Coronavirus Australia: Fury as Aussies ‘forced to pay for COVID-19’

It was touted as a way of helping us through the coronavirus crisis – but experts say this policy is using our savings as a “national relief fund”.

Yesterday was the first day Australians could apply to access their superannuation early to help them get through the coronavirus crisis.

But as countless struggling taxpayers scramble to take up the scheme, backlash is growing, with critics claiming the policy would lead to massive inequality with vulnerable residents sacrificing their long-term future to pay for the COVID-19 pandemic.

THE SCHEME

The Federal Government recently announced retirement funds would be made available to those experiencing financial hardship because of the coronavirus crisis.

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Eligible Aussies will be able to grab $10,000 from their super this financial year and a further $10,000 in 2020-21, with applications being accepted through Australian Taxation Office online services in myGov from Monday, April 20.

The ATO also recently revealed a staggering 618,000 fund members had already registered to take cash out before that date.

THE BACKLASH

But Kirstin Hunter, managing director of ethical super fund Future Super, said superannuation was “never intended to be a national relief fund”.

“While it seems like allowing Australians to access their super early to get them through hard times makes sense, it’s actually asking some of the most vulnerable people in our society to make the choice between food on the table today or a liveable future,” she told news.com.au.

“Allowing early access to super is not the only way for us to get out of this.

“The Australian government currently hands out billions of dollars in taxpayer-funded subsidies to corporations. The fossil fuel industry receives some of the biggest subsidies, with $12 billion going to coal, oil and gas companies last year.

“The reason this figure is larger than any other industry is not because of this industry’s size. It’s because the industry is failing.”

Ms Hunter said the Fund Our Future petition was launched to help those who would be most impacted by accessing their super.

“We’re standing up for the baristas who make our coffees, the pilots who get us safely home and all other working people who should not have to pay for our public health crisis. The petition opened last night and is the first of its kind,” she explained.

“We’re calling on the Australian government to stop propping up failing industries, and put its people first and protect the futures of hardworking Australians.

“Divert subsidies to repay Australians that had to borrow from their super.”

The petition argues that, “Even in crisis, putting people before profit is possible. So that’s exactly what we’re asking the government to do.”

But it’s not the only superannuation campaign gaining traction.

Paul Robinson recently launched a #SaveOurSuper Change.org petition calling on the government to repay what he termed Australia’s “$50 billion superannuation ‘People’s Loan’.”

The petition argues COVID-19 should not leave the country with an “even more entrenched retirement underclass in 30 years”.

It demands the government commit to “dollar for dollar super contribution matching” for all accounts valued below $100,000 in 2022, up to a contribution value of $22,000.

“It is projected that as much as $50 billion could be lost from people’s retirement savings — functioning as a gigantic ‘people’s loan’ that will spare the government from borrowing billions elsewhere to support us (and the landlords, bankers, corporations, and multinationals) during the crisis,” the petition states.

The pandemic has left countless Aussies out of work. Picture: Glenn Hampson

“But Australians taking money out of our retirement savings haven’t been asked if we consent to participating in this multi-billion dollar informal bailout.

“If you’re poor, you lose now and you lose later.”

Mr Robinson said he was a “regular guy” who felt compelled to act.

“I don’t usually get involved in anything political, in fact I usually try really hard to avoid it, but to me it seems really unfair that people are being put in a position of having to chose between surviving now or in their old age – I wasn’t seeing anyone doing anything about it,” he told news.com.au.

“I don’t know if this is a perfect answer, or a perfect policy – I’m not an economist. And I don’t know if a petition is a perfect way of getting people talking about this.

“But we do need to talk about it, and we need some sort of policy. Because this will have a massive impact, and we can’t just kick that can down the road.”

Australian Securities and Investments Commission senior executive leader, financial capability Laura Higgins previously told news.com.au Australians should consider two other options before withdrawing super.

“Firstly, have you considered other options such as government financial assistance or applying for a hardship variation on your mortgage? Secondly, are you considering the long-term impacts?” she said.

“Money withdrawn and spent now is money you won’t have invested for the future. Go to Moneysmart.gov.au and make an informed decision.”