Peter Costello
The Federal Government paid more than $934 million in superannuation co-contribution payments to 1.2 million claimants in 2004-05, the first full-year of the expanded scheme.
The average size of these co-contribution payments for the year was $803, according to Minister for Revenue and Assistant Treasurer, Peter Dutton.
“That’s a big incentive for low and middle income workers to put some money away to build their retirement nest egg,” he said.
Proclaiming the first full year of the scheme a “stunning success”, Dutton said eligibility for the scheme would be expanded from July 1 next year to include self-employed people.
“For the first time, small business people on low and middle incomes will receive the same helping hand to build their super.”
Under the expanded scheme, the Government contributes $1.50 for every $1 of after-tax super contributions made by employees earning up to $28,000, up to a maximum co-contribution of $1,500. The co-contribution phases out for employees earning more than $58,000.
Dutton said Australian women in particular have “continued their strong support for the scheme, with 669,246 women sharing in co-contribution payments worth $585,684,293 over the year.”
He encouraged all employees who are eligible for a co-contribution payment this year “to consider saving in superannuation”.
Dutton’s boss, Treasurer Peter Costello, fell in step yesterday at a meeting with 600 Maitland pupils yesterday who have been participating in the Lifeskills financial literacy program.
Costello said he would “like younger people to learn about putting money into superannuation to build savings over the course of their lifetime”.
“Many of them who have part-time jobs will have superannuation accounts but they don’t take a great interest in it and they don’t know what it is about,” he said.
