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ERS sees 300,000 repeat applications

Around 300,000 Australians lodged their second application to access their super early at the start of the new financial year.

APRA had previously warned it was expecting a high volume of applications as the second tranche opened.

In total, over $19 billion has been removed from super since the ERS scheme opened with over 2.7 million applications received.

The total value of applications has topped $23 billion, however at the time of APRA releasing the data only $19.1 billion has been paid.

Super funds continue to keep up with the five working day time frame set up by APRA with funds making payments within that limit 95% of the time.

APRA said those waiting for payments should be patient as the high volume of applications may delay some funds.

"High volumes of applications are expected for the start of the second tranche of the COVID-19 Early Release Scheme in early July," APRA said.

"This may impact the processing time for payments being made by funds."

The reason for the influx is due to the reporting week covered the week from June 29 to  July 5.

It included the end of the period for which members could apply for up to $10,000 for the 2019/20 financial year and the start of the period for which members could apply for up to $10,000 for the 2020/21 financial year.

"The 511,000 applications received by funds during the week from 29 June to 5 July includes a mix of applications received in both the 2019/20 and 2020/21 financial years," APRA said.

"It is a significant increase in applications compared to the week of 22 June to 28 June, where 127,000 applications were received by funds, reflecting the start of repeat applications in the 2020/21 financial year."

The regulator said the 511,000 applications received is lower than the 665,000 applications received during the first week of the early release scheme (April 20 to April 27).

"Out of the 511,000 applications received, 165,000 were for members applying for early release for the first time and 346,000 were for members applying for the second time," APRA said.

"The average amount applied for by those making a repeat application was $8904."

There are concerns that those making a repeat application have now depleted their retirement savings completely, which is why the average is below the $10,000 allowed.

The 165,000 initial applications brings the total number of initial applications to 2.7 million since inception of the scheme.

APRA reported that as at 5 July 2020, 83% of applications received since inception had been paid.  This is down from 95% at 28 June 2020 given the large number of new applications received during the week.

Read our full COVID-19 news coverage and analysis here.

Read more: APRAERSEarly Release SchemeCOVID-19
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