Early superannuation withdrawals near $30bn

Australian’s have come back for a second hit at their super balances.

Australia’s largest super fund, Australian Super, remains the largest source of applicants.

The wave of superannuation double-dipping has continued apace with 218,626 Australians coming back for more in what is proving to be a $29bn hit to the industry.

In the week ending July 19, 296,805 people applied for early release of their superannuation funds in the second week of the second round of application.

The latest round saw a $1.62bn blow to Australia’s superannuation balance sheet.

This follows 581,000 who pulled money out of their superannuation accounts in the first week of the second round.

Early estimates from the government suggested more than $27bn would be withdrawn under the scheme.

Grattan Institute program director for household finances Brendan Coates said the latest figures were “very high” and it was time that the scheme’s criteria be tightened.

“There’s much less of a rush now in getting that money into people’s pockets,” he said.

“It wouldn’t be administratively onerous for the ATO to verify people’s incomes against the single touch payroll system or verify that people have received – that people qualify based on documentation they provide.”

More than 3.8 million Australians have now accessed their superannuation.

Average payments to fund members stand at $7719, but the most recent round has seen that tally slacken off to $7723.

Mr Coates said it was clear that some young Australians were emptying their entire super balances given the hit had been keenly felt by the young.

“If you’d emptied it of $4000 the hit to your retirement would be lower than if you’d taken $20,000,” he said.

Australia’s largest super fund, Australian Super, remains the largest source of applicants, having delivered $4bn in payments to members since the scheme began.

The most recent week saw the scheme pay out $217m to the 29,309 who applied.

Hostplus, which represents hospitality workers, has seen the highest rate of repeat applications in relation to initial applications, of the top five funds.

Initial and repeat applicants of that scheme have withdrawn $2.54bn since the scheme opened.

Unisuper, which represents members of Australia’s hard-hit tertiary education industry, has paid out $203m since the scheme opened.

Recent job cuts have seen staff slashed across campuses with thousands more jobs under threat.

In the most recent tranche of withdrawals 1345 members withdrew a combined $11.21m.

Members of the Australian Post Superannuation Scheme have pulled out more than $34.77m since the scheme opened.

The average payment made to members of the post scheme stands at $9734, one of the highest in the country.

In the past week, 222 members withdrew $2.125m.