“The first quarter of this year got off to a super start for 84,103 Australian women, who received a $76.7 million boost to their superannuation accounts courtesy of the Howard Government’s superannuation co-contribution scheme,” the Minister for Revenue and Assistant Treasurer, Peter Dutton said today. *
Under the Howard Government’s superannuation co-contribution scheme, the Government matches $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.
“The Government made a total of 143,392 co-contribution payments in the first quarter of the year, in respect of personal contributions made by low and middle income workers in the 2004/05 financial year.”*
“Since the commencement of the superannuation co-contribution scheme over $1.18 billion has been injected into the super funds of Australian workers to help them save for their retirement.”
“The Superannuation Co-contribution scheme is about to get much better,” Mr Dutton said.
“From 1 July 2007, the scheme will be extended to low and middle income self employed people, who were previously unable to access this super savings incentive.”
“This will provide real retirement savings assistance to thousands of Australian men and women who run their own business,” he said.
“However, Kim Beazley is again showing his weak leadership on this issue. Labor has refused to declare its position on this great new initiative, which forms part of the Plan to Streamline and Simplify Superannuation announced in the Budget,” Mr Dutton said.
Background
* These figures refer to payments made, for original entitlements determined during the period 1 January 2006 – 31 March 2006 and all refer to after-tax superannuation contributions made during the 2004-05 Financial Year.