Millions of cash-strapped Aussies rush to access super early

THE number of cash-strapped Australians rushing to access their super early under the Federal Government’s scheme 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Already 1.8 million applications have been approved and more than $14.8 billion has been withdrawn since the scheme started in April, giving successful applicants up to $10,000 of their retirement savings prematurely.

The Federal Government has estimated $29 billion will be withdrawn under the scheme.

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

Pregnant mother-of-two Sheree Mueller, 38, from Cobblebank, 31km west of Melbourne, is one of many applicants who have been furious with industry fund Hostplus for the long delays in getting her money.

“I’ve lost close to $1600 a fortnight by not working and this has been incredibly stressful, waiting for the money,” she said.

Mrs Mueller works in hospitality and has been without work since COVID-19 hit, forcing her to apply for early super access on May 7.

She got approval from the ATO just four days later, but three weeks on she is still waiting to withdraw $10,000 from her $56,000 in retirement savings.

The financial regulator, the Australian Prudential and

Regulation Authority, recommends funds process applications within five business days of receiving them from the ATO.

Assistant Minister for Superannuation, Financial Services and Financial Technology Senator Jane Hume said the scheme had helped a lot of Australians in financial trouble.

Industry Super Australia chief executive 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 in receiving their early release payments.

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