ACTU accuses Govt over early release super

16 July 2020

The Australian Council of Trade Unions (ACTU) has defended its estimates of what the Government’s hardship early access to superannuation will ultimately cost fund members in the face of suggestions by the Liberal Party chairman of a Parliamentary Committee that the ACTU data should be investigated by the Australian Securities and Investments Commission.

What is more, the ACTU has accused the Government of forcing people to access their superannuation to help save the Budget bottom line at the same time as suggesting the chairman of the Parliamentary Joint Committee on Corporations and Financial Services, Senator James Paterson and other members of the Government back-bench of being philosophically opposed to Australia’s superannuation regime.

In doing so, ACTU assistant secretary, Scott Connolly said that no one should have to access their superannuation to pay bills or rent.

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“This scheme shows that the Morrison Government has not done enough to support working people and has instead decided to force people to sacrifice their retirements to save the budget bottom line,” he said. “This scheme is having a disastrous impact on the retirement savings of women and young people, but is being used as a tax minimisation tool by the wealthy.”

Connolly said 2.5 million workers had raided their super to pay the bills “because the Morrison Government has not done enough to support them during this crisis”.

“Almost 500,000 have emptied their accounts,” he said. “A 25-30 year old who withdraws $20,000 over these two years will be $79,000 - $95,000 worse off by retirement.”

This figure was later questioned by Senator Paterson and referred to ASIC.

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Dear ACTU, do know what that 25-30 year old who withdrew $20,000 over these two years and will be $79,000 - $95,000 worse off by retirement really needs? A financial planner! But your hatred of them has made it increasingly unlikely that they will reach out for professional help.

Wait a minute. I thought the union funds didn't have a problem funding the early super withdrawals. Are we to assume that the second wave of withdrawals will see a few run into the liquidity problems everyone predicted. Have bigger union funds stops giving liquidity to smaller union funds? Maybe they will need to revalue their unlisted assets again, like they did on the 29th June, to make their returns look higher so they can chase more inflows and continue their Ponzi scheme.

Maybe the ACTU should conduct large survey of Industry Super members who withdrew their funds and ask them to qualify exactly what they used the withdrawn funds for.
There are some that would have paid a lump sum off their mortgage as an insurance policy for potentially harder times and their are some that would have bought mag wheels for a broken down car and blown a heap at Dan Murphy's .
If the members had accessed superannuation and donated a portion to the ACTU, would Scott Connolly be whinging.??

They have been donating a portion of their super to the union movement since the day they joined the fund. Most members just didn't realise it.

And there it is laid bear for all to see. Money is power and the unions know it. When was the last time a union slogan was join up because of what we can do for you - no it's all Superannuation Fund advertising. I'm guessing the loss of funds might mean a reduction in Labour funding/donations?? Stop whinging Scott Connolly, get out and help your members and be grateful that your industry has been carved out to be allowed to continue working in this supposed shut down.

Dear ACTU, wait until you made redundant, and you still need to pay all your rent and bills. I can guarantee that you will do the same thing. Super is their own money and everyone has the right to use their money for whatever needed, especially in this climate. Please be a human!

Unions giving financial advice? Never. For some people paying off debt with a superannuation withdrawal makes a lot of sense. Guaranteed interest cost savings, ability then to reduce loan repayments if necessary. Yes, they make have less in superannuation at retirement, but not necessarily so. Who knows what investment performance will look like in an ongoing COVID19 world. Paying off the card or home loan may be the best option for many.

Retailers are concerned that the super early access will cease! Perhaps people (say in Melbourne) who are fully unemployed due to Covid19, should be able to take out a second $10,000 amount this financial year, if necessary (ie $20,000 for 2020-21). But perhaps any more for members with only a 20% reduction in income. This should result in a lower amount of being funds withdrawn, than previously.

However when you look at the impact of the retail stimulus of the early access release, it makes one wonder what is the ongoing economic impact of continually draining the economy by 9.5% pa year after year, decade after decade? Hence the Grattan Institute is correct, that a good case can be made for low income earners should be able to use their super to pay off their home over time.

And the outburst by the ACTU about early access is simply whinging from an organisation with a massive vested interest. So the ACTU coffers will get slightly lower financial benefit from their supporting super funds. Cry me a river.

The Union based super funds here are very lucky they aren't in the USA, where the recent CARES Act allows individual fund members to withdraw up to A$143,000 from their fund by Dec 2020, due to Covid-employment related conditions.

I'm surprised they aren't forcing their members who have withdrawn super monies to meet a union rep in a car park with a brown paper bag just like the good old days.
The unions are about control.
Control of peoples thinking and control of peoples money.
That's why superannuation is such a big deal for them and when the balances start tumbling, the treasure chest is losing value.
Just look at Cbus appointing the CFMEU to oversee employer super contributions for members !!
That's like putting Mike Tyson in charge.
The CFMEU are renowned for their diplomacy and mediation skills......intimidation, stand over and then a smack in the chops.
Union membership percentages have plummeted over recent years and they are desperately trying to remain relevant.

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