MAKE 2007 A SUPER YEAR
The Member for Berowra, Philip Ruddock MP said today that with many Australians should think about investing in their superannuation.
“With the Government’s reforms to superannuation making it the most attractively taxed investment vehicle, Australians should consider making a super resolution,” Mr Ruddock said.
“The Federal Government’s superannuation co-contribution scheme means that superannuation can really pay dividends for low and middle income workers.”
Under the 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 per year. The co-contribution phases out completely for employees earning more than $58,000.
“For example, a 30 year old employee on $28,000 a year who makes after tax contributions of $1000 annually (around $20 per week) into their superannuation account will receive a government co-contribution of $1500,” Philip Ruddock said.
“If the same worker keeps making that contribution every week until they retire at age 60, they will have an additional $105,000 in real terms in their superannuation - which they will take out tax free thanks to the Government's simplified superannuation reforms.”
From 1 July 2007 the superannuation co-contribution scheme will be extended to the self employed.
“I urge all self employed people who will become eligible for the co-contribution to plan ahead to make sure they can make contributions to their superannuation after 1 July 2007,” Philip Ruddock said.
“Of course all Australians who have their superannuation in taxed funds will able to withdraw it tax free after they turn 60 – a great incentive to put a bit more in now. For more information on the superannuation co-contribution, go to www.ato.gov.au/super or call 13 10 20," Mr Ruddock said.