The Institute of Chartered Accountants in Australia has submitted a paper to Government supporting the recent changes to superannuation announced in the May budget earlier this year but stating there is still room for improvement and further clarification needed.  
 
“Superannuation affects every Australian and the Institute appreciated the consultation process the Government initiated. The budget presented a more simplified superannuation reform that improves retirement incomes and increases incentives to work and save. But there are areas that have been overlooked and can be further strengthened to help achieve this objective,” said Hugh Elvy, Financial Planning and Superannuation Manager, Institute of Chartered Accountants in Australia.  
 
In particular the Institute supports the treatment of the self-employed in the same manner as those in traditional employment.  
 
The Institute requests the Government to address the inequity in regards to disability payments and the removal of restrictions on contributions made for non-working and self-employed Australians. The restrictions presently imposed mean that those who have never worked due to disability, do not have access to superannuation monies even if they are in their name.  
 
“The Institute is highlighting circumstances that can have an enormous impact on Australians lives and need to be addressed as part of the new superannuation regime. The budget was a great start and the Institute intends to help the Government further succeed in simplifying the new superannuation regime,” said Elvy.  
 
The Institute has used the paper to raise an ongoing issue that of recommending the Government review the inequity in the pension system that arises with a married couple receiving only 80 per cent of the pension benefit compared to two singles that are interdependent. Under the age pension, those that are single receive $499.70 per fortnight where individuals in a couple receive $417.20 each. In this case couples under the taxation system are assessed as individuals whilst under the pension system they are assessed as a couple.  
 
Elvy continues, “There is inconsistency in the Government defining those that are married or in a defacto relationship as ‘partnered’ who will receive the couple allowance, where same sex couples and friends or siblings living together are defined as singles. With an aged population households consisting of persons other than spouses are likely to increase and these ‘couples’ should be recognised the same as two people living together in a heterosexual partnership.”  
 
The Institute submission will be available on www.icaa.org.au week commencing Monday 14th August 2006.