income streams. What does this mean for your clients?

Size: px
Start display at page:

Download "income streams. What does this mean for your clients?"

Transcription

1 IOOF AdviserConnect IOOF TechConnect Technical bulletin: July Proposed changes to Centrelink assessment of superannuation income streams. What does this mean for your clients? By William Truong, Senior Technical Analyst 7 Asset protection and superannuation: What is the true reality? By Damian Hearn, National Manager Technical Services 9 Dealing with second marriages in super By Julie Steed, Technical Services Manager Proposed changes to Centrelink assessment of superannuation income streams. What does this mean for your clients? By William Truong, Senior Technical Analyst Traditionally, advisers have recommended superannuation-based income streams (such as account-based pensions) as a Centrelink/DVA friendly income stream for clients. But, if the Government has their way, they may soon have to think again. On 5 April 2013, as part of the superannuation reform announcements, the Government publicised the extension of the Centrelink deeming provisions to superannuation-based income streams. Grandfathering provisions, which ensure that only income streams commencing on or after 1 July 2015 would be caught under this proposal, were also outlined. How does it currently work? For those retirees whose Centrelink/DVA entitlements are affected by the income test, many choose to optimise their age pension entitlements by investing in either non-deemed investments, such as an account-based pension, or in deemed assets which provide greater returns than the deeming rates. The IOOF TechConnect team, Damian Hearn, Pam Roberts, Julie Steed, Martin Breckon, Donald Lobo and William Truong provides a comprehensive range of technical support tools for professional financial advisers. 1

2 From a Centrelink/DVA perspective, the reason for investing in an account-based pension is well understood. If you have clients who are paid under the income test, a non-assessable amount (which is essentially a return of capital) is currently available that reduces the chosen income payment. This often results in a much lower income assessment and a potentially higher Centrelink/DVA entitlement. What are the implications of these proposals? As a result of the proposal to extend the deeming rates to superannuation-based income streams there are a number of possible implications that are involved. These include: Under the deeming test, the deeming rates that are applied to financial investments (such as shares and term deposits) generally bear no relation to the actual returns of the investment. For example, if the actual investment return is zero or negative, Centrelink/DVA will still assess the pension as providing either a 2.5 per cent or four per cent return 1, depending on the value of the investment. For Centrelink purposes, there will be no distinction between income and capital withdrawals. Under current assessment, payments from account based pension are generally assessed as income payments, unless an election is made to treat the payment as a capital withdrawal. If the client is holding a reversionary account-based pension for the benefit of a spouse with a longer life expectancy, there will be no disadvantage in the non-assessable amount. There is potential to reduce an aged care resident s age pension entitlement and commence paying an income tested daily fee. What income streams are grandfathered? According to the Government s proposal, superannuation account based income streams commenced prior to 1 January 2015 will not be caught under the deeming rules. However, we have noted that on the Department of Human Services website 2, an additional condition is necessarily to qualify for the grandfathering rules. It states: Account-based income streams held by pensioners, allowees or Low Income Health Care Card holders prior to 1 January 2015 will continue to be assessed under the existing rules unless they choose to change products or buy new products from 1 January Hence, Centrelink s requirement appear more onerous, so to qualify for grandfathering under their rules, individuals would need to be entitled to some form of income support as well as hold a superannuation based income stream prior to 1 January This extra requirement will mean that those individuals under pension age (unless they are in receipt of an allowance or disability support for example), would not be able to voluntarily commence an income stream such as a transition to retirement pension prior to January 2015 to sneak under the grandfathered rules. Also for allowees or disability support pensioners, under pension age, who may be considering commencing an income stream prior to January 2015, need to consider that the balance of their income stream will be assessed towards their assets test. Uncertainty also exists as to the assessment of a continuing pension such as a reversionary pension commenced before 1 January This should maintain its grandfathered status, however, this has not been included in the announcements. It remains to be seen whether a primary member could start a reversionary account-based pension before 1 January 2015 to ensure they have established a grandfathered income stream for the benefit of the surviving spouse and avoid the deeming implications. Although grandfathering provisions may apply, there are risks that any changes made to a grandfathered income stream on or after 1 July 2015 would cause a move to a less generous deeming income test. These changes include: merging two or more grandfathered pensions rolling over a pension to another fund. Given the uncertainty surrounding the grandfathering provisions, it becomes questionable whether it is the Government or the Department of Human Services who is the real driver behind this dialogue. What impact may this have to clients' future retirement plans? This change has the potential to trap clients into an existing grandfathered income stream for their lifetime. It may also encourage retirees to adopt a more conservative asset allocation, which could reduce the growth in pension balances over the long term and increase their longevity risk. Further, when markets perform poorly, or fixed income investments are affected by lower interest rates, deeming exacerbates the risks for clients. 1 Deeming rates as at 20 March

3 On the face of things, this measure contradicts the Harmer Report 3 recommendations on two levels: longevity risk minimisation (as discussed above), and the further complication of the retirement income stream system by targeting concessional treatment of investments that are not caught in the deeming net, such as annuities and direct properties. Naturally, this is likely to lead to a future change in consumer behaviour and a move to annuities as shown in the case studies below. Who will be affected by this proposal? When we take the assets and income tests into account, the following table outlines how couples and singles will be impacted by the proposed changes. Income stream account balance with deemed income greater than $152 4 per fortnight for singles or $268 5 per fortnight for couples Asset level 6 where asset test determines the age pension Single homeowner Couple homeowner $115,825 $202,550 $260,000 $340,000 In summary, this proposal means if you have clients with assets between the deeming threshold and the crossover points (ie the level at which asset test starts to determine pension entitlements), then this may result in a reduced age pension entitlement and possibly a greater focus on other non-deemed investments (such as direct property and annuities). These graphs demonstrate that, when lower levels of assets are held, it is the income test rather than the assets test that determines age pension entitlements. Single homeowner Age pension Couple homeowner Age pension $21,000 $18,000 $15,000 $12,000 $9,000 $6,000 $3,000 $0 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 Deeming begins to reduce the age pension due to the income test when financial assets are above $115,825 0 $40K $80K $110K $140K $160K $180K $200K $220K $240K $260K $280K $300K $320K $340K $380K $420K $460K $500K $540K $580K Assets test Deeming begins to reduce the age pension due to the income test when financial assets are above $202,550 Assets Income test Cross over point at $260,000 of assets 0 $60K $120K $160K $190K $220K $250K $280K $310K $340K $370K $400K $460K $520K $580K $640K $700K $760K $820K $880K $940K $1,000K $1,050K Assets test Assets Income test Cross over point at $340,000 of assets The crossover point is the point at which the income test is replaced by the assets test in determining the level of age pension entitlements. Based on the current rules, below this point, income test friendly investments, such as the accountbased pensions, could be used to increase age pension entitlements. This result leads us to the question, does this measure appropriately target income support clients who hold lower investment balances and are, possibly, the most reliant on social security? 3 Pension Review Report 27 February 2009 The Harmer Report Finding 28: The Review finds that a deeming approach for account-based superannuation products would remove the current distortion in the pattern of payment of pensions to pensioners with such income and assist in equalising the treatment of superannuation products and other financial assets. 4 The $152 per fortnight limit is the allowable income limit that a single client may earn without loss in Age pension entitlement. Assessable income exceeding $152 per fortnight reduces pension entitlement by 50 cents in the dollar. 5 The $268 per fortnight limit is the allowable income limit that a couple may earn without loss in their age pension entitlement. Assessable income exceeding $268 per fortnight reduces the age pension by 50 cents in the dollar. 6 Assumed total assets include financial assets and personal contents of $10,000 only. The amount determined is to the nearest $5,000. 3

