Budget Priorities A Better Superannuation System The Government is introducing a number of incentives to encourage Australians to improve their retirement incomes by making greater superannuation contributions.
From 1 July 2002, qualifying low-income earners who make personal superannuation contributions and have annual incomes under $32,500 will benefit from the Government's co-contribution of up to $1,000 each year. Also, self-employed and other eligible people will be able to claim a full tax deduction for up to $5,000 of superannuation contributions, compared with $3,000 currently.				benefits for low-income earners and higher fully deductible contribution limit for the self-employed
The surcharge, which is applied to the superannuation contributions of higher income earners, will fall by one-tenth of its current level in each of the next three years. The current maximum surcharge rate will fall from 15 per cent to 10.5 per cent in 2004-05.				superannuation surcharge to fall
The Government will improve the Superannuation Guarantee system by requiring payments to be made at least quarterly from 1 July 2003. This will reduce the potential loss of superannuation benefits if bankruptcy or insolvency occurs. The Government also intends to allow members of accumulation funds to split future superannuation contributions with their spouses from 1 July 2003.				quarterly Superannuation Guarantee and splitting of contributions
Superannuation Budget Measures (a) Figures may not add exactly owing to rounding.