Super access becoming a gamble for some

PEOPLE who are withdrawing their superannuation early during the coronavirus crisis appear to be overwhelmingly spending it on discretionary things such as gambling, clothes and furniture.

Labor says new analysis released yesterday from illion and AlphaBeta, part of Accenture, shows the deal to let people withdraw their retirement savings early needs a rethink.

More than 1.8 million people have withdrawn about $15 billion so far. About a third are under 30.

The data analyses bank transactions from 13,000 people who withdrew money under the scheme.

People are allowed to take up to $10,000 out of their superannuation accounts now and another $10,000 after July if they’re experiencing hardship.

The average withdrawal is $8000 and about one-third is being spent in the first two weeks. But the analysis found two-in-five people didn’t have any drop in their income.

Those who accessed the money spent $2855 more than their usual fortnightly average.

More than 10 per cent, or $327, was spent on online gambling — the second-highest spending in any category, behind repaying debts.

The Government sees no problem with this. Treasurer

Josh Frydenberg said it was their money “and they will use that money for a range of purposes”.

But Labor’s financial services spokesman Stephen Jones said the analysis indicated the scheme wasn’t working.

“More than one-in-10 dollars that have been accessed from the early access scheme is going to some overseas online gambling operator,” he said.

“How is that stimulating Australia’s economy?”