Stampede for super

Millions rush to gain early access

THE number of cash-strapped Australians rushing to access their super early during the coronavirus pandemic is likely to climb well above the expected 2.2 million applicants.

Already 1.8 million applications have been approved and more than $14.8 billion has been withdrawn since the scheme began in April, giving successful applicants up to $10,000 of their retirement savings prematurely.

The Federal Government estimates $29 billion will be withdrawn under the scheme.

Between July 1 and September 24, eligible applicants with significant drops to their income can access $10,000.

Pregnant mother-of-two Sheree Mueller, 38, from Cobblebank west of Melbourne, is among many applicants furious with industry fund Hostplus for the long delays in getting their money.

“I’ve lost close to $1600 a fortnight by not working and this has been incredibly stressful waiting for the money,” she said. “We’ve put a deposit down on a package for a new mattress, lounge, dining table and nursery, so the money was going towards that and to pay off some credit card debt.”

Mrs Mueller had worked in hospitality and applied for early super access on May 7.

She got approval from the ATO just four days later, but three weeks on is still waiting.

The financial regulator – the Australian Prudential Regulation Authority – recommends funds process applications within five business days of receiving them from the ATO.

The Assistant Minister for Superannuation, Financial Services and Financial Technology Jane Hume said the scheme had helped many Australians in financial trouble.

“This flexible, demand-driven, voluntary initiative allows Australians who have suffered financial hardship due to COVID-19 to withdraw some of their hard-earned savings,” she said. “It is important to remember that behind every one of these applications is a story of financial hardship.

“This is a targeted, temporary and proportionate measure allowing Australians to access their own money, when they need it most.”

Industry Super Australia chief executive officer Bernie Dean said funds were taking a “prudent approach to deliver members the support they need quickly”.

A Hostplus spokesman said some members had experienced delays.

“We are working through all outstanding requests as a matter of urgency,” he said.