4 What impact would higher deeming rates have? As you would be aware, the current deeming rates reflect the current interest rate cycle. However, by taking a longer term view, higher deeming rates can deliver a worse outcome for clients who are impacted by the changes. Single clients: Deeming full pension for singles (homeowner) Under the proposed changes, a single pensioner and homeowner with no children can have financial assets (such as an account based pension) of $115,825 7 and receive a full pension: Couples: Deeming full pension for couples (homeowner) Pensioner couples who are homeowners can have financial assets (including an account based pension) of $202, and receive a full pension: Financial assets Assessed income Financial assets Assessed income $45,400 x 2.5% = $1,135 $70,425 x 4.0% = $2,817 $115,825 $3,952 ($152 pf) 8 If the deeming rates were doubled to five per cent and eight per cent 9 respectively, the level of financial assets a client could have reduces to $66,425 before the income test starts reducing their age pension entitlement. This is calculated as: $75,600 x 2.5% = $1,890 $126,950 x 4.0% = $5,078 $205,550 (combined) $6,968 ($268 pf combined) 11 If the deeming rates where doubled to five per cent and eight per cent 12 respectively, the level of financial assets the couple could have reduces to $115,450, before the income test starts to kick in, as calculated below. Financial assets Assessed income Financial assets Assessed income $45,400 x 5.0% = $2,270 $21,025 x 8.0% = $1,682 $66,425 $3,952 ($152 pf) $75,600 x 5.0% = $3,780 $39, % = $3,188 $115,450 $6,968 ($268 pf) 7 Assuming their only source of income is from financial assets and total assets were below the relevant threshold eg $192,500 for a single homeowner 8 The $152 per fortnight limit is the allowable income limit that a single client may earn without loss in age pension entitlement. Assessable income exceeding $152 per fortnight reduces pension entitlements by 50 cents in the dollar. 9 Deeming rates as at 1 July 1996 was comparable to double the current deeming rates. 10 (assuming their only source of income is from financial assets and total assets were below the relevant threshold e.g. $273,000 for couple homeowners) 11 The $268 per fortnight limit is the allowable income limit that a couple may earn without loss in their age pension entitlement. Assessable income exceeding $268 per fortnight reduces the age pension by 50 cents in the dollar. 12 Deeming rates as at 1 July 1996 are comparable to double the current deeming rates. 4

5 Case Studies The following case studies compare the age pension entitlements between investment in an account based pension (assessed under the proposed deeming rule) against an investment in annuities. Case study 1: Single client Single homeowner: $120k (account based pension versus an annuity) Henry, aged 65, has the following assets: Contents $10,000 Term deposit $20,000 Managed fund $80,000 Super $120,000 TOTAL $230,000 Henry commences an account based pension with $120,000 (drawing $7,372 per annum). Assessed under deeming Assessed under current method 13 Age pension (pa) based on current deeming rates 14 Age pension (pa) based on double the current deeming rates Pension (pa) Max pension $21, $21, $21, Income test $18, $14, $20, Asset test $19, $19, $19, Actual entitlement $18, $14, $19, Difference from full pension ($2,083.38) ($6,143.02) ($1,462.50) Under the current rule and at this level of assets (slightly above the current lower asset test threshold of $192,500), the age pension is paid under the asset test. However, under the proposed deeming treatment, Henry s age pension is paid under the income test. The age pension entitlement is further reduced when the deeming rate is doubled. If Henry instead purchased the following annuities (with superannuation money), it will result in the following age pension entitlement: Purchase price $120,000 $120,000 Term 20 years Lifetime (commutation option) RCV Nil n/a Annual payment $7,372 (indexed to CPI)* $6,000 (CPI indexed) Centrelink deductible amount $6,000 $6,472 Resultant aged pension $19, (paid under the asset test) $19, (paid under the asset test) At this level of assets (slightly above the lower asset test threshold), the annuity reduces the age pension under the asset test. The income treatment of the annuities is more favourable than the proposed income treatment of account based pensions. 13 The Centrelink non-assessable amount (or Deductible amount) is $6,472 ($120,000/18.54). 14 Current deeming rate are 2.5% and 4% respectively. 5

6 Case study 2: Couple clients Couple (homeowner): $220,000 (account based pension versus an annuity) Jenny and Josh are both aged 65 and have the following assets: Contents $ 10,000 Term deposit $ 20,000 Managed fund $ 70,000 Super $220,000 TOTAL $320,000 Josh commences an account based pension with $220,000 (drawing $13,515 per annum). Assessed under deeming Assessed under current method 15 Age pension (pa) based on current deeming rates Age pension (pa) based on double the current deeming rates Pension (pa) Max pension $31, $31, $31, Income test $29, $23, $31, Asset test $29, $29, $29, Actual entitlement $29, $23, $29, Difference from full pension ($2,149.16) ($7,781.80) ($1,833.00) At this level of assets (slightly above the lower couple asset test threshold of $273,000), under the current income test treatment, the age pension is paid under the asset test. However, taking the proposed deeming treatment into account, the age pension is paid under the income test. If we doubled the deeming rates, the age pension entitlement is further reduced. If Josh instead purchased the following annuities (with superannuation money), it will result in the following age pension entitlement: Purchase price $220,000 $220,000 Term 20 years Lifetime (commutation option) RCV Nil n/a Annual payment $13,515 (indexed to CPI) $11,000 (CPI indexed) Centrelink deductible amount $11,000 $11,866 Resultant aged pension $29, (paid under the asset test) $29, (paid under the asset test) The current income treatment of the annuities is more favourable than the account based pension. At this level of assets (slightly above the lower asset test threshold), the annuity reduces their age pension under the asset test. Summary The industry does not expect to see draft legislation before the Parliament is dissolved for the Federal election later this year. Furthermore for this specific proposal to become law, it might require a return of the existing Government. The above case studies illustrates that if this proposal becomes law, there will certainly be a major shift in the retirement income stream landscape. However, before this happens, we anticipate that many industry participants will provide consultative feedback to advocate that different retirement products should be subject to the same rules to ensure competitive neutrality. 15 The Centrelink non-assessable amount (or deductible amount) is $11,866 ($220,000/18.54). 6

