Long wait for super

Access delay for thousands

THOUSANDS of Australians are still waiting for early access to their superannuation, despite the scheme ending nearly six weeks ago.

Figures released yesterday by the Australian Prudential and Regulation Authority (APRA) showed that, at January 31, there were still 8000 applications for early release of super that had not been finalised.

APRA said the delay in processing the applications was “because funds had been unable to contact applicants to finalise payment”.

The Australian Institute of Superannuation Trustees’ chief executive officer, Eva Scheerlinck said there could be several reasons for processing delays, including funds being unable to contact applicants to finalise payment”.

“Applicants waiting for their payout should go online and check that their personal details with their super fund are correct and up to date, including their mobile number,” she said. “If your details are up to date, and you are concerned that your payment is being held for another reason, then consider contacting your fund.”

The early release of superannuation scheme ran from April 20 to December 31. Over the eight-month period, more than 4.9 million applications were received and about 4.8 million had been paid out, to a total value of $36.4bn.

That fell nearly $6bn below the total withdrawal predictions. The average payment was $7638. About 95,000 applications had been closed or knocked back without payment.

The scheme was rolled out by the Federal Government to help financially struggling Australians during the coronavirus pandemic.

It allowed eligible applicants to access up to $10,000 until June 30, and another $10,000 up until December 31. The withdrawals were tax-free.

To be eligible applicants had to had suffered an income loss or been made redundant. Funds were typically able to process applications and make payments in a timely fashion – on average, just over three days.