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Summary
- Australians in financial distress have a few days left to apply for super early release scheme.
- Over 3 million Australian have taken cash payments from their super providers since the inception of the scheme.
Superannuation early release scheme is set to end on 31 December 2020. The scheme was introduced in March after job losses soared in the wake of nationwide lockdown.
Australians who were left financially-impaired, approached their super providers for the early release of payments.
The scheme was designed to allow withdrawal of up to $10,000 from the super accounts across two financial years. The first part of the scheme closed on 30 June 2020, and the second part is set to expire on 31 December 2020.
Image Source © Kalkine Group 2020
Applicants who are seeking access to payments before the deadline would be paid in January. The second part of the scheme was due to expire in September previously, but the Government extended it to 31 December 2020.
Superannuation providers have been doing a great job in releasing payments for the persons in financial hardship.
According to APRA, since its inception the scheme had paid $35.8 billion till 13 December 2020. During the period, there are around 3.4 million Australians who withdrew superannuation with an average payment of $7,400.
1.4 million Australians have taken the scheme twice with an average payment of $8,290. The super industry took an average 3.3 business days to process the payments, and the majority of applicants were paid within five business days.
The scheme has probably allowed people to pay off their debt burden in the wake of an unemployment crisis. It may have also ensured that Australians continue to spend on necessary items.
Image Source © Kalkine Group 2020
Eligible people can submit their applications for the release of payments before 31 December 2020. In the early days, the super industry was critical of the super scheme, which forced them to release cash payments.