7 Asset protection and superannuation: What is the true reality? By Damian Hearn, National Manager Technical Services Superannuation can provide protection for clients in the event of bankruptcy, however advisers must be aware of the rules and associated complexities. The following Q&A will take a look back at the history surrounding bankruptcy and superannuation to provide context to the current rules and the impact they may have to your clients. What impact did the abolition of the reasonable benefit limit have from 1 July 2007? Prior to the abolition of the reasonable benefit limits at 1 July 2007, client superannuation account balances were protected up to the pension reasonable benefit limit. Anything over that amount was generally available to creditors. The removal of the pension reasonable benefit limit ($1,356,291 for the 2006/2007 financial year) meant the bankruptcy protection was not limited to this amount. Combining this with the amendments as at 27 July 2006 provided the added protection for contributions (and the superannuation account balance) made into superannuation as at that date. Clients would be then subject to the new rules applying 27 July 2006 (as outlined below). What relevance did the court case Cook v Benson have? Clients could make contributions into superannuation prior to bankruptcy after the court case of Cook v Benson [(2003) 214 CLR 370] and avoid the then claw back rules pursuant to the undervalued transaction provisions under the Bankruptcy Act. Prior to 27 July 2006, undervalued transactions could occur if a person transferred property within five years before bankruptcy for nil consideration, or less than market value, the property could be clawed back by creditors. In Cook v Benson, the High Court ruled valuable consideration was given and important implication of this case is that if a person transfers property to the trustee of a superannuation fund (such as a contribution) even if it is only one day before bankruptcy, the property cannot be clawed back by creditors pursuant to the undervalued transaction provision. What did the changes in July 2006 mean for superannuation? After the court case of Cook v Benson, the matter of superannuation contributions not being classified as undervalued transactions was a concern for the Government. In response to Cook, the Bankruptcy and Superannuation Acts were amended. From 27 July 2006, new rules applied to any contribution made into a superannuation fund. This means a contribution can be clawed back if the transferor s main purpose was either to: prevent the transferred property being available to creditors, or hinder or delay the process of making property available for division among creditors. If it is the client s main purpose to prevent, hinder or delay and if he or she was insolvent or about to become insolvent at the time the contribution was made needs to be taken into account. It is also important to determine whether there was a pattern of making superannuation contributions. The pattern of contributions is important to determine whether or not the contribution is classified as out of character. When determining this, consideration must be given to whether, during any period ending before the transfer, the transferor had established a pattern of making contributions to one or more eligible superannuation plans. For clients who are making regular contributions at a set amount into superannuation prior to the period of insolvency, then out of character contributions during the period insolvency would be hard to prove. Albeit, the focus is mainly on the situation where the client has only made a single contribution shortly after becomes bankrupt (or during the period of insolvency). These types of contributions would be held to be out of character. What happens if a client becomes bankrupt and makes lump sum withdrawals from superannuation? The Bankruptcy Act provides an express exclusion to any lump sum being received from a superannuation fund by a client. This express exclusion means the amount will not be subject to creditors if the withdrawal is received on or after the date of the bankruptcy. However, this protection is not afforded to pensions that are commenced on or after the date of the bankruptcy. 7

8 What happens if a client becomes bankrupt and commences a pension? The commencement of a pension during a period of bankruptcy means the pension is denied the protection which is applies to a superannuation fund. The pension payments received by a client is considered as income which only received a limited protection from protection from creditors. The exact level of protection afforded to pension payments is based on statutory formula and a client must pay 50 per cent of the excess income above the prescribed threshold amount (ie $59, with one dependant as at 20 March 2013). This threshold is adjusted for inflation twice a year and is adjusted for the more dependants (which includes a spouse). For this reason, there may be an advantage in keeping the bankrupt person s benefits within the accumulation phase of super and making only lump sum withdrawals (assuming they meet a condition of release). While these are the general principles, certain amounts contributed to super either by, or on behalf of the bankrupt in the lead up to bankruptcy can still be clawed back by the bankruptcy trustee. This is generally the case where the contributions have been made with the intention of defeating creditors. Whether the contributions are recoverable or not will generally depend on when the contributions were made. For contributions made from 27 July 2006, the rules have been largely derived to overcome the issues arising from the High Court s decision in Cook v Bension. What is the treatment of life insurance inside and outside superannuation? The proceeds of a life insurance policy received on or after the date of bankruptcy will be excluded from property divisible amongst creditors (as per s116(2)(d)(i) and (ii) of the Bankruptcy Act). This exclusion extends to the bankrupt s spouse in the event of death and captures non-superannuation life insurance policies. If the life insurance policy is held within a superannuation account, it will be protected in the event of death (as per s 116(2)(d)(iii) of the Bankruptcy Act) on the basis that it is a superannuation interest. What happens if the client becomes bankrupt has a self-managed superannuation fund (SMSF)? An undischarged bankrupt is a disqualified person under the Superannuation Industry (Supervision) Act 1993 (SIS Act) and is not eligible to be a trustee of a superannuation fund. If a trustee of a superannuation fund becomes an undischarged bankrupt, they would need to retire as a trustee. While this may be distressing for an individual who acts as a trustee for a retail, corporate or industry fund, it is unlikely to affect the overall management and operation of that fund. However, in an SMSF the results are far more significant. Once an individual is declared to be an undischarged bankrupt, they are no longer eligible to be a trustee of the SMSF, which also means that they are unable to be a member of that fund while it remains an SMSF. If an SMSF trustee becomes an undischarged bankrupt, they are required to notify the Australian Taxation Office (ATO) immediately and make alternative arrangements for their SMSF within six months. If alternative arrangements are not made, the SMSF risks being made a non-complying superannuation fund resulting in some assets and income of the fund being taxed at 45 per cent. This is the last thing a client needs after becoming bankrupt. In addition to the risk of non-compliance and the associated tax penalties, civil and criminal penalties may also apply. A disqualified person acting as a trustee of a superannuation fund is a strict liability offence. Does a solution exist for a client and their SMSF? To avoid subjecting the SMSF to capital gains tax (CGT), clients may choose to transfer the trusteeship to a professional licensed trustee thereby changing the structure of the fund from a SMSF to a small APRA fund (SAF). This type of fund offers clients the same level of investment flexibility and choice but without the trustee responsibilities. Appointing a new trustee is not a CGT event; the fund s entity continues and therefore no CGT is incurred. Existing cost bases and any CGT losses can be carried forward. When the client regains their ability to become a trustee, they are able to convert their fund back into an SMSF structure, again without incurring any CGT. 8

