The Minister for Revenue and Assistant Treasurer, Senator Coonan, today announced that through the 2002-03 Budget the Government has given effect to its superannuation election commitment to allow parents, grandparents, other relations and friends to make superannuation contributions on behalf of a child. This initiative will commence on 1 July 2002.
Superannuation should be seen as a lifetime savings strategy for all Australians from the earliest age possible. Contributions made on behalf of a child will help them achieve financial self reliance given the number of years of investment prior to their retirement. Superannuation for life will help create a culture that gives priority to planning ahead and achieving financial self-reliance.
After consultations with industry representatives, the Government has decided to change the contribution limit from the $1,000 per annum announced in A Better Superannuation System. The changed contribution limit of $3,000 per child per 3 year period will provide greater flexibility for persons making contributions on behalf of a child and should increase the range of superannuation funds that will accept these contributions.