Will the Budget deliver an early access third tranche?

24 September 2020
| By Mike |
image
image
expand image

Pausing the superannuation guarantee (SG) charge at its current 9.5% and allowing a third tranche of the superannuation hardship early release scheme have emerged as two possibilities for inclusion in the Federal Budget. 

The two possibilities were canvassed during a web debate between NSW Liberal Senator, Andrew Bragg, and Victoria Labor backbencher, Dr Daniel Mulino, with the question being asked in the context of the Assistant Minister for Superannuation and Financial Services, Senator Jane Hume, having referred to the popularity of the early release scheme. 

Asked his opinion of the early release scheme during the Association of Superannuation Funds of Australia (ASFA) debate, Bragg described it as having been “proportionate and popular” with it having been used in the majority of cases to pay down debt or mortgages. 

However, when asked whether an extension of the scheme was likely to be included in next month’s Federal Budget, Bragg referenced his relatively lowly status as a backbencher. 

However, he said he was open-minded on the question. 

For his part, Mulino said he believed that the Government’s policy approach had been hasty and ill-directed and had resulted in people using their personal superannuation savings to fund something which should have been the responsibility of the Government. 

“In doing so, the Government has taken away the benefit of a lifetime of compound interest – that is a short-sighted approach,” Mulino said. 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

10 months 1 week ago
Kevin Gorman

Super director remuneration ...

10 months 2 weeks ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

10 months 2 weeks ago

The profit-to-member super funds are officially operating as a merged entity, set to serve over half a million members. ...

1 day 19 hours ago

Super Review announced 21 winners at the annual Super Fund of the Year Awards, including the recipient of the prestigious Fund of the Year Award....

2 days 10 hours ago

APRA data shows the CFMEU accounted for 28 per cent of super fund industrial contributions, with the shadow treasurer calling for a prompt investigation into the payments...

3 days 14 hours ago