9 Dealing with second marriages in super By Julie Steed, Technical Services Manager When clients marry for a second time they are often keen to ensure that their second spouse is well looked after in the event of their death. However, there is often a desire to balance this with leaving assets to children from the first marriage. This can be particularly so when clients remarry later in life, have no children from the second marriage and have accumulated significant assets in their superannuation fund. In this article, we will examine a method for achieving this objective within superannuation. Overview Under the blended family strategy, a member arranges for their death benefit to be paid as a pension to their second spouse (the pension beneficiary) throughout the spouse s life. Upon the death of the pension beneficiary, the remaining capital is returned to the original member s estate. The member s estate distributes the remaining capital to the member s children or other superannuation death benefit dependants (the remainder beneficiaries). This basically provides the second spouse with a life interest in the deceased member s superannuation. The member determines how the pension benefit will be calculated and the spouse cannot commute the pension or rollover to another fund. If the pension beneficiary dies before the member, the arrangement is voided. Fund types Self-managed superannuation funds (SMSF) provide a multitude of unique opportunities for clients. Assisting clients with estate planning and intergenerational wealth transfers is a major part of their appeal. The other type of self-managed super, a small APRA fund (SAF), is essentially an SMSF with a professional trustee. SAFs provide all of the legislative advantages provided to SMSFs and in respect of the blended family solution they provide a distinct advantage the professional trustee holds the cheque book, not the second spouse. Whilst the blended family strategy outlined in this article is available in an SMSF, the concern of many clients is that things may not go to plan if there is friction between the second spouse and the children from the first marriage. If the second spouse holds the cheque book, they could disappear with the money. Whilst the children would have recourse for breach of the trust deed provisions, locating the spouse and commencing legal proceedings could be a lengthy and expensive process. Documentation This strategy requires a special purpose superannuation trust deed that supports the death benefit design. A deed of acknowledgement between the three parties (member, pension beneficiary and remainder beneficiaries) outlining the arrangement and acknowledging that they understand the arrangement is also highly recommended. Members make a written binding determination to the trustee directing them as to the identity of the pension beneficiary and the remainder beneficiaries. The binding determination also includes the calculation method of the pension beneficiary s maximum pension benefit. The trustee will also formally acknowledge and agree to the binding determination. Calculating the pension The pension is calculated as a multiple of average weekly ordinary time earnings (AWOTE). AWOTE is currently $1,396 or $72,592 per annum. The use of AWOTE provides a strong indicator of purchasing power and provides clients with a sound basis for determining the future income needs of their spouse. AWOTE figures are issued by the Australian Bureau of Statistics (ABS) biannually in May and November. For example, if a client wanted their spouse to receive an annual pension of $100,000 they would currently select an annual pension of 72 times AWOTE ($100,512 per annum). The annual pension payment will be adjusted as at 1 July each year to reflect the updated AWOTE figure. The multiple of AWOTE will not change. The only other determination in calculating the annual pension amount is that the minimum pension required by superannuation law must always be paid. If the multiple of AWOTE chosen by the member was less than the minimum annual pension required by superannuation law, the higher minimum would be paid. 9

10 Variation to pension calculation The pension beneficiary can vary the annual pension payment between the superannuation minimum annual pension amount and the amount previously determined by the member. However, the pension beneficiary cannot elect an annual pension payment above the amount pre-determined by the member. The pension beneficiary cannot commute or rollover the pension payment however they can forfeit their benefit and have it pass to the remainder beneficiaries at any time. On the death of the pension beneficiary Following the death of the pension beneficiary, any remaining balance is paid to the remainder beneficiaries as lump sums with PAYG tax deducted. Blended family case study Paul and Dianne Paul and Dianne have been married for 15 years and they both have adult children from previous marriages. They have a comfortable lifestyle on an income of $300,000 per annum. Paul earns $250,000 per annum, Dianne does not have paid work and they average $50,000 per annum in income from their investments. If one of them was to die they want the surviving spouse to be able to maintain a comfortable lifestyle and remain in the same home. Upon the death of the surviving spouse they want all four children to benefit. Ten years ago Dianne s sister Sue married Bill following the death of her first husband several years earlier. Sue and Bill bought a house together and they also each had two children from their previous marriages. When Sue died a few years ago all her assets passed to Bill. Bill died just recently. It was the family s understanding that when Bill died the estate would be divided between all four children. However, sadly for Sue s children this wasn t the case and Bill s children received all of the estate assets. Paul and Dianne are keen to ensure that they have secure plans in place to ensure that this can t happen to their children. Paul and Dianne have the following assets: Ownership Asset Value $ Tenants in common Family home 1,500,000 Joint Shares 200,000 Joint Cash 80,000 Paul Superannuation 1,400,000 Dianne Superannuation 400,000 Total 3,580,000 After meeting with their financial adviser and estate planning specialist, Paul and Dianne make a number of changes to their financial arrangements. They have Wills prepared which include a lifetime right to reside in the family home. Upon the death of the second of them, all four children will share the proceeds of the sale of the family home. All of the cash and shares pass to the other on the death of the first. Paul and Dianne convert their SMSF to a SAF and make binding determinations specifying each other as the pension beneficiary and their own children as remainder beneficiaries. They set the annual reversionary pension as a multiple of AWOTE, acknowledging that they can change the multiple any time prior to death if their lifestyle needs change. Five years later, Paul dies and their estate plans are activated. Dianne continues to live in the family home and she has access to the cash and shares. Paul s superannuation death benefit is paid to Dianne as a pension at the pre-determined multiple of AWOTE. Upon Dianne s death, her share of the house will pass to her two children and Paul s share of the house will pass to his two children. It is likely that the children will sell the house and receive a quarter of the proceeds each. The remainder of Paul s superannuation account is paid to his two children and Dianne s superannuation is paid to her two children. Conclusion A SAF can provide a powerful estate planning tool for blended families who wish to provide for a second spouse during their lifetime whilst maximising the opportunity to leave a residual estate to children from former relationships. For more information on this strategy please contact your business development manager. 10

11 For more information on the IOOF TechConnect team or IOOF AdviserConnect services, please speak to your business development or relationship manager, go to or call adviser services: For IOOF Pursuit please call For Portfolio Administrator or AssetLink please call For Spectrum Super please call This document is for financial adviser use only it is not to be distributed to clients. Issued by IOOF Investment Management Limited (IIML) ABN AFSL as trustee of the IOOF Portfolio Service Superannuation Fund ABN and Service Operator of the Investor Directed Portfolio Services. IIML is a company within the IOOF group of companies consisting of IOOF Holdings Limited ABN and its related bodies corporate, and is not a registered Tax Agent. Examples contained in this communication are for illustrative purposes only and are based on the assumptions disclosed and the continuance of present laws and our interpretation of them. Whilst every effort has been made to ensure that this information is accurate, current and complete, neither IIML nor its related bodies corporate within the IOOF Group give any warranty of accuracy, reliability or completeness, nor accept any responsibility for any errors or omissions (including by reason of negligence) and shall not be liable for any loss or damage whether direct, indirect or consequential arising out of, or in connection with, any use of or reliance on, the information provided in this . The information in this and any attachments may contain confidential, privileged or copyright material belonging to us, related entities or third parties. If you are not the intended recipient you are prohibited from disclosing this information. If you have received this in error, please contact the sender immediately by return or phone and delete it. We apologise for any inconvenience caused. We use security software but dot not guarantee this is free from viruses. You assume responsibility for any consequences arising from the use of this . This may contain personal views of the sender not authorised by us. PLA

Current as at 1 July 2014 Adviser use only. Technical guide: Challenger Lifetime and Term Annuities

Current as at 1 July 2014 Adviser use only. Technical guide: Challenger Lifetime and Term Annuities Current as at 1 July 2014 Adviser use only Technical guide: Challenger Lifetime and Term Annuities Table of contents Introduction 1 Challenger Lifetime Annuities 2 Product features 3 Centrelink treatment

More information

IOOF Technical Advice Solutions Client strategies for advisers. Superannuation and death benefits in the Simpler Super environment.

