Superannuation withdrawals spent on gambling, alcohol, takeaway food: report

Emergency access to superannuation during the COVID-19 shock has triggered a spending spree for some Australians, who are splashing cash on gambling, alcohol and takeaway food rather than essential household items. Key points: The average person who withdrew super spent $3,000 more in a fortnight than they normally would Around 14pc of that spending went to debt repayments, while an average 11pc was gambled The Treasurer says "this is their money" which will be used "for a range of purposes" Real-time bank transaction data crunched by the advisory firms Alpha Beta and Illion shows that many people dipping into their retirement nest eggs have increased spending on lifestyle items, rather than using the cash as a lifeline. A sample of 13,000 people who accessed their super under the early release scheme shows 64 per cent of spending went on discretionary items such as clothing, furniture, restaurant food, gambling and alcohol. The two most common spending increases were debt repayments — 14 per cent of the extra spending was used to repay personal debts, including credit cards, buy now pay later bills and other bills — and gambling, which gobbled up an average of $327 of the $2,855 in additional spending. Stay up-to-date on the coronavirus outbreak Download the ABC News app and subscribe to our range of news alerts for the latest on how the pandemic is impacting the world Projections by PWC show that returning the federal budget to surplus could take an additional 19 years without comprehensive tax reform, with the return to zero debt delayed to 2056-57 because of ballooning deficits.