income and lost jobs, there’s good reason why people have to take money out,” CommSec chief economist Craig James told The Australian.