Senator Nick Sherry, Minister for Superannuation and Corporate Law, has announced that the Federal Government added $205 million more in superannuation co-contributions to the super funds of eligible individuals in 2007-08, compared with the previous year.
During 2007-08, 1.4 million Australians benefited from the superannuation co-contribution, up 192,134 on the previous year, and adding $1.3 billion to retirement savings.
"The earlier you start saving, even by making smaller voluntary contributions, the easier it is to reach your retirement savings goals over the long-term," said Minister Sherry.
"To that end, the Government is working to enable individuals to receive a personalised projection with their periodic superannuation fund statement, detailing what their current superannuation balance could be worth in retirement and what annual income it may provide."
The superannuation co-contribution is a Government payment that fully or partly matches superannuation contributions made by eligible individuals on incomes of up to $60,342 for the 2008-09. Those on $30,342 or less are eligible to receive the maximum co-contribution of $1.50 for every $1 contributed to super up to $1,000. The maximum co-contribution is $1,500.
"The Government is also delivering on its election commitment with $16 million to set up a superannuation clearing house to cut red-tape for small businesses and help Australian workers get the super fund they choose", Minister Sherry said.