“The first full year of the expanded superannuation co-contribution scheme has been a stunning success,” the Minister for Revenue and Assistant Treasurer, Peter Dutton, announced today. “I am delighted to announce that the Government has made 1,162,730 co-contribution payments worth a total of $934,127,510 in respect of the 2004/05 financial year*.”
“Australian workers have embraced the Government’s “helping hand” to build their nest eggs,” the Minister said. “The average size of the Government’s co-contribution payment for the year was $803 – that’s a big incentive for low and middle income workers to put some money away for retirement.”
“And there’s more to come,” the Minister said. “From 1 July 2007 the self employed will become eligible for the co-contribution for the first time, giving small business people on low and middle incomes the same helping hand to build their super”.
“Australian women have continued their strong support for the co-contribution scheme, with 669,246 women sharing in co-contribution payments worth $585,684,293 over the year.”
Under the expanded 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. The co-contribution phases out for employees earning more than $58,000.
The Minister encouraged all employees who would be eligible for a co-contribution payment this year to consider saving in superannuation.
“Combined with the generational changes announced in the Budget to simplify and streamline superannuation, there has never been a better time in our history for workers to build their retirement nest egg.”
* These figures all relate to original entitlements determined during the period 1 July 2005 to 30 June 2006 for superannuation contributions made during the 2004-05 Financial Year.