The Turnbull and Baird Governments have entered into a four year transitional arrangement to ensure New South Wales (NSW) Police officers can make voluntary superannuation contributions towards their retirement, Federal Treasurer, the Hon. Scott Morrison and NSW Treasurer, the Hon. Gladys Berejiklian announced today.
Administrative changes to payment structures and the payment of death and disability insurance for NSW Police in 2012 had the effect of leaving some NSW Police officers with more limited ability to make voluntary salary sacrificed concessional contributions towards their retirement without incurring an additional tax burden. In turn, this meant they had less scope to save for their retirement through superannuation.
Treasurer Morrison said: "I know that police officers work hard to keep our community safe. Given the dangers they face it is crucial they have every opportunity to save for their retirement, and provide their families with greater financial security for their future.
"The Turnbull Government has listened to the concerns of NSW Police officers and has acted to ensure NSW Police officers' retirement savings are not adversely affected during negotiations on a permanent solution to this issue.
"The Federal Government has therefore entered into a four year transitional arrangement with the NSW Government to equally share the costs of ensuring that NSW Police officers have the same scope to make salary sacrifice contributions into superannuation as other individuals without incurring an additional tax burden.
"Under these new arrangements the Federal and NSW Governments will provide funding for the reimbursement of additional tax that NSW Police officers would incur on voluntary concessional contributions that would not have exceeded their concessional cap prior to 2012.
"I thank my colleague the Member for Macarthur, Russell Matheson for his advocacy on this important issue. As a former NSW Police officer Russell has worked tirelessly to ensure a fair outcome for NSW Police officers and their families," Mr Morrison said.
Treasurer Berejiklian said: "Our police officers work hard to protect our community and we owe it to them to ensure they have a stable and secure retirement. The NSW Government is pleased to be supporting our men and women in the police force to ensure they have every opportunity to put aside money towards their retirement.
"This is a good example of the Federal and NSW Governments working together to deliver a strong message of support for those who do so much to serve our community."
NSW Deputy Premier and Police Minister Troy Grant said police perform one of the most dangerous jobs in the community and deserve this support.
"I congratulate the Commonwealth Government for recognising, as the NSW Government does, that our hard-working men and women in blue who put their lives on the line for our communities deserve this break," Mr Grant said.
This arrangement will begin by applying to superannuation contributions made in the 2016-17 financial year.