Minister for Revenue and Assistant Treasurer
26 November 2001 - 17 July 2004
14 March 2004
MATCHED SUPER EXTENDED TO ONE MILLION MORE AUSTRALIANS
Up to one million more Australians will be eligible to receive a direct injection into their retirement savings following the extension of the Government’s superannuation co-contribution measure, Minister for Revenue and Assistant Treasurer, Senator Helen Coonan announced today.
“Whether it’s change from the shopping or skipping a cup of coffee a day, if you earn less than $27,500 a year and contribute to your super then the Government will match your contribution – dollar for dollar – up to $1000 a year,” Senator Coonan said.
Eligible people earning up to $40,000 who make personal superannuation contributions also qualify for the Government’s co-contribution.
The Government has already committed $920 million over four years to the super co-contribution and will now widen the eligibility criteria to include people who earn less than $450 a month and aren’t eligible for superannuation contributions from their employer.
“This means around one million extra people will be eligible for the super co-contribution,” Senator Coonan said.
“While not all of these people may choose to take up this opportunity it’s important that there are incentives for people to save for their retirement.
“Whether you’re a young person with a casual job, work part-time or full-time, in the city or in rural and regional Australia – the super co-contribution will help you save for retirement.
“This is a good opportunity for those who would have previously missed out to take advantage of the Government’s matched contribution to super.”
For example, if you earn $32,000 a year and make personal super contributions of $1000 during that year, the Government will pay $640 directly into your super account.
If you earn less than $27,500 and contribute any amount up to $1000 into your super fund then the Government will match it dollar for dollar up to $1000 a year.
“Every dollar helps to boost retirement savings even if it is $10, $20 or $100 over the course of the year, the Government will give your super savings a helping hand,” Senator Coonan said.
“Having enough superannuation is vital to being able to live comfortably in retirement, especially in an age where people are living longer. I urge all eligible people to look into taking up the super co-contribution.”
The super co-contribution applies to any personal superannuation contributions made from 1 July 2003. It is calculated after the end of each financial year for individuals who have made personal super contributions and meet the eligibility requirements.
For more information visit the ATO website at www.ato.gov.au/super or call the Tax Office’s Superannuation Infoline on 13 10 20.
The Government will introduce legislation to give effect to this decision as soon as possible.
The television advertising campaign for the super co-contribution commences tonight.