Second super raid tallied
The second raid on super accounts has seen Australians pull out nearly $30 billion from their own futures.
Banking regulator APRA says 2.7 million accounts have been drawn down since the COVID-19 pandemic struck.
Opposition spokesman for financial services Stephen Jones says one super fund saw nearly 50,000 early withdrawal applications in a single day.
“I think we've had a significant run, well in excess of [the $29 billion] the Government anticipated,” Mr Jones said.
“I think we'll blow that easily. Many people are estimating it'll head closer to $40 billion, I think that's accurate.
“That's of great concern.”
Assistant Minister for Superannuation and Financial Services Jane Hume says the ATO says the withdrawals so far are only a fraction of the roughly $3 trillion Australian superannuation pool.
She described Mr Jones' claim of a “run” on superannuation accounts “irresponsible”.
“In fact, it's incredibly disappointing that in a time of financial crisis that sort of intemperate language is used,” Ms Hume responded.
“It's akin to falsely shouting fire in the cinema and I think Australia should expect more of their elected representatives and Stephen Jones should know better.”
Equity Economics' lead economist Angela Jackson says the reduction in super may affect the Government's economic plans.
“In terms of the reserves of the super funds, obviously they're not going to be tapping into long-term investments at this point,”she said.
“They're going to be tapping into cash reserves and short-term investments, money that would have been available to make those long-term investments that involve, generally, partnering with the Government on big infrastructure projects.
“They won't have those funds, or as much available, over the next period.”
The Government says its infrastructure plans will not be affected.