Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Peter Costello MP)General outline and financial impact
Additional one-off Government superannuation co-contribution
The Government will provide an additional one-off Government superannuation co-contribution that will double the amount received by eligible persons in the 2005-06 income year.
For example, if a person was eligible for a co-contribution of $1,500 in respect of the 2005-06 income year, they will now receive an extra $1,500 making a total of $3,000 for that year.
Date of effect : This measure commences on Royal Assent and applies to contributions made in the 2005-06 income year.
Proposal announced : This measure was announced on 8 May 2007 in the 2007-08 Budget.
Financial impact : This measure is expected to result in a cost of $990 million in 2006-07 and $80 million in 2007-08.
Compliance cost impact : The increase in compliance costs for superannuation providers will be negligible, since they already accept Government co-contribution payments.
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