Senator the Hon Nick Sherry, Minister for Superannuation and Corporate Law, today announced the government has now paid over $1 billion in superannuation co-contributions this financial year.
"This provides a $1 billion boost to the superannuation savings of low and middle income earners.
"It is great to see so many Australians planning for their future and taking advantage of the superannuation co-contribution. Over one million people have benefited so far this year", said Minister Sherry.
The co-contribution is a government payment made to a person's superannuation fund.
"The Government is working hard to ensure that Australian families prosper well into the future. We're taking tough decisions on Government spending to fight the inflationary legacy left by the previous Government.
"We have also begun delivering on each of our commitments including the establishment of the First Home Savers Accounts.
"The Government's support for a strong superannuation system is another key part of our overall approach to managing the Australian economy", Minister Sherry said.
To be eligible to receive a Government co-contribution in this financial year, an individual must have made personal super contributions by 30 June 2007 and met eligibility conditions.
"It is important individuals ensure they don't miss out on a co-contribution payment next financial year by making personal contributions before 30 June 2008.
"Those individuals with an income less than $58,980 will receive a government co-contribution payment, if they meet eligibility conditions, and those on an income of $28,980 or less will receive the maximum co-contribution payment of $1.50 for every $1 of after tax contributions. The maximum co-contribution payment is $1,500", said Minister Sherry.
Co-contribution payments have also been extended to the self employed. Eligibility now extends to those who earn 10% or more of their income from eligible employment, running a business or a combination of both.