Around 2.5 million Australians have already withdrawn their superannuation under the early release scheme and the same number is expected to request additional access in round two, according to a report by the Association of Superannuation Funds of Australia (ASFA).

ASFA CEO Dr Martin Fahy said the early release scheme has highlighted the significant role superannuation plays.

"Superannuation has played a key role in helping Australians during the COVID-19 pandemic. Without superannuation, the great bulk of Australian workers would not have any significant financial assets they could draw upon in times of economic adversity," Mr Fahy said.

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Provider

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High Interest Savings Account (< $250k)

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  • $0 monthly account fee
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Home Saver

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No monthly fees
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No monthly fees

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  • Deposit $200 per month to activate bonus interest
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  • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking

Savings Account (Amounts < $250k)

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HomeME Savings Account ($0 - $100,000)

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    Growth Saver ($1 - $25k)

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      For customers aged 14-35 years
      For customers aged 14-35 years

      Future Saver Account ( < $50k)

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        • Maximum Age - 24

        Goal Saver

        • Maximum Age - 24
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        Boost Saver

          00.011$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

          Reward Saver Account (31 years +) ($0-$100k)

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            Bonus Saver Account (Amounts < $100k)

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              Reward Saver Kick Start (Amounts ≤ $1m)

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                Life (< 30 years) (Monthly deposit)

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                    ANZ Save

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                      Savings Maximiser (<$100k)

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                        Young Saver Account

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                          Save up

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                            Saver Account (<$250k)

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                            Bonus Saver (<$1 Million)

                              Important Information and Comparison Rate Warning

                              All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of March 28, 2024. View disclaimer.

                              In fact, the ASFA report found the maximum of $20,000 made available through the early release scheme exceeds the total maximum payments per employee under the Federal Government's JobKeeper stimulus payment of $19,500 - and is available sooner. 

                              Mr Fahy said the demand for the scheme highlights the need for the superannuation guarantee to be raised. 

                              "The erosion of retirement balances through early release reinforces the need to move as soon as possible to a Superannuation Guarantee rate of 12% in order to provide adequate retirement savings for individuals and to provide financial security for individuals in times of extreme financial need," Mr Fahy said. 

                              Under the early release scheme, people who have been made redundant or had their working hours reduced by more than 20% as a result of COVID-19 will be eligible to access up to $10,000 of their superannuation in the financial year 2019-20.

                              Eligible applicants will be able to withdraw a further $10,000 from Wednesday.

                              According to ASFA's report, over 15% of the workforce and over 10% of those with a superannuation account are expected to receive early release payments from their superannuation.

                              The report also found that Australians aged under 35 have accessed the scheme more than any other age group.

                              "Applications are continuing to flow to the ATO at a substantial rate, currently around 150,000 applications a week," ASFA said.

                              "However, this is well down on the nearly 700,000 applications made in the first week. Based on the current flow of applications, the total number made before 30 June might be in the order of 2.5 million, which would equate to total payments of around $18 billion for this financial year."

                              Concerns have been raised that some Australians are wrongly withdrawing their money from super early, despite not being financially impacted by the coronavirus.

                              The Australian Taxation Office (ATO) has warned that those who have wrongly raided their super to take advantage of a tax benefit loophole could be investigated and heavily penalised. 

                              Disclaimers

                              Savings.com.au does not provide tax advice. This material has been prepared by Savings.com.au and is for informational purposes only, and is not intended to provide, and should not be relied on for tax advice.

                              For tax advice relevant to you, visit the ATO or consult an independent tax advisor.