Regulator predicts surge in early release of super applications
With the second tranche of the early release of super scheme now open, the prudential regulator expects that a high volume of applications will be made.
Data released by the Australian Prudential Regulation Authority this week indicates that as of 28 June, around 2.5 million applications have been lodged for the early super release scheme since it began.
People had applied for a total amount of $19 billion, with $18.1 billion having been paid out by funds.
In just the week until 28 June, superannuation funds paid out $1.2 billion in payments to 129,000 members.
APRA stated that high volumes of applications are expected for the start of the second trance of the COVID-19 Early Release Scheme in early July.
“This may impact the processing time for payments being made by funds,” the regulator said.
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates. Miranda has also directed SMSF Adviser's print publication for several years.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.