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New data shows that nearly a third of those who applied for early access to their superannuation as a result of COVID-induced financial hardship used the money to pay their mortgages, rent and other household bills.
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Early access to super used to pay mortgages, credit cards, bills
22 April 2021
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The Australian Bureau of Statistics (ABS) on Wednesday released its latest Household Financial Resources report which shows 29 per cent of those who applied for early access to their superannuation used it to pay their mortgage or rent, while 27 per cent used it for household bills.
Meanwhile, 15 per cent used their super to pay off credit cards and other personal loans, while around one in eight, or about 13 per cent, of those who withdrew their super early, added it to their savings.
“We found that for people who accessed the scheme twice, the average total amount withdrawn was $17,441,” said Dean Adams, director of Household Economic Resource Surveys at the ABS. “The average single withdrawal was $7,728 for the first opportunity, and $7,536 for the second.”
The government’s COVID-19 early access to superannuation scheme allowed taxpayers suffering financial hardship to withdraw up to $20,000 over two transactions, across two financial years, once before 30 Jun, 2020 and once after. The program closed at the end of last year.
According to the report, the average private household income — including salaries, investments and superannuation — remained stable year-on-year at $2,117 per week in September 2020.
“Around one in five households, 19 per cent, had someone receiving the JobKeeper payment through their employer, or in their own business,” Mr Adams said.
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“Half of these households owned their dwelling with a mortgage, while almost half, 47 per cent, were couple families with dependent children.”
The ABS has made JobKeeper estimates where it was known to the employee that either their employer, or their own business, was receiving the JobKeeper wage subsidy which, in September last year, was $1,500 per week.
“Average government payments rose by $89 per week per household, compared to the previous September quarter, to $300 per week,” he said.
“Over 1.3 million households contained someone receiving the coronavirus Supplement of $550 per fortnight.”
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