Jane Hume (Victoria, Liberal Party, Assistant Minister for Superannuation, Financial Services and Financial Technology) Share this | Link to this | Hansard source

On 23 March this year the Treasurer, Josh Frydenberg, announced the second instalment of the most significant set of measures to support the Australian community and the Australian economy outside of wartime. That day, the Treasurer noted that our country 'confronts an enemy without a flag or a face and we are deploying every weapon in our arsenal to defeat it.' These measures would be proportionate. They would be targeted, scalable and temporary and would be delivered in a timely and cost-effective manner using the existing mechanisms. Allowing Australians financially impacted by the coronavirus to access $10,000 of their superannuation savings was one part of the suite of the Morrison government's key economic responses to the COVID-19 pandemic, and tonight I rise to update the Senate on this successful initiative. As of today, almost two million Australians have applied to access their own money through the early release of superannuation program. On average they have accessed $7,600 and, according to APRA, 96 per cent have received their money within five days of approval from the ATO.

Of course, behind each one of these numbers is a genuine story of financial distress. My office heard from Jasmine, a 30-year-old mother of two from Brisbane and a sales rep with a car company who lost her job because of COVID-19. She was worried about how she would pay her rent and keep a roof over her family's head. Through the early release of super program, Jasmine was able to withdraw $10,000 of her superannuation, and Jasmine told me: 'I couldn't meet my weekly payments. The money was a godsend.'

Twenty-three-year-old Joe from the Sunshine Coast, who worked in tourism, also lost his job when the pandemic restrictions kicked in. Joe withdrew some money from his superannuation to pay off a stifling credit card debt and to pay out his car loan. Joe said: 'I've had zero hours since COVID. This money was a huge relief, and I'm now debt free'. Like so many others, Joe intends to put money back into his super when times are better and when he goes back to work, and we encourage him to do so. Indeed, this government introduced a catch-up contributions scheme to allow for more tax concessional contributions to be made when circumstances allow.

These two stories are just the tip of the iceberg. My office and those of my colleagues, the super funds themselves and, indeed, the media have heard similar tales of relief and gratitude from ordinary Australians in these extraordinary times. Like so many of the policy responses to the coronavirus, the early release initiative required collaboration and cooperation from all participants, and I want to pay tribute to the agencies and particularly to the super funds, who really worked together with a unity of purpose to deliver this program. They stepped up and with one voice said, 'How can we help?'

I also acknowledge the support of those opposite. Indeed, on hearing the Treasurer announce the early release initiative, shadow Treasurer Jim Chalmers said, 'Labor welcomes the package the Treasurer has proposed' and:

This is no time for half-measures. It's no time for dithering or delay.

And we haven't. We have delivered for people like Jasmine, for people like Joe and for the thousands of Australians who through no fault of their own found themselves wading through uncharted waters. This temporary limited tax-free access to their savings has been a financial life raft that, hopefully, will see them safely to shore.

I feel it is too soon indeed to look for silver linings in the cloud of COVID-19, but my sincere hope is that the outcome of this emergency initiative is a new understanding and engagement with superannuation—what's the real trade-off for early withdrawal; how can I make up the difference and catch up on my contributions in the future? Despite 28 years of compulsory super, many Australians have never really considered their super as part of their personal balance sheet before now. I hope that we can continue to build on this new focus and perspective to encourage new engagement with our retirement savings and financial wellbeing.