Early release headed towards $38 billion

With less than a month to go before the Government’s hardship early release superannuation (ERS) comes to an end Australia’s largest industry superannuation fund, AustralianSuper, is about to rack up over $5 billion in early release payments to members. 

What is more, one of the funds hardest hit by the early lockdowns in sport and hospitality, HostPlus, has racked up just over $3 billion as has big retailing fund, REST along with big Queensland-based fund, SunSuper. 

The latest data released by the Australian Prudential Regulation Authority (APRA) suggests that by the time the clock ticks over to the early release scheme cut-off on 31 December, 2020 superannuation funds will have paid out close to $38 billion. 

Importantly for funds such as AustralianSuper, early release outflows of over $5 billion compare to annual inflows of $16.1 billion recorded in 2018-19, meaning that the Government’s scheme has gone close to cleaving a third out of the fund’s inflows. 

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According to the latest APRA data covering the period to the 29 November, the following represent the top 10 most affected funds and their total outflows. 

AustralianSuper  $ 4,902,528,111  

HostPlus  $3,038,654,309  

REST $3,252,371,402  

Sunsuper   $3,587,408,421  

Cbus $2,277,581,740  

HESTA  $1,775,889,145 

BT  $ 1,653,989,418  

MLC$    1,311,097,010 

OnePath$   1,065,225,487 

NM Super$    1,045,102,828  

What that reveals is that the Top 10 funds account for 60% of all early release drawdowns with AustralianSuper and Sunsuper emerging as having been most exposed to second round drawdowns with each recording over $1 billion, while Hostplus appears to have benefited from the opening up of hospitality venues and paying out $912,556,574 in the second round. 

Superannuation fund executives have been bracing themselves for a late surge in early release payments as members seek to accommodate the costs associated with Christmas.