No.008

Tuesday 8^th February, 2005

$244m INJECTION INTO AUSTRALIANS' RETIREMENT SAVINGS

Around 450,000 low to middle income earners have been able to 'supersize' their superannuation accounts to date thanks to the Government's co-contribution scheme.

Minister for Revenue and Assistant Treasurer, Mal Brough, today released figures in Parliament showing that, as at 3 February 2005, the Australian Taxation Office has paid out approximately $244 million in co-contribution payments to the superannuation funds of around 450,000 Australians.

"Around 63% of payments have gone to females, with these women receiving an average co-contribution payment of $570," Mr Brough said.

Men accounted for around 37% of payments, with an average co-contribution payment of approximately $490.

The payments relate to co-contributions for the 2003/04 financial year, when eligibility for the scheme was based on the Government matching dollar for dollar personal contributions made by persons with income up to $27,500, phasing out at $40,000.

In the 2004/05 Budget the Government significantly extended the co-contribution scheme to provide further incentives to low and middle income employees.

In the current financial year, eligible personal superannuation contributions will be matched at $1.50 for every $1 contributed up to a maximum co-contribution of $1,500 for those persons on incomes up to the increased lower income threshold of $28,000. The maximum co-contribution will phase out at an increased higher income threshold of $58,000 (up from $40,000).

"Australians of all ages are embracing the co-contribution scheme."

Media Contact: Carlie Hogan - 6277 7360

ATTACHMENT

PERCENTAGE OF SUPERANNUATION CO-CONTRIBUTION PAYMENTS BY AGE RANGE

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