Dramatic drop in co-contribution payments in 2013/14

ATO Taxation Statistics 2012/13, superannuation, co-contributionRecently released ATO statistics show policy decisions led to a dramatic decrease in co-contribution payments in 2013/14, along with lower personal concessional superannuation contributions.

There figures are found in the ATO Taxation Statistics 2012/13, which also includes superannuation figures for the 2013/14 financial year.

Co-contribution

According to the statistics there was a dramatic drop in the number and amount of superannuation co-contributions made in 2013/14.

In 2012/13 922,100 co-contribution payments were made, totalling $526 million. In 2013/14 this had dropped to 548,220 payments totalling $185 million.

Superannuation co-contributions payments drop

These payments were made in 2013/14, but related to the 2012/13 year. 2012/13 was the first financial year with the lower 50% matching rate with a maximum $500 co-contribution, compared to $1,000 in the previous financial year. It is likely the drop is a combination of the lower payment, effectively lower cut-off threshold and less incentives to make eligible contributions.

Personal superannuation contributions

Superannuation policy changes also appear to have reduced the amount of personal superannuation contributions claimed as a deduction. In 2011/12 185,860 deductions were claimed, totalling $4.4 billion. In 2012/13 a similar 183,975 deductions were claimed, but only totalling $2.909 billion.

The likely explanation for this was the ending of the higher $50,000 contributions cap for people over age 50, leaving everyone on the $25,000 general concessional contributions cap.

Lost and Unclaimed superannuation

The number of accounts classified as ‘lost‘ has been dropping for several years, down from 3.4 million in 2011/12 to 2.5 million in 2012/13 and 1.7 in 2013/14. However the value of these accounts hasn’t dropped proportionally, the total value at 30 June 2012 was $16.8 billion, at 30 June 2014 it was $14.4 billion.

The number of superannuation accounts classified as ‘unclaimed‘ has also been increasing, up from 2.8 million in 2011/12 to 4.3 million in 2013/14. The value of these accounts has increased from $887 million in 2011/12 to $2.318 billion in 2013/14.

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