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Superannuation co-contribution campaign.



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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 www.ato.gov.au/super, or phone the Tax Office on 13 10 20.

MELBOURNE 24 March 2005

Contact: David Alexander 03 9650 0244