IOOF Technical Advice Solutions Client strategies for advisers. Superannuation and death benefits in the Simpler Super environment. IOOF Technical Advice Solutions Client strategies for advisers Superannuation and death benefits in the Simpler Super environment Adviser use only IOOF Technical Advice Solutions Since 1 July 2007, the

More information

Challenger Guaranteed Annuity (Liquid Lifetime)

Challenger Guaranteed Annuity (Liquid Lifetime) Challenger Guaranteed Annuity (Liquid Lifetime) Product Disclosure Statement (PDS) Dated 27 October 2014 Challenger Guaranteed Annuity (SPIN CHG0005AU) Issuer Challenger Life Company Limited (ABN 44 072

More information

A Financial Planning Technical Guide

A Financial Planning Technical Guide Self Managed Superannuation Funds A Financial Planning Technical Guide Securitor Financial Group Limited ABN 48 009 189 495 AFSL 240687 Contents What is a self managed superannuation fund (SMSF)? 1 What

More information

Self managed superannuation funds. A Financial Planning Technical Guide

Self managed superannuation funds. A Financial Planning Technical Guide Self managed superannuation funds A Financial Planning Technical Guide 2 Self managed superannuation funds What is a self managed 4 superannuation fund (SMSF)? What are the benefits? 4 What are the risks?

More information

Superannuation death benefits

Superannuation death benefits Last updated: 7 September 2010 Last updated: 1 January 2011 Superannuation death benefits This TapIn Guide looks at the key tax issues relating to superannuation death benefits paid from a complying superannuation

More information

Changes to regulatory settings for financial products dealing with longevity

Changes to regulatory settings for financial products dealing with longevity ASFA Research and Resource Centre Changes to regulatory settings for financial products dealing with longevity Ross Clare Director of Research October 2013 ASFA Level 6 66 Clarence Street Sydney NSW 2000

More information

Smart strategies for maximising retirement income

Smart strategies for maximising retirement income Smart strategies for maximising retirement income 2010 Why you need to create a life-long income Australia has one of the highest life expectancies in the world and the average retirement length has increased

More information

How Family Law may affect your superannuation, life insurance and other investments

How Family Law may affect your superannuation, life insurance and other investments How Family Law may affect your superannuation, life insurance and other investments Issue Date 17 December 2004 Throughout this guide: REFERENCE TO: we or us member spouse non-member spouse owner spouse

More information

Taxpayers Australia Inc

Taxpayers Australia Inc Taxpayers Australia Inc Superannuation Australia (A wholly owned subsidiary of Taxpayers Australia Inc) Glossary of superannuation terms These terms are commonly used in the superannuation sector. Account-based

More information

AustChoice Super general reference guide (ACH.02)

AustChoice Super general reference guide (ACH.02) AustChoice Super general reference guide (ACH.02) Issued: 28 May 2015 This guide contains important information not included in the AustChoice Super PDS. We recommend you read this entire guide. The information

More information

Understanding retirement income Version 5.0

Understanding retirement income Version 5.0 Understanding retirement income Version 5.0 This document provides some additional information to help you understand the financial planning concepts discussed in the SOA in relation to understanding retirement.

More information

Challenger Guide to annuities

Challenger Guide to annuities Challenger Guide to annuities Secure your future with a safe, reliable income stream Table of contents About Challenger 1 Introduction 2 Retirement is different 3 About annuities 4 What is an annuity?

More information

Challenger Guaranteed Annuity

Challenger Guaranteed Annuity Challenger Guaranteed Annuity Product Disclosure Statement (PDS) Dated 13 June 2014 Challenger Guaranteed Annuity (SPIN CHG0005AU) Issuer Challenger Life Company Limited (ABN 44 072 486 938) (AFSL 234670)

More information

New Ways For High Net Worth Individuals

New Ways For High Net Worth Individuals New Ways For High Net Worth Individuals And Business Owners To Build Wealth Tax Effectively With Introduction A SMSF It may be that the SMSF is the absolute way of the future March 2010 Jeremy Cooper Head

More information

Challenger Guaranteed Allocated Pension

Challenger Guaranteed Allocated Pension Challenger Guaranteed Allocated Pension Product Disclosure Statement (PDS) Dated 1 January 2015 Challenger Retirement Fund Allocated Pension (SPIN CIT0101AU) (ABN 87 883 998 803) (RSE Registration Number

More information

Self-Managed Super Fund Basics and Buying Property with your SMSF Money

Self-Managed Super Fund Basics and Buying Property with your SMSF Money RETIRE WITH MORE Self-Managed Super Fund Basics and Buying Property with your SMSF Money YOUR GUIDE TO BUYING PROPERTY WITH YOUR SMSF MONEY $$$ Unit 1, 3 Robinson Place Rockingham WA 6168 admin@integratax.com.au

More information

Superannuation: dealing with life s changes

Superannuation: dealing with life s changes Booklet 2 Superannuation: dealing with life s changes MAStech Smart technical solutions made simple Contents Introduction 01 Introduction 03 Accessing your superannuation benefits 04 Conditions of release

More information

General reference guide

General reference guide General reference guide (TPS.01) Issued: 1 July 2015 The Portfolio Service Super Essentials The Portfolio Service Superannuation Plan The Portfolio Service Retirement Income Plan This guide contains important

More information

Understanding annuities Secure your future with a safe, reliable income stream

Understanding annuities Secure your future with a safe, reliable income stream Understanding annuities Secure your future with a safe, reliable income stream Contents Retirement today 1 Growing assets versus protecting assets 3 What is an annuity? 4 Types of annuities 7 Benefits

More information

AMP Eligible Rollover Fund

AMP Eligible Rollover Fund AMP Eligible Rollover Fund Fact sheet Issued 30 June 2014 Issued by AMP Superannuation Limited ABN 31 008 414 104, AFSL No. 233060, the Trustee of AMP Eligible Rollover Fund ABN 32 931 224 407. Registered

More information

Things you should know

Things you should know Westpac Group Plan Defined Benefit Pension (including Spouse pension) Product Disclosure Statement (PDS) Dated: 1 July 2014 Things you should know The Westpac Group Plan Defined Benefit pension provides

More information

SMSF Trustee Companion

SMSF Trustee Companion If you are thinking about setting up a SMSF, there are a number of decisions you will need to make regarding the structure, operation and management of your fund. To help you understand the process and

More information

Understanding Superannuation

Understanding Superannuation Understanding Superannuation Client Fact Sheet July 2012 Superannuation is an investment vehicle designed to assist Australians save for retirement. The Federal Government encourages saving through superannuation

More information

Changes to insurance provided by SMSFs. terminal medical condition. ATO approves courses for education directions

Changes to insurance provided by SMSFs. terminal medical condition. ATO approves courses for education directions Specialists in Self-Managed Superannuation Funds (02) 4225 7779 solutions@bwaccounting.net.au www.bwaccounting.net.au Keeping you informed In this issue: ATO SMSF Updates Trusteeship Individual or Company?

