Women win out under co-contribution scheme

Women could be the big winners from the superannuation co-contribution scheme for low income workers, with more than 126,000 expected to have their retirement savings topped up by the Federal Government, new figures show.

The figures, released late last week by minister for revenue and assistant treasurer Mal Brough, show that of the people to receive a Government co-contribution for the 2003/04 financial year, 59 per cent are women.

Initial estimates from the Australian Taxation Office (ATO) indicate 215,000 people all up will be eligible for the payment for the 2003/04 financial year, with the average payment in the order of $510, according to the ATO.

In a prepared statement last week, Brough said the new figures proved the co-contributions scheme was popular with women.

“[The] figures are a positive sign that the superannuation co-contribution scheme is helping women to build wealth for their retirement future. Women are clearly showing they want to ‘upsize’ their retirement savings,” he said.

For the 2003/04 financial year, the Government agreed to match dollar for dollar the personal superannuation contributions of low income workers - up to a maximum of $1,000 - under the co-contribution scheme.

From the current financial year, the Government has agreed to match every dollar in personal superannuation contributions made by low income workers with a payment of $1.50, up to a maximum of $1,500.

Investment and Financial Services Association chief executive Richard Gilbert said the number of people who made personal super contributions to take advantage of the scheme was expected to rise over the next year as a result of the increase incentive.