Leading asset consultancy Mercer Human Resources has told the Federal Government further refinements need to be made to the superannuation system to make it simpler, more cost-effective and fairer, including allowing the Australian Taxation Office (ATO) to communicate directly with fund members.

In a submission to the Government in the wake of the superannuation measures announced in the Budget, Mercer actuary and principal Dr David Knox recommended a number of changes, warning that the levels and disparity within the proposed limits on deductible and undeducted superannuation contributions resulting from the Budget would create costly and complex anomalies.

He said Mercer, while supportive of the changes to superannuation overall, believed there were ways to make the new system even simpler and more cost effective to administer, and fairer for all. Hence, Mercer has made several recommendations along these lines in their submissions to the Federal Government during the current consultation period.

“The measures we are proposing will streamline the proposed processes, which will be unfair for some people and will increase costs complexity for funds. This extra complexity will mean higher fees for all members,” Knox said.

He said one way of simplifying the system was to allow the ATO to liaise with fund members, rather than the funds themselves, whenever contributions exceed the limits.

“If someone has put too much money in, it will be much easier if the ATO can liaise directly with the member, or their tax agent, to confirm that there have been no errors in reporting the contributions. Leaving the fund out of this process cuts out the middle man and will significantly streamline the process,” Knox said.