New directions from the Australian Tax Office (ATO) regarding administration of the Federal Government’s Early Release of Superannuation (ERS) scheme will streamline the approval process and make it easier for Super Funds and members to navigate.
Hostplus Chief Executive David Elia said the ERS scheme was well intentioned and would assist members who had lost jobs and found themselves in financial difficulties.
“We support the Federal Government’s policy to allow members to access up to $20,000 from their superannuation accounts over the course of this year to assist them through the current crisis,” Mr Elia said.
“Hostplus stands ready to do our part during these challenging times for working Australians to make sure they have access to funds to meet daily costs for themselves and their families.”
“We have ample liquidity available to support members undergoing financial hardship.”
Mr Elia said applications for access to the first $10,000 under the ERS scheme can be made direct to the ATO from 20 April, 2020 and funds would begin flowing to members’ bank accounts shortly afterwards.
“We want to reassure Hostplus members that we will work to make sure those wishing to access money from their superannuation accounts can do so easily and in a timely fashion.”
“However, we recommend that members carefully consider the long-term impact on their superannuation savings before seeking to withdraw cash from their super accounts.”
“Withdrawing $20,000 from a superannuation account now will substantially reduce members’ final balance on retirement.”
Mr Elia said the Federal Government’s latest stimulus subsidy, expected to be released today, for workers who have been stood down or retrenched may be a better option than members utilising funds from their super.