The Federal Government has sought to use new Australian Bureau of Statistics (ABS) data to claim vindication with respect to the effectiveness of its hardship superannuation early release scheme.
As reported in Money Management this week, the ABS reported that making mortgage payments and paying household bills were the two main criteria used by people withdrawing their superannuation early.
It reported that as of September 2020, 29% of people who utilised the early access to super scheme used their super to pay off their mortgage while 27% used it to pay household bills.
The Minister for Superannuation, Financial Services and the Digital Economy, Senator Jane Hume said the ABS data showed the Government’s decision to enable temporary early release at the height of the pandemic had proved a lifeline for millions of Australians.
She said the ABS report had highlighted that the early release of super scheme was an overwhelming success.
“The Morrison Government acted decisively in the national interest to support households and businesses and address the significant economic consequences of the COVID-19 – the success of this program proves that it was an effective measure,” Hume said.
“The scheme was a flexible option and more than 3 million Australians weighed up the decision, and decided that withdrawing their super was the best financial decision for them.
“The best way for the Government to help workers rebuild their retirement savings is to do everything we can to help them get back into a job soon. And that’s exactly what we’re focused on.”