Aussies raid industry superannuation funds

APRA has released its weekly update on the Morrison Government’s early superannuation release program, which reveals that a whopping $6.1 billion was withdrawn in the week ended 12 July:

Over the course of the scheme, more than 2.5 million Australians have withdrawn $25.3 billion from their retirement nest eggs, averaging $7,718 per withdrawal.

As shown in the below charts, the top six targets for superannuation withdrawals were all industry funds, which combined accounted for just over half of total early superannuation withdrawals in both number and value terms:

I am expecting further strong growth in superannuation withdrawals, given there was another $2.7 billion in the application pipeline as at 12 July:

Under the Morrison Government’s early release policy, superannuants experiencing financial difficulty were permitted to withdraw $10,000 from their superannuation accounts in 2019-20 and then another $10,000 in 2020-21.

The arrival of the new financial year has clearly triggered a tsunami of withdrawal requests.

Unconventional Economist
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    • “Good” if you believe in supporting current house prices by whatever means, including throwing retirement under the bus.

      • LittleEmperorMEMBER

        Until the major super funds stop charging outrageous fees I’m not going to weep any tears for them. If people waste their super money on housing so be it. That’s their problem (in a few months).

    • If l was in my 20-40’s ld do the same.
      You can’t gear a s/f.
      And having some spare cash around given what’s going on job wise, is smart.
      Why focus 20 yrs down the track, when the key focus is now.
      Also, you can always put it back in super if things work out!

  1. They’ll give everyone another chance to withdraw)10k in the December quarter. It’s great for the economy.

    • Similar thinking but if you consider the first two withdrawals were for financial hardship then it’s possible that they will open it up on other grounds entirely. Principally to stimulate the housing market with a FHB Super Un Conditional Keep Everything Rolling Boost (FHB SUCKER BOOST).

    • At the expense of future taxpayers who will effectively be chipping in to make up the Super shortfalls that will eventuate. Nvm, I’ll sit down with my children and explain that they just have to work longer and pay far higher taxes than prior generations. No doubt they’ll be cock-a-hoop at having to pay for the mismanagement of the several gubbermints that went before.

      • I think you are right about this. I can’t see how this will produce a miracle ending for future taxpayers and superannuants.

      • Had to undo the only example of government planning for the future in Australian history

  2. So, $200bn budget deficit (a rough proxy for the stimulus package) plus, say, $50bn in Super withdrawals, all in the space of a few months …. presumably a ‘one-off’ stimulus boost, so …. what happens when the stimulus has ended and we’re at the ‘You’re on your own’ moment? Hmmmm ….

    I’m sure it’ll all be fine — Keynes foretold it: a bit of stimulus is all that’s needed and the economy will roar into life again. No, really …

    • There won’t be a you’re on your own moment. Deep down all of us here know that.

    • I love the saying, nothing more permanent than a temporary Government program. I think it’s true in terms of JobSeeker / Keeper and all these other support mechanisms.

      • Undoubtedly. The one bit of support that has a limited life is the Super raids. You would assume.

  3. i need an extra 20k for house reno – how can my wife and I (both still working) apply for early withdrawl ?
    The government forgot to add the home improvement option to the list of financial hardship choices on the form

    • The Traveling Wilbur

      PeopleInBunningsKeeper will be arriving shortly. Just before MortgageKeeper and OffshoreInvestmentPropertyOwnerKeeper.

    • I think a lot of people like you have withdrawn the money despite being employed and that’s why the ATO is doing it’s song and dance. Weather or not they will actually check.. and fine you… Is for you to decide.

  4. $25 billion withdrawn so far! F~ck I hate the Liberal National f-ckers. All withdrawn at discounts in crashed market, to spend on sh!t.

    • Have to look after your FIRE mates. This is on top of the rorts in diluting existing shareholders by discounted share raisings and allocations. Free enterprise/capitalism at its finest 🙁

    • Wait until they use Super to prop up housing again.. that’s gonna really boil ya noggin..

    • Jumping jack flash

      25 billion is not a lot when we pay 100 billion to the banks every year just for interest on our mortgages, and we’re about 600 billion+ short of where we need to be with regards to the amount of debt we all own since around 2000.

  5. Diogenes the CynicMEMBER

    It is clear that a lot of crap is being bought on the second hand websites stock has thinned. Nice to see bikes getting some love (cheap personal transport) but how many do people need?