The Australian Council of Trade Unions has slammed the government's early release of superannuation program, saying that Prime Minister Scott Morrison's legacy will be a wave of retirement poverty.
Following the second round of early release withdrawals commencing on 1 July 2020 and the value of applications topping $23 billion, the ACTU is concerned the policy will decimate Australia's super system.
"No one should have to access their superannuation to pay bills or rent. This scheme shows that the Morrison Government has not done enough to support working people and has instead decided to force people to sacrifice their retirements to save the budget bottom line," ACTU assistant secretary Scott Connolly said.
"This scheme is having a disastrous impact on the retirement savings of women and young people, but is being used as a tax minimisation tool by the wealthy."
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He said that the reason 2.5 million Australians have accessed their super to pay bills was because government had not done enough to support workers through the COVID-19 crisis.
"A 25-30 year old who withdraws $20,000 over these two years will be $79,000- $95,000 worse off by retirement," Connolly said.
"The Morrison government seems content to let women, young people and low paid workers rip the heart out of their retirement savings based on their fanatical hatred of a system which provides for millions of people every year."
He added that he thinks this will be the ultimate legacy of Morrison's government.
"The generational hole in retirement savings which will be left by the scheme will be the greatest legacy of this government. It will cause untold hardship for hundreds of thousands of people," Connolly said.
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