The first year of the expanded co-contribution scheme has been a stunning success, with 890,630 people entitled to superannuation co-contributions worth approximately $695.7 million, Minister for Revenue and Assistant Treasurer Peter Dutton announced today.
“These first figures from the December quarter show that the Howard Government’s superannuation co-contribution is delivering on its promise to give low and middle income workers a helping hand to build their retirement savings,” Mr Dutton said.
“Women have embraced the co-contribution, with 498 753 Australian women making payments into their superannuation funds last year which entitled them to an average co-contribution payment from the Government of approximately $855,” Mr Dutton said.
“Interestingly, more than 30% of co-contributions were made to Australians aged 35 years or younger, showing that young Australians are taking an interest in their superannuation – an interest that will pay off in the years ahead.”
These figures relate to entitlements calculated during the period 1 October 2005 – 31 December 2005 and all refer to after-tax superannuation contributions made during the 2004-05 Financial Year. The ATO calculates co-contribution payments by matching income tax returns against superannuation fund member contribution statements.
Under the expanded 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 1.51 million co-contribution entitlements worth approximately $1.046 billion have been successfully paid to superannuation funds of Australians over the first two years of the co-contribution,” Mr Dutton said.
“These figures completely embarrass Labor’s position that the co-contribution scheme should be abolished,” he said.