Banks get debtors’ super

The early release of superannuation to meet pressing household payments increased by 22 per cent over the year to June 2008, the Financial Review reported. The AFR obtained the data from the Australian Prudential Regulation Authority under the Freedom of Information Act. APRA released $165 million from super to 14,000 households. The average payment under early release was $11,763. The number of applications for early release increased 17 per cent to 19,300.The APRA data does not include the early release of super for those on income support, such as unemployment and disability benefits, the AFR reported. It isn’t clear what percentage of these early super payments may have gone into debt reduction and what went to meet medical and basic household expenses. Most banks will provide notices of default on request to home loan customers who ask for them, and tailored to comply with the requirements of APRA to approve the early release of super.

Source: Financial Review/The Sheet