"The Howard Government is delivering on its commitment to secure Australians' retirement incomes," The Minister for Revenue and Assistant Treasurer, Mal Brough, said today.
'Over recent years the Government has announced a range of initiatives which significantly improve superannuation as a retirement savings vehicle', Mr Brough said.
These initiatives include:
- The establishment of the superannuation co-contribution scheme in 2003, where the Government matched the personal superannuation contributions made by qualifying low income earners.
- Expanding the co-contribution scheme in 2004 to include employees earning up to $58,000 so that personal superannuation contributions made in the 2004/05 and later income years would be matched at $1.50 for every $1 contributed, increasing the maximum co-contribution from $1000 to $1500 for those earning up to $28,000.
- From 1 July 2002, increasing the limit on full deductibility of superannuation contributions by self employed persons from $3,000 to $5,000.
- Introducing capital gains tax relief for small business owners where the proceeds of the sale of a small business are used for retirement income purposes.
- Removing the work test for superannuation for people under age 65, allowing them to contribute to a superannuation fund whether they work or not.
- Introducing the transition to work initiative, to give more options to older Australians who want to stay connected to the workforce, and
- Abolishing the superannuation surcharge from 1 July 2005.
'These initiatives put in place appropriate arrangements to help Australians achieve the income in retirement they want to have, rather than the retirement income they would otherwise have', Mr Brough said today.