More information

SMSF insurance options and strategies

SMSF insurance options and strategies SMSF insurance options and strategies Agenda Will be looking at: Requirement to consider insurance Why hold insurance through an SMSF? Life Insurance Permanent Incapacity Temporary Incapacity. Requirement

More information

SELF MANAGED SUPERANNUATION

SELF MANAGED SUPERANNUATION SELF MANAGED SUPERANNUATION Position Yourself INFORMATION PACK INFORMATION PACK SELF MANAGED SUPERANNUATION FUNDS SMSF INFORMATION SHEET MAKING THE MOST OF YOUR SUPERANNUATION Self Managed Superannuation

More information

Simplifying Statements of Advice. Retirement strategy example SOA

Simplifying Statements of Advice. Retirement strategy example SOA Simplifying Statements of Advice Retirement strategy example 10 February 2009 Development of FPA example Statements of Advice () Financial planners, politicians, and regulators alike share the common goals

More information

Your Super Guide. Product Disclosure Statement 15 December 2014 Nestlé Super Insured Accumulation category. Contents. Important Information

Your Super Guide. Product Disclosure Statement 15 December 2014 Nestlé Super Insured Accumulation category. Contents. Important Information Australia Group Superannuation Fund Your Super Guide Product Disclosure Statement 15 December 2014 Nestlé Super Insured Accumulation category Contents 1 About Nestlé Super p2 2 How super works p2 3 Benefits

More information

6 Insurance as part of a self-managed superannuation fund s investment strategy By Julie Steed, Technical Services Manager

6 Insurance as part of a self-managed superannuation fund s investment strategy By Julie Steed, Technical Services Manager IOOF AdviserConnect IOOF TechConnect Quarterly technical bulletin: Autumn 2013 1 Best interest duties life insurance in super By Martin Breckon, Technical Services Manager 6 Insurance as part of a self-managed

More information

Understanding Retirement Planning

Understanding Retirement Planning Version 4.0 Preparation Date: 2 November 2009 This document provides some additional information to help you understand the financial planning concepts discussed in the SOA in relation to retirement planning.

More information

Challenger Adviser support tools

Challenger Adviser support tools Adviser support tools Brochures Calculators Webcasts and animation Always ready to provide support. We offer a range of retirement tools, calculators and resources online to help you ensure your clients

More information

Tax deductible superannuation contributions

Tax deductible superannuation contributions Tax deductible superannuation contributions TB 35 TECHNICAL SERVICES ISSUED ON 29 OCTOBER 2014 ADVISER USE ONLY VERSION 1.1 Summary Employers and certain individuals can claim a tax deduction for contributions

More information

Getting to know your SMSF Trust Deed

Getting to know your SMSF Trust Deed Getting to know your SMSF Trust Deed Trust Deed Age What are you missing out on? Regulatory change from OSS to SIS and Corps Act Related parties 3 year binding death benefit nominations Contribution splitting

More information

4102 Strategist SMSF. sample only. Strategist SMSF Trust Deed, PDS & Rules. Prepared for: Reckon Docs Pty Ltd

4102 Strategist SMSF. sample only. Strategist SMSF Trust Deed, PDS & Rules. Prepared for: Reckon Docs Pty Ltd 4102 Strategist SMSF Strategist SMSF Trust Deed, PDS & s Prepared for: Reckon Docs Pty Ltd 4102 Strategist SMSF Strategist SMSF Trust Deed, PDS & s Prepared by: A Living Super Deed Robert Richards & Associates

More information

Major Reasons for a Self Managed Superannuation Fund ( SMSF ) Trustee(s) Australian Taxation Office ( ATO )

Major Reasons for a Self Managed Superannuation Fund ( SMSF ) Trustee(s) Australian Taxation Office ( ATO ) Major Reasons for a Self Managed Superannuation Fund ( SMSF ) # Members control an SMSF and (subject to sole purpose test and other restrictions of Australian law) can choose investments (including own

More information

Getting the best out of your superannuation savings

Getting the best out of your superannuation savings Booklet 1 Getting the best out of your superannuation savings MAStech Smart technical solutions made simple Contents Introduction 01 Introduction 03 Saving through super 08 How a super fund works 09 How

More information

Understanding superannuation Version 5.0

Understanding superannuation Version 5.0 Understanding superannuation Version 5.0 This document provides some additional information to help you understand the financial planning concepts discussed in the SOA in relation to superannuation. This

More information

LifeTrack Personal Superannuation

LifeTrack Personal Superannuation This product disclosure statement has been produced for the successor fund transfer of existing members of the LifeTrack Superannuation Fund to the IOOF Portfolio Service Superannuation Fund. LifeTrack

More information

ADVANCE RETIREMENT SAVINGS ACCOUNT Annual Report for year ended 30 June 2014. Issued by BT Funds Management Limited ABN 63 002 916 458 AFSL 233724

ADVANCE RETIREMENT SAVINGS ACCOUNT Annual Report for year ended 30 June 2014. Issued by BT Funds Management Limited ABN 63 002 916 458 AFSL 233724 ADVANCE RETIREMENT SAVINGS ACCOUNT Annual Report for year ended 30 June 2014 Issued by BT Funds Management Limited ABN 63 002 916 458 AFSL 233724 CONTENTS Introduction... 1 Recent developments in superannuation...

More information

What Is A "Self-Managed Superannuation Fund"? Introduction. What is a SMSF?

What Is A Self-Managed Superannuation Fund? Introduction. What is a SMSF? What Is A "Self-Managed Superannuation Fund"? Introduction This memorandum explains what self-managed superannuation funds are, how they are regulated, what laws apply, who sets them up and what their

More information

RBF family law. This brochure covers the treatment of your RBF super for family law purposes. Contents Introduction

RBF family law. This brochure covers the treatment of your RBF super for family law purposes. Contents Introduction RBF family law This brochure covers the treatment of your RBF super for family law purposes Contents Introduction 2 If a couple separates or divorces must super be split? Can all super be split? Who can

More information

Investment bonds. Summary. Who may benefit from an investment bond? TB 33

Investment bonds. Summary. Who may benefit from an investment bond? TB 33 TB 33 Investment bonds Issued on 1 July 2013. Summary There are a wide range of investments to choose from in today s market. One option is an investment bond which is a life insurance policy purchased

More information

IFSA Guidance Note No. 21.00

IFSA Guidance Note No. 21.00 IFSA Guidance Note No. 21.00 Calculators Best Practice Guidance April 2007 Main features of this Guidance Note are: Highlight the importance of calculators in assisting users to make informed financial

More information

Super terms explained

Super terms explained Super terms explained Here is a useful reference guide to some of the terms we use with Super. The guide provides plain English information about Super, but does not give formal legal definitions. For

More information

PRODUCT DISCLOSURE STATEMENT. 02 9331 8664 admin@nowinfinity.com.au www.nowinfinity.com.au PO BOX 1409 Potts Point NSW 1335 ABN 16 154 927 376

PRODUCT DISCLOSURE STATEMENT. 02 9331 8664 admin@nowinfinity.com.au www.nowinfinity.com.au PO BOX 1409 Potts Point NSW 1335 ABN 16 154 927 376 PRODUCT DISCLOSURE STATEMENT 02 9331 8664 admin@nowinfinity.com.au www.nowinfinity.com.au PO BOX 1409 Potts Point NSW 1335 ABN 16 154 927 376 SMSF Product Disclosure Statement CONTENTS SMSF Product Disclosure

More information

Smart strategies for maximising retirement income 2012/13

Smart strategies for maximising retirement income 2012/13 Smart strategies for maximising retirement income 2012/13 Why you need to create a life long income Australia has one of the highest life expectancies in the world and the average retirement length has

More information

Super and estate planning

Super and estate planning Booklet 4 Super and estate planning MAStech Smart technical solutions made simple Contents Introduction 01 Introduction 03 Making a start 04 What happens to your superannuation benefits after your death?

