7 September 2006 
 
 
The Institute of Chartered Accountants in Australia applauds the Government’s prompt consultation process of superannuation submissions and the conclusions drawn in the ‘Outcomes of Consolidation’ paper announced yesterday that will benefit Australians in retirement.  
 
The ‘Plan to Simplify and Streamline Superannuation’ announced as part of the May budget earlier this year attracted 1,500 written submissions including a detailed submission from the Institute, and more than 3,500 phone calls from across the community.  
 
“The Government has responded to many of the Institute’s recommendations such as invalidity payments allowing those that have never worked or are self-employed to be able to receive a superannuation benefit in the event of a serious disability. This is a proposal the Institute has been advocating for a number of years and means that in the event of a serious disability, a person can access savings to make the appropriate lifestyle modifications to their home or transport which can have a major impact on their quality of life,” said Hugh Elvy, Manager Superannuation and Financial Planning, Institute of Chartered Accountants in Australia.  
 
Other areas the Institute had covered that the Government is implementing are death benefits paid as a pension to a surviving dependent child and exemptions to the concessional contribution cap.  
 
The key areas the Government highlighted as part of the outcomes of consultation are:  

• Removal of benefits tax from 1 July 2007 for Australians aged 60 and over who have already paid tax on their superannuation contributions and earnings
 

• The abolition of reasonable benefit limits and age-based contribution limits
 

• Greater flexibility for individuals as to how and when they wish to draw on their superannuation in retirement
 

• Allowing self-employed to claim a full deduction for their superannuation contributions and be eligible for the Government co-contribution for their personal post-tax contributions