No third tranche of early release

There will not be a third tranche of the early release of superannuation scheme, the Assistant Minister for Superannuation, Financial Services and Financial Technology, Jane Hume has confirmed.

In an online briefing hosted by the Financial Services Council (FSC), Hume said the first extension of the COVID-19 hardship scheme was “proportionate” and was “limited but powerful”.

“We said early on that this was a temporary package in response to the pandemic. Not something we wanted to set up as a permanent proposition,” she said.

“The vast majority of calls to my office [in Richmond, Victoria] was about extending the early release of super scheme and it breaks my heart to say no we’re not doing that.”

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Given Tuesday’s Budget did not include the superannuation guarantee increase, super for housing, or more early release tranches Hume was asked whether this would bring an end to criticism that the Government was ideological on super.

Hume said the “accusation that the Government is ideological on super always blows me away”.

“Productivity commission said super had served Australians well but it’s not efficient, not compulsory, and because government compels people to quarantine nearly $1.10 on nearly everything they earn we have a responsibility to make it is an efficient system. This ideological accusation I find frustrating.

“…we’re not about dismantling the system here, every time I open my mouth everyone in the industry loses their minds.

“We’re here to improve the system so that it better serves all Australians because there are 16 million out there that rely on it being a good quality, high performing system.”