To help Australians through the lockdown and flatten the curve of the recession, the Morrison government has allowed people to access their superannuation early. This means those suffering “extreme economic hardship” are allowed to withdraw up to $20,000 of their retirement savings.
By August, over three million Australians had taken advantage of the scheme, withdrawing on average about $8,000 each. But many double dipped, taking out more than the maximum $10,000 per financial year.
To date, the scheme has cost Australians over $30 billion in retirement savings. It’s blown past Treasury’s anticipated $29 billion, and is still growing. Yet the government extended the program to the end of the year, by which time it’s predicted to have wiped out over $42 billion from the nest eggs of the poorest Australians.
