An extra $17.3 billion poured into Australia's superannuation savings in the June quarter, taking the nation's total superannuation savings to $741.7 billion.
That's a 17.6 per cent increase over the 12 months to June 2005.
Australians put $5 billion of their own money into superannuation – that's over and above the standard contributions provided by employers. The latest figures are detailed in APRA's quarterly superannuation statistics.
"The Australian Government's superannuation co-contribution scheme has been a great help and a real incentive for people to top-up their retirement balances. Eligible low and middle income earners can put $1000 into their superannuation for the year and get up to $1500 from the Government," Federal Assistant Treasurer Mal Brough said today.
"There are now more incentives than ever to invest in superannuation which, for many people, is their second largest asset after the family home."
The Government has introduced a range of initiatives to improve retirement incomes for more Australians, all of which were opposed by the Labor Party. This includes:
Introducing 'super choice'
This gave almost 5 million workers the right to choose their own super fund
for the first time – improving competition, and putting downward pressure
on fees.
Removing the superannuation surcharge
The surcharge was applied to employer contributions made by high income earners.
Removing the surcharge makes it more attractive for Australians to contribute
to their own retirement savings.
Making the co-contribution scheme more generous
The scheme was expanded 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. The maximum co-contribution
was increased from $1000 to $1500 for those earning up to $28,000.
Removing the work test
For the first time every Australian under 65 can contribute to superannuation
whether they are working or not.
The full APRA report can be found at www.apra.gov.au.