The Morrison government is defending the scheme,announced as part of its response to the coronavirus pandemic,which enables people to withdraw up to $20,000 from their super if they are in financial hardship. People could withdraw $10,000 before July 1 and another $10,000 in the first half of the new financial year.
The Australian Tax Office this week revealed that despite more than 3 million applications,it has not checked any to see if they meet financial hardship guidelines such as the loss of a job. The government originally expected 1.5 million people to withdraw $27 billion but now believes up to 4 million will take out $42 billion.
Data released by the Tax Office on Friday shows between April and July 1,the average withdrawal was $8210. The lowest average was among people under the age of 20 at just $2813,while the highest was for those aged in their early 50s at $9399.
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Since July 1,the overall average has climbed to $8708,with 183,000 people who did not access the scheme earlier now tapping into their super. Those aged between 26 and 30 were the most likely to make their first withdrawal.
The average withdrawal by people in their late 20s has jumped by 11 per cent to $8130 while among those in their early 30s the average has climbed by 4.5 per cent to $8872.
Between July 1 and July 26,the ATO received more than 1.3 million applications worth $11.5 billion.