The superannuation withdrawal period ended on January 1, after around 3 million Australians accessed their retirement savings. According to the ATO, a total of $36 billion has been taken out, following initial estimates of $29.5 billion prior to the programme’s extension.
There had been some confusion surrounding eligibility for the programme. The ATO has since stated that those who applied knowing that they were not eligible will be subject to an income tax penalty, while solutions will be found to help resolve unintentional application errors.
The political aspects of superannuation are expected to attract tension this year, with proposed legislation in place such as the Government’s “Your Future, Your Super”, along with the Superannuation Guarantee (SG) revision. Several Coalition backbenchers have pressured Prime Minister Morrison to resist the push to increase SG rates.
The Your Future, Your Super legislation would attach first-time employees to the same super fund for the rest of their lives, but the ATO will monitor and provide a selectable funds list for new employees to choose from.
The Australian Prudential Regulation Authority (APRA) plans to conduct yearly reviews of the Government’s Your Future, Your Super legislation, with performance measured from July 2021.
As with other proposed initiatives related to social safety nets, controversy surrounding the aforementioned legislation is unlikely to be resolved anytime soon. Debates have erupted around the world regarding the proper response to the pandemic, and while Australia’s infection rates have remained low relative to that of other nations, the economic effects of the pandemic and lockdown periods will continue to shape the direction of the country for much of 2021.