6 September 2005

$309 Million Win for Low to Middle Income Earners

The Government has paid out $309 million to the superannuation accounts of low to middle income earners so far under the generous superannuation co-contribution scheme.

"This is a major injection to the retirement savings of 571,000 hard-working Australians. It means more money accruing interest in the superannuation accounts of low to middle income workers and healthier retirement balances for more Australians," Federal Assistant Treasurer Mal Brough said today.

Women continued to embrace the scheme in greater numbers than their male counterparts, representing 63% of total co-contribution recipients.

"It's encouraging to see so many Australians becoming more aware of superannuation and how to make the most of their savings through Howard Government incentives such as the co-contribution scheme."

Since 1996, the Howard Government has created 1.7 million jobs. That means more Australians earning money and contributing to superannuation.

"We should never forget that one of the best things we can do for retirement savings in this country is to give people a job and, in doing that, the capacity to accumulate their own superannuation savings," Mr Brough said.

The superannuation co-contribution scheme is now even more generous. In the current financial year eligible personal superannuation contributions will be matched at $1.50 for every $1 contributed up to a maximum co-contribution of $1,500 for those on incomes up to $28,000. The maximum co-contribution phases out at an increased upper threshold of $58,000 (up from $40,000).