Australia’s early superannuation withdrawals balloon to $28 billion

APRA has released its weekly update on the Morrison Government’s early superannuation release program, which reveals that another $2.7 billion was withdrawn in the week ended 19 July:

Over the course of the scheme, more than 3.6 million applicants have withdrawn $28.0 billion from their retirement nest eggs, averaging $7,719 per withdrawal.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 $1.7 billion in the application pipeline as at 19 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. Moreover, the Morrison Government last week announced that it would extend the deadline for withdrawals by three months to 31 December 2020.

Leith van Onselen
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