More information

Your retirement options. Making the most of your retirement

Your retirement options. Making the most of your retirement Your retirement options Making the most of your retirement Your retirement your choice Retirement it s an exciting time, but it s a challenging time. So many choices, so many possibilities so how do you

More information

The benefits of insuring through super. Macquarie Life

The benefits of insuring through super. Macquarie Life The benefits of insuring through super Macquarie Life While your clients are accumulating wealth, they also need to ensure adequate insurance cover is in place so they and their families are looked after

More information

Supplementary Product Disclosure Statement

Supplementary Product Disclosure Statement AMA Financial Services Medical & Associated Professions Superannuation Fund a sub-plan of IOOF Employer Super Employer and Personal Super Supplementary Product Disclosure Statement Dated: 1 June 2014 Issuer:

More information

ESTABLISHING AN SMSF STEPS INVOLVED AND ISSUES TO BE CONSIDERED

ESTABLISHING AN SMSF STEPS INVOLVED AND ISSUES TO BE CONSIDERED Individuals face a number of considerations in deciding to establish a Self Managed Superannuation Fund (SMSF). This article considers some of those considerations and outlines some of the steps involved.

More information

How super is taxed. About this document. Tax on concessional contributions. Concessional contribution tax rates from 1 July 2015:

How super is taxed. About this document. Tax on concessional contributions. Concessional contribution tax rates from 1 July 2015: How super is taxed Date of issue: 1 July 2015 mtaasuper.com.audate Phone: 1300December 362 415 2014 Fax: 1300 365 142 of issue: The information in this document forms part of the Product Disclosure Statement

More information

Smart strategies for reducing aged care costs 2012/13

Smart strategies for reducing aged care costs 2012/13 Smart strategies for reducing aged care costs 2012/13 Get the care you need at a lower cost Aged care costs can be very high and could increase as our population ages. The accommodation bond alone averages

More information

COMMINSURE LIFETIME INCOME ANNUITY.

COMMINSURE LIFETIME INCOME ANNUITY. COMMINSURE LIFETIME INCOME ANNUITY. A retirement income solution now with a Death Benefit Guarantee. A CommInsure Lifetime Income Annuity now offers even more comfort, protection and value with a Death

More information

MLC MasterKey Super & Pension Fundamentals MLC MasterKey Super & Pension How to Guide

MLC MasterKey Super & Pension Fundamentals MLC MasterKey Super & Pension How to Guide MLC MasterKey Super & Pension Fundamentals MLC MasterKey Super & Pension How to Guide Preparation date 1 July 2015 Issued by The Trustee, MLC Nominees Pty Limited (MLC) ABN 93 002 814 959 AFSL 230702 The

More information

HOW TO BUY PROPERTY WITHIN YOUR SELF-MANAGED SUPERANNUATION FUND

HOW TO BUY PROPERTY WITHIN YOUR SELF-MANAGED SUPERANNUATION FUND HOW TO BUY PROPERTY WITHIN YOUR SELF-MANAGED SUPERANNUATION FUND COPYRIGHT All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or

More information

Introduction for paying benefits from an SMSF. Paying benefits from a self-managed super fund

Introduction for paying benefits from an SMSF. Paying benefits from a self-managed super fund Introduction for paying benefits from an SMSF Paying benefits from a self-managed super fund NAT 74124-04.2013 Our commitment to you We are committed to providing you with accurate, consistent and clear

More information

MACQUARIE LIFETIME INCOME GUARANTEE POLICY

MACQUARIE LIFETIME INCOME GUARANTEE POLICY MACQUARIE LIFETIME INCOME GUARANTEE POLICY series 1: Product disclosure statement issued 8 march 2010 Important NOTICE This Product Disclosure Statement ( PDS ) is dated 8 March 2010 and together with

More information

IOOF Employer Super. Pension. Product Disclosure Statement. Staff Superannuation Plan. Dated: 31 October 2014. a sub-plan of IOOF Employer Super

IOOF Employer Super. Pension. Product Disclosure Statement. Staff Superannuation Plan. Dated: 31 October 2014. a sub-plan of IOOF Employer Super IOOF Employer Super IOOF Employer Super Pension Product Disclosure Statement Dated: 31 October 2014 Staff Superannuation Plan a sub-plan of IOOF Employer Super Prepared by IOOF Investment Management Limited.

More information

SUPERANNUATION. Home Insurance. Super fundamentals. Foundations for your future

SUPERANNUATION. Home Insurance. Super fundamentals. Foundations for your future SUPERANNUATION Home Insurance Super fundamentals Foundations for your future As one of your most important financial investments, it s worth understanding how superannuation works. For many Australians,

More information

Challenger Guaranteed Income Fund (For IDPS investors)

Challenger Guaranteed Income Fund (For IDPS investors) Guaranteed Income Fund (For IDPS investors) Product Disclosure Statement (PDS) Dated 27 April 2012 Challenger (ARSN 139 607 122) Responsible Entity Challenger Retirement and Investment Services Limited

More information

Product Disclosure Statement

Product Disclosure Statement AMP Retirement Savings Account Product Disclosure Statement Contents 1. About AMP Retirement Savings Account 2. How super works 3. Benefits of investing with AMP Retirement Savings Account 4. Risks of

More information

SUPERANNUATION FUNDS

SUPERANNUATION FUNDS SUPERANNUATION FUNDS. I note that you provide two different types of superannuation funds. Can you tell us what the differences are between them? 2. Are the deeds updated for the new legislation? 3. Why

More information

Challenger Lifetime annuities

Challenger Lifetime annuities Challenger Lifetime annuities Regular and secure income for life Challenger Lifetime annuities A Challenger lifetime annuity is a secure investment that protects your savings and can provide an income

More information

Family law and superannuation

Family law and superannuation Family law and superannuation Fact sheet This fact sheet looks at the process of splitting a superannuation benefit under the family law process and the types of benefits that may be affected, including

More information

Macquarie Longevity Solutions. Macquarie Lifetime Income Guarantee

Macquarie Longevity Solutions. Macquarie Lifetime Income Guarantee Macquarie Longevity Solutions Macquarie Lifetime Income Guarantee How can Macquarie help? The Macquarie Lifetime Income Guarantee Policy provides you with a flexible, low cost investment which guarantees

More information

Taking control of your superannuation. Good SMSF Advice helps business owners achieve their goals.

