Industry superannuation funds Sunsuper, Hesta and the Government Employees Superannuation Board (GESB) have welcomed the budget's one-off co-contribution measure urging their members to take advantage of the initiative.
On Tuesday night, Federal Treasurer Peter Costello announced that the Government would double its $1500 co-contribution for people who made a voluntary contribution into their super fund during 2005 and 2006.
"I would strongly urge those who are eligible to continue to take advantage of the co-contribution scheme."
"Findings from our member survey show our younger members are less likely to make personal contributions than older members despite the fact that they are probably on a lower income and therefore in a better position to take advantage of the full incentive," Sunsuper chief executive Don Luke said.
Around 20,000 GESB members will share in $26 million in payments from this initiative, GESB chief executive Michele Dolin said.
"The measure is very good. Over 40,000 of our members will benefit from the doubling of the superannuation co-contribution. We expect about $40 million will be injected into our member accounts," Hesta marketing and communications manager Bruce Stafford said.
Both Sunsuper and Hesta would like the Government to do more for lower to middle income earners.
Only those who took advantage of the co-contribution scheme during 2005 and 2006 period will benefit and more could have been achieved if the annual income threshold restrictions for the co-contribution scheme were lifted, Sunsuper chief executive Don Luke said.
"We would have preferred the incentive to continue on an on-going basis. As our members are largely female and part-time workers we would have liked the current $450 a month superannuation threshold to be eased," Stafford said.
