Almost $1 billion added to national retirement savings

Almost $1 billion has been added to the superannuation savings of Australian workers, in the first full year of the expanded superannuation co-contribution scheme.

The Minister for Revenue and Assistant Treasurer, the Hon Peter Dutton MP, announced the Government made 1,162,730 co-contribution payments worth a total of $934,127,510 in respect of the 2004/05 financial year. The average size of the Government’s co-contribution payment for the year was $803.

Australian women have supported the co-contribution scheme, with 669,246 women sharing in co-contribution payments worth $585,684,293 over the year.

Under the expanded superannuation co-contribution scheme, the Government contributes $1.50 for every $1 of after-tax superannuation contributions made by employees earning up to $28,000, up to a maximum co-contribution of $1500. The co-contribution phases out for employees earning more than $58,000.

The scheme will become available to the self-employed from 1 July, 2007.