Ann: Funds Under Management - July 2020, page-6

Early access superannuation scheme estimated to hit $42 billion in coronavirus support

By political reporter JaneNorman Posted 30 July 2020

More than half a million Australians are estimated to have "completely cleaned out" their superannuation savings during the COVID-19 crisis, as Treasury predicts workers will withdraw a total of $42 billion under the early-access scheme.

Treasury … radically revised that forecast up to $42 billion to reflect the Federal Government's decision to extend the scheme until the end of the year, in light of Victoria's second coronavirus lockdown.

Treasurer Josh Frydenberg said more than 2.6 million Australians had benefited from the early access to their super and hit back at opponents of the scheme.

www.abc.net.au/news/2020-07-30/early-access-superannuation-estimate-double-coronavirus-payment/12505984

Superannuation early withdrawals near $30b as new financial year sees double-dipping

By business reporter DavidTaylorPosted 16 July 2020

Banking regulator APRA's weekly update on early superannuation access shows, since the pandemic struck, 2.7 million accounts have been drawn down. Industry super fund HESTA has confirmed to PM it had more than 47,000 withdrawal applications in the first two weeks of July.

Assistant Minister for Superannuation and Financial Services Jane Hume told PM that the Tax Office has so-far approved almost $30 billion of super withdrawals. However, she pointed out that is only a fraction of the roughly $3 trillion Australian superannuation pool.

www.abc.net.au/news/2020-07-16/coronavirus-super-early-withdrawals-near-30-billion-dollars/12459648

Coronavirus superannuation early withdrawal scheme hits $25 billion as new financial year starts

By businessreporter MichaelJandaPosted 7 July 2020

The latest figures show up to 2.4 million people have applied for early withdrawal of part of their superannuation, with around $25 billion worth of applications approved by the Tax Office.

The ATO data covers the period from when the scheme opened up to July 2, with more applications expected as the second tranche of withdrawals only opened on July 1.

Under the scheme, those experiencing financial hardship due to the COVID-19 pandemic could withdraw up to $10,000 from their funds last financial year and a further $10,000 this financial year, without facing tax penalties for taking the money out of super.

Data from the superannuation regulator, APRA, appears to show an early rush for extra withdrawals in the new financial year.

"High volumes of applications are expected for the start of the second tranche of the COVID-19 Early Release Scheme in early July," APRA noted in its latest update.

So far, the six funds with the most withdrawals have been not-for-profit industry super funds, with the biggest of them — Australian Super — paying out the most, more than $2.4 billion.

Sunsuper, REST, HOSTPLUS and CBUS have also all seen withdrawals of more than $1 billion so far.

BT, MLC, OnePath and Colonial have seen the biggest withdrawals among the private sector funds, although none had more than $1 billion in withdrawals.

The average size of withdrawal across the entire superannuation sector was around $7,500.

www.abc.net.au/news/2020-07-07/coronavirus-superannuation-early-withdrawal-scheme-hits-$25b/12429318