ATO figures show strong co-contribution take-up
The Federal Government is claiming a victory with respect to the implementation of its superannuation co-contribution scheme, quoting Australian Taxation Office figures indicating that more than 200,000 Australians have taken advantage of the new regime.
The Assistant Treasurer, Mal Brough said that the ATO data had indicated around 215,000 cases where a co-contribution payment has been made to a person’s superannuation fund.
“The ATO estimates that the value of these payments is approximately $110 million, with the average payment of around $510 extra toward retirement incomes,” he said.
Brough reminded taxpayers that in the current financial year eligible personal superannuation contributions would be matched by the Government at 150 per cent for every dollar contributed subject to an increased maximum contribution of $1,500.
The Minister’s announcement was welcomed by the Investment and Financial Services Association (IFSA) with Chief Executive Officer, Richard Gilbert saying it came as no surprise to his organisation.
“IFSA lobbied independent Senators and the Democrats to support the legislation which was narrowly passed on the votes of Senators with constituents from States where lower income earners are proportionately higher than those likely to benefit from the super surcharge reduction,” he said.
Gilbert said IFSA expected the take-up of the co-contribution to be even higher in 2005.
“IFSA’s research, based on 2001 Census data, indicates that almost 6.2 million Australians stand to benefit from the Government’s co-contribution pay-out, while some 505,000 higher income earners are likely to be eligible for the surcharge reduction measures announced at the same time,” he said.
“This Government initiative has shown that if you give Australians an incentive to save for their retirement, they will,” Gilbert said.
AUTHOR
Mike Taylor
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
