Battlers get more bang for their superannuation buck from the Coalition's co-contribution policy, compared to Labor's unfunded proposals, Minister for Revenue and Assistant Treasurer, Mal Brough, said today.
"Australians recognise they are primarily responsible for increasing their retirement savings. However, the Government understands they want to see good value from the few hard earned extra dollars they can afford to put in," Mr Brough said.
"The Howard Government co-contribution scheme can provide around 10 to 30 times the benefit for low income individuals of Labor's proposals," Mr Brough said.
| Under the Coalition | Under Labor |
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Someone earning $25,000 a year over a 30 year working life: The Government's super co-contribution could add $106,000 to the real superannuation balance. That's an 86% improvement on their projected super balance where only superannuation guarantee contributions are made. * |
Compare that to Labor's two per cent cut to the contributions tax. For the same worker, Labor's policy would add only $3000 to a low income earner's real superannuation balance. |
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Someone earning $36,000 a year over a 30 year working life: The Government's super co-contribution could add $51,000 to the real superannuation balance. That's a 28% improvement on their projected super balance where only superannuation guarantee contributions are made. * |
Labor's policy would only deliver a $4,500 real improvement. |
* Both figures are based on a person who makes the minimum level of member contributions required to receive the maximum government co-contribution
"Labor's proposal is unfunded and provides little benefit to low and middle income earners whose contributions are too small to make a tax cut meaningful."
"The Government's Co-contribution scheme gives battlers some extra incentive to save, provides a bigger boost to their retirement savings, and is better for national saving."
Media Contact: Carlie Hogan - (02) 6277 7360