Australians will be forced to pay tens of billions more in taxes and have lower investment returns if the government extends the early release of super scheme in the 2020 federal Budget.
Industry Super Australia would not support a third round of the existing early release of super scheme due to its poor targeting and the huge long-term costs of the scheme on the individual and the taxpayer.
Those who access the scheme are tens of thousands worse off in retirement and will likely become more reliant on the aged pension. ISA research shows the scheme has added tens of billions more to the aged pension, heaping pressure on future governments to hike taxes or cut the pension.
And a UMR poll revealed 70% of Australians want the early release scheme to come to an end as the economy begins its recovery.
While the scheme helped get funds to people who needed them during the crisis, the limited checking of applications signals many in Canberra also viewed the scheme as a useful economic stimulus.