Thursday, 15 May 2008 
 
The Institute of Chartered Accountants in Australia (the Institute) is pleased that the Government has allowed the superannuation changes of the last 12 months to bed down, by not announcing any changes to existing arrangements in this week’s Federal Budget.  
 
After the raft of changes from the previous year the Institute has welcomed the position taken by the Government in ensuring the Better Super rules remain. 
 
Speaking at the Institute’s NSW Business Forum today, Kevin Smith FCA, from the Professional Super Advisers, said it is pleasing that the Better Super rules introduced from 1 July 2007, which were a significant step in encouraging individuals to save for their own retirement, have been principally unaltered. 
 
“After years of superannuation changes, it is comforting that the Rudd Government has provided stability in stating that it will preserve the tax free superannuation payment for the over 60’s.” 
 
“This is a win-win situation - the Government will save on future age pension payments and retirees will save on tax.” 
 
“Individuals can now plan for their retirement with the assurance that superannuation is the preferred investment vehicle for retirement purposes,” said Mr Smith. 
 
Hugh Elvy, Manager of Superannuation and Financial Planning for the Institute supports the Government’s introduction of a superannuation clearing house, announced in the budget, which will assist employers meet their choice of superannuation requirements.  
 
“The superannuation clearing house is an administration issue we have raised with Government following feedback from members and their small business clients.” Mr Elvy said.  
 
The superannuation clearing house allows an employer to pay their contributions to a single location. The clearing house will then distribute the contributions to the superannuation funds chosen by each employee. The clearing house is free for small businesses with 20 or less employees.  
 
“The Institute will have ongoing consultation with the Government on superannuation, and will work with the government on enhancing and improving Australia’s superannuation system, particularly in regards to self managed super funds (SMSFs), as outlined in its submission to Senator Sherry on SMSFs.” Mr Elvy added.  
 
The Institute’s SMSF submission is attached to this media release and is also available at charteredaccountants.com.au