Treasury underestimates early super by $15bn

 

The government now expects around $42 billion to be removed from the super system as a result of the early release scheme, having revised up its initial estimates of $27 billion at the start of the scheme.

 

 

Treasury division head of retirement income policy Robert Jeremenko told the Senate committee on COVID-19 on Thursday that the government was now expecting $41.9 billion to be removed from the super system following the extension of the scheme to December and taking into account “lived experience” of the pandemic which indicated consumers had taken up the scheme in higher numbers than expected.

“The early access measure was developed in early March and I don’t think anyone in Australia would have been able to predict what the impact of the pandemic was,” Mr Jeremenko said.

“What we had to do was use our best estimate, but the actual lived experience of those first three months up to 30 June was actually that we had $20.1 billion removed. So, what we did was, given the extra three months of actual numbers, assumed a certain take-up for the remaining three months plus the extension.”
Mr Jeremenko said as at 28 July, $31.9 billion had been withdrawn from super.

He added that the Treasury could revise up the expected withdrawal numbers further depending on how many more consumers accessed the scheme.


“This six months we are in now, they are estimates. They are best estimates, but we will revise as we have done when we see actual numbers coming through and that will give us a real feel of the level of uptake,” he said.

 

 

Sarah Kendell
30 July 2020
smsfadviser.com

 

 

Any advice contained in this website is of a general nature only and does not take into account your circumstances or needs. You must decide if this information is suitable to your personal situation or seek advice.

Rolanda has been my financial adviser for 20 years. I have always found her to be highly intelligent, knowledgeable and professional in her career. Rolanda is accessible at all times and patiently explains terms that I do not fully understand. I can highly recommend Rolanda and it is a pleasure to do so. I do this with the utmost confidence. Marcia Montgomery (Retiree – home duties and ex-clerk with Water Board)
I retired Oct 2012, and seeking Financial Advice for my retirement funds, I decided to have Rolanda look after my financial affairs, and so happy I did. Since my retirement I am extremely comfortable with Rolanda’s advice, experience and strategies and the returns on my investments. Rolanda is my "Breath of Fresh Air" at this stage of my life and she makes herself available 24/7 should you need to talk with her. Steve Hoad (Ground Engineer, Qantas)
In 1997 I left Energy Australia and decided to join Rolanda Adams Financial Services for the financial support and advice that I would need into the future. That decision has proved a very good one and I am still with Rolanda who has given me advice and friendship over those many years. The advice given has ensured that my investments have been protected and the major losses, of some, during the GFC was not felt by me unduly. Rolanda and her team are very easy to contact at any time and one is always received in a most professional manner. I would be most happy to recommend Rolanda Adams Financial Services to all who need financial services. Graham Fleeton (Manager, Property Insurance Group Energy Australia (Ausgrid))
Rolanda has been my Adviser for the past 18 years. Through her wide industry experience and professional expertise she has ensured the sound development and ongoing management of my investments. Her advice has invariably been sound, timely and entirely tuned to meet my personal needs in retirement. She has a friendly, engaging manner and is always readily available to address any of my concerns. I have no hesitation in recommending her. Neil O'Keeffe (Chief Inspector (retired), Australian Customs Service)

© 2021 Rolanda Adams Financial Services Pty Ltd. All rights reserved. Site by PlannerWeb.