Government outlays $244 million for co-contribution
By Michael Bailey
THE Federal Government has topped up the retirement savings of low to middle income earners by $244 million in the 19 months since the introduction of the superannuation co-contribution scheme, according to the Minister for Revenue and Assistant Treasurer, Mal Brough.
Around 450,000 Australians had received the additional payments from the Australian Taxation Office into their nominated super fund, Brough told Parliament last week.
Almost two-thirds of the payments had gone to women, with an average co-contribution of $570, while men received an average payment of $490.
When introduced at the start of the 2003-04 financial year, the Government promised to match dollar-for-dollar every voluntary contribution up to $1,000 from those earning under $27,500, with payments phased out for those earning up to $40,000.
For 2004-05, after lobbying by groups like the Association of Superannuation Funds of Australia, the Government promised to pitch in $1.50 for every $1 contributed by those earning below $28,000, with assistance phasing out at a higher income threshold of $58,000.
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