Minister for Revenue and the Assistant Treasurer
27 January 2006 - 3 December 2007
Monday, 23 July 2007
$3 Billion In Super Co-Contribution Payments Go Straight To Australian Workers
The Howard Government has contributed over $3 billion into the superannuation accounts of Australians over the first three years of the Government’s Super Co-contribution scheme, Minister for Revenue and Assistant Treasurer, Peter Dutton, announced today.
“This excellent result has been made possible by the Government’s doubling of Super Co‑contribution entitlements for the 2005-06 financial year, as announced in the 2007 Budget,” Mr Dutton said.
“People whose superannuation funds have received this extra co-contribution will be informed over the coming weeks. To date extra payments totalling $917 million have been made for 1.13 million people who made personal super contributions during 2005-06.”
Under the superannuation co-contribution scheme the Government contributes $1.50 for every $1 of after-tax superannuation contributions made by employees earning up to $28,980, up to a maximum co-contribution of $1500 per year. The co-contribution phases out completely for employees earning more than $58,980.
To reward people for preparing for their own future, the Howard Government will pay an additional one-off sum to double the co-contribution in respect of the 2005-06 year.
This means an eligible person who contributed $1,000 will receive a co-contribution of $3,000 from the Government for that year.
Mr Dutton said was important for Australians to realise that these improvements to superannuation returns didn’t just ‘happen’. They have come as the result of strong economic management by the Howard Government.
The Tax Office will make further payments as people continue to lodge their 2005/06 tax returns and their co-contribution is calculated.
Media Contact: Brad Emery (02) 6277 7360 or 0414 225 638