Predictions say that more than half a million Australians have “completely cleaned out” their superannuation savings by utilising the early-access scheme.

The Treasury’s initial estimate was that $29.5 billion would be accessed. That figure has now been revised to $42 billion.

Treasurer Josh Frydenberg said that 60% of those who have accessed the scheme have used it to meet essential expenses, while another 36% added the money to their savings.

Chairman of Industry Super Australia Greg Combet has acknowledged that the scheme has helped many who are struggling financially. But he did warn that any attempt by the Government to extend the scheme beyond December 31st would be fiercely resisted.

Mr. Combet says that approximately 560,000 Australians have emptied their supers, and 460,000 of those are under the age of 35.

Proponents of the scheme have argued that it is the worker’s money, and they should be able to use it how they like.

Mr Combet argues that superannuation savings are given favourable tax treatment because they are designed to be preserved until retirement, and so shouldn’t be used in any other way. He also argues that people accessing their super early is creating long-term problems for themselves and the community, as it pushes people back on the pension and increases the tax burden that we all must bear.

The early-access scheme has been a lifeline; but now we need a lifeline for those who are struggling financially which won’t also jeopardise their future.