Minister for Revenue and Assistant Treasurer, Peter Dutton, today announced that more Australians on low and middle incomes are being assisted by the Government’s Superannuation Co-contribution scheme.
“I am pleased to announce that 799,156 Superannuation Co-contribution payments worth more than $631 million were made to Australian workers during the period 1 October 2006 to 31 December 2006,” Mr Dutton said.*
“That’s $631 million injected directly in the superannuation accounts of low and middle income workers to help them to save for their retirement.”
“It’s a $631 million “super boost” for hard working Australians from a programme that Labor promised to abolish at the last election,” he said.
Under the superannuation co-contribution scheme the Government contributes $1.50 for every $1 of after-tax superannuation contributions made by employees earning up to $28,000, up to a maximum co-contribution of $1500 per year. The co-contribution phases out completely for employees earning more than $58,000.
Over 2.7 million co-contribution payments worth approximately $2 billion have been successfully paid to superannuation funds of Australians over the first three years of the Howard Government’s co-contribution scheme,” Mr Dutton said.
“Getting into the co-contribution “super habit” can add thousands of dollars to an individual’s retirement income. Yet we still have yet to hear from Kevin Rudd whether he unequivocally supports the scheme.”
“Given the scheme is extended to the self employed from 1 July 2007, it is vital that Kevin Rudd personally gives Australia an assurance that the co-contribution is here to stay,” he said.
* These figures relate to entitlements calculated during the period 1 October 2006 – 31 December 2006 and all refer to after-tax superannuation contributions made during the 2005-06 Financial Year. The ATO calculates co-contribution payments by matching income tax returns against superannuation fund member contribution statements.