Newspaper icon
The latest issue of Financial Standard now available as an e-newspaper
READ NOW
Queenslanders drain super: ISA

Industry Super Australia (ISA) claims 27% of Queenslanders with a super account have accessed the Early Release of Super (ERS) scheme; the highest proportion in the nation.

ISA said over 145,000 Queenslanders have wiped out their retirement savings all together, with the association pushing for the legislated super rate increase.

"If the government backflips on its legislated promise to lift the super rate to 12%, billions more will be drained from Queenslanders' retirement - a bill they cannot afford," ISA said.

ISA estimates Brisbane's average payment was $7659 with 8693 individuals emptied their balance, while Griffith's average payment was $7754 with 7469 accounts wiped out and in Moncrieff, an average of $7829 was withdrawn and 6408 people hollowed out their accounts.

"To help fix the hole early release has blasted into the retirement savings of hundreds of thousands of Queenslanders the government must stick to its legislated promise to lift the super rate to 12%," ISA said.

The super rate is legislated to rise from 9.5% to 12% by 2025, with the first 0.5% increase to occur in the middle of next year.

"But a noisy mob of Coalition backbench MPs want to take workers' increases away," ISA said.

"Ditching the increase would have a dire impact on the savings of those who have accessed early release - especially the 145,000 Queenslanders who have wiped out their super and will need to start again."

ISA chief executive Bernie Dean said the numbers from Queensland are concerning and described the 145,000 wiping out their super as a "tragedy waiting to happen" for the state.

"The only way to repair the retirement savings of Queenslanders is to lift the super rate," Dean said.

"It is critical to helping rebuild savings wiped out and to avoid tax hikes on working people to prop up more people drawing a full pension."

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

Read more: ERSISAEarly Release of SuperIndustry Super AustraliaBernie Dean
Link to something 0eUOPEVD