The Institute of Chartered Accountants' (the Institute) pre-budget submission has called for the Federal Government to continue its simplification of superannuation by addressing anomalies that exist within the current regime.
"The issues we raise are in their nature administrative reforms, which we believe will improve the equity of Australia's superannuation regime," the Institute's head of financial planning and superannuation Hugh Elvy said.
In its submission, the Institute says it is inequitable to continue with the denial of a personal tax deduction for personal superannuation contributions, if there is employer superannuation support.
Although the 10 per cent rule provides some relief, the Institute said in reality the rule applies in restricted circumstances.
Therefore, the Institute recommended that a tax deduction for personal superannuation contributions, up to the concessional limit, be allowed regardless of how the income is earned.
The submission also notes the contribution rules need to be further simplified, enabling individuals over 65 to make concessional and non-concessional contributions without the work test.
"People aged between 65 and 75 should be able to claim tax deductions for contributions and in the interests of equity, the current 40 hours in 30 days work test should be abolished," Elvy said.
"The issues raised in our submission have been distilled from the input of many of our members who practise in the area of both APRA (Australian Prudential Regulation Authority) regulated superannuation funds and in the SMSF (self-managed superannuation fund) sector."
