Meeting of The Ministerial Council for Commonwealth-State Financial Relations and The Australian Loan Council
March 23, 2005GST, State Windfall, Petrol, Budget – Interview with Leon Byner, Radio 5AA, Adelaide
March 31, 2005
NO.024
SUPERANNUATION CO-CONTRIBUTION CAMPAIGN
The Government is launching a campaign today to raise awareness of the availability
of a generous government scheme matching and boosting personal contributions
made to superannuation.
Under the scheme – called the Government Superannuation Co-contribution
Scheme – eligible employees receive $1.50 contribution from the Government
for every dollar contribution from the individual.
The aim of the scheme is to boost personal savings for retirement. The initial
scheme matched dollar for dollar personal contributions, but the Government
decided last Budget to increase the incentive even further by increasing the
Government’s contribution to $1.50 for every dollar.
This has been immensely successful – more than half a million Australians took
up the co-contribution offer last financial year, making personal contributions
to their retirement savings and receiving an average top-up to those savings
of $530.
Low and middle income employees who make a personal contribution to their super
fund have the potential to qualify for a booster co-contribution of up to $1500
from the Government.
Employees earning up to $28 000 total income this financial year and making
personal contributions to superannuation will receive a co-contribution of $1.50
for every dollar put into super, to a maximum co-contribution of $1500.
Above $28,000 total income, the maximum co-contribution a person can receive
reduces by five cents for each dollar earned, before phasing out completely
at $58 000 total income.
The ATO will contact nearly three million taxpayers in coming weeks highlighting
their eligibility to receive a retirement savings top-up through the expanded
Super Co-contribution measure.
To receive a co-contribution, eligible individuals need only make a personal
contribution to their complying superannuation fund and lodge their tax return.
The Tax Office does the rest.
Super funds, tax agents and financial planners can provide more information
about co-contributions. Further information is also available at
or phone the Tax Office on 13 10 20.
MELBOURNE
24 March 2005
Contact: David Alexander
03 9650 0244