The Government is leaving the brakes on the superannuation co-contribution regime.
The Budget papers revealed that the Government would be continuing its freeze of the indexation applied on the income threshold above which the maximum superannuation co-contribution begins to phase down for an additional year to 2012-13.
It said the measure was expected to deliver savings of $75 million over three years from 2012-13.
Under the superannuation co contribution scheme, the Government provides a matching contribution for contributions made into superannuation out of after-tax income.
The matching contribution is up to $1,000 for people with incomes of up to $31,920 in 2010 11 (with the amount available phasing down for incomes of up to $61,920). This measure will continue to freeze these thresholds at $31,920 and $61,920 respectively.