Taking control of your superannuation. Good SMSF Advice helps business owners achieve their goals. Taking control of your superannuation Good SMSF Advice helps business owners achieve their goals. Are you in the right superannuation structure? Many Australians outsource the management of their superannuation

More information

Your guide to a total solution Ascend self managed super

Your guide to a total solution Ascend self managed super Your guide to a total solution Ascend self managed super The big picture ISSUE 2 - SEPTEMBER 2009 Components of an SMSF If one member only If 2 to 4 members What is a self managed super fund? Member trustee

More information

Lump sum benefit payment request for your superannuation or account based pension

Lump sum benefit payment request for your superannuation or account based pension Lump sum benefit payment request for your superannuation or account based pension How to claim a benefit To claim a benefit you will need to complete the attached Benefit Payment Request and send it direct

More information

Reliance Super. Taxation Supplement. 14 March 2014. a membership category of Maritime Super

Reliance Super. Taxation Supplement. 14 March 2014. a membership category of Maritime Super Taxation Supplement 14 March 2014 Contents Tax on contributions 2 Tax on rollovers 3 Tax on investment earnings 3 Tax on super benefits 3 Spouse tax offset 7 Tax deductions for the self-employed 7 Low

More information

Setting up a self-managed super fund

Setting up a self-managed super fund Introduction for people setting up an SMSF Setting up a self-managed super fund What you need to know to set up a self managed super fund NAT 71923-11.2013 NAT 72579-03.2013 NAT 71454 03.2013 COVER ICON

More information

What is Superannuation and how do Self Managed Superannuation Funds Work?

What is Superannuation and how do Self Managed Superannuation Funds Work? What is Superannuation and how do Self Managed Superannuation Funds Work? Superannuation is a long-term arrangement that operates primarily to provide income in retirement. Superannuation involves employers,

More information

CUBS SUPERANNUATION FUND Trust Deed. The Trust Company (Superannuation) Limited (Trustee)

CUBS SUPERANNUATION FUND Trust Deed. The Trust Company (Superannuation) Limited (Trustee) CUBS SUPERANNUATION FUND Trust Deed The Trust Company (Superannuation) Limited (Trustee) Table of contents Part 1A - The Cubs Superannuation Trust... 1 Section 1 - Normal Operation of the Fund... 1 1 Joining

More information

A DIFFERENT KIND OF WEALTH MANAGEMENT FIRM. www.jaswealth.com.au. Superannuation 101. Everything you always wanted to know but were too afraid to ask

A DIFFERENT KIND OF WEALTH MANAGEMENT FIRM. www.jaswealth.com.au. Superannuation 101. Everything you always wanted to know but were too afraid to ask A DIFFERENT KIND OF WEALTH MANAGEMENT FIRM www.jaswealth.com.au Superannuation 101 Everything you always wanted to know but were too afraid to ask What is Superannuation? Superannuation 101 Contents What

More information

THE SUPER BRIEF. UPDATE!!!! ATO knocks back use of SMSF s to fund Buy/ Sell Agreement Life Insurance NEWSLETTER. page 1. ISSUE - October 2014

THE SUPER BRIEF. UPDATE!!!! ATO knocks back use of SMSF s to fund Buy/ Sell Agreement Life Insurance NEWSLETTER. page 1. ISSUE - October 2014 ISSUE - October 2014 THE SUPER BRIEF UPDATE!!!! ATO knocks back use of SMSF s to fund Buy/ Sell Agreement Life Insurance Clients often use an SMSF to hold life insurance when setting up a Buy Sell Agreement

More information

SMSF Contributions Getting Assets into your SMSF

SMSF Contributions Getting Assets into your SMSF Getting Assets into your SMSF Agenda What is a contribution? When is a contribution made? In-Specie transfer of assets Contribution caps Contribution strategies How can we help? What is a Contribution?

More information

Planning for retirement

Planning for retirement Planning for retirement 1 Disclaimer This presentation contains general advice current as at April 2016 and has been prepared without taking account of your objectives, financial situation or needs. Before

More information

2013 Benefit Statement Notes

2013 Benefit Statement Notes 2013 Benefit Statement Notes At 30 June 2013 Important information The Board of Trustees of the State Public Sector Superannuation Scheme (ABN 32 125 059 006) (QSuper Board) is required to provide you

More information

Self Managed Super Fund Service

Self Managed Super Fund Service Self Managed Super Fund Service Product Disclosure Statement Issued by the trustees Issue date: 15 April 2010 Prepared by Smartsuper Pty Ltd ABN 47 003 822 339 AFS Licence 247120 PO Box 529 North Sydney

More information

Self Managed Super Funds

Self Managed Super Funds Self Managed Super Funds www.powersmsf.com.au BRISBANE 10/ 8 Metroplex Ave Murarrie QLD 4172 PO Box 518 Cannon Hill QLD 4170 P 07 3906 2888 F 07 3906 2889 BILOELA 54 Callide Street Biloela QLD 4715 PO

More information

FAMILY SUPER FUND (SMSF) NEWSLETTER

FAMILY SUPER FUND (SMSF) NEWSLETTER SPRING 2014 Super Legislation Update Key Measures A number of key superannuation measures are due to commence from 1 July 2014, as outlined below. The measures due to start from this time include the following:

More information

SMSF Solutions for Advisers & Accountants.

SMSF Solutions for Advisers & Accountants. SMSF Solutions for Advisers & Accountants. 1 November 2015 www.multiport.com.au Multiport Pty Ltd ABN 76 097 695 988 AFS LICENCE NO: 291195 Contents Taking the hassle out of SMSF administration and compliance

More information

Adviser. Technical Update

Adviser. Technical Update Adviser Informa on Technical Update Best Interest Du es - Life Insurance In Super The best interest duty required under FoFA became applicable on 1 July 2013. This will add a new level of complexity to

More information

Telstra Super Personal Plus

Telstra Super Personal Plus 01/ 17 NOVEMBER 2015 PRODUCT DISCLOSURE STATEMENT Telstra Super Personal Plus Making the most of your future Contents 01 About Telstra Super and Telstra Super Personal Plus 02 02 How super works 02 03

More information

Smart strategies for your super

Smart strategies for your super Smart strategies for your super 2010 Make your super count Superannuation is still one of the best ways to accumulate wealth and save for your retirement. The main reason, of course, is the favourable

More information

SMSFs and Estate Planning. SMSFs and Estate Planning February 2007

SMSFs and Estate Planning. SMSFs and Estate Planning February 2007 SMSFs and Estate Planning Disclaimer Please note that this presentation is to be considered general advice only. The material and the opinions of the presenter should not be relied upon to make decisions.

More information

Additional Information Booklet

Additional Information Booklet SuperWrap Additional Information Booklet Dated 20 November 2015 This Additional Information Booklet ( Booklet ) has been prepared by the issuer of SuperWrap: BT Funds Management Limited ABN 63 002 916

More information

Super taxes, caps, payments, thresholds and rebates

Super taxes, caps, payments, thresholds and rebates Fact Sheet Super taxes, caps, payments, thresholds and rebates This fact sheet provides a useful one-stop reference guide to the tax rates, caps, thresholds and rebates that apply or are related to superannuation

More information

SMSF strategy paper TB 95. Summary. In-specie transfers. Contents SMSF STRATEGY

SMSF strategy paper TB 95. Summary. In-specie transfers. Contents SMSF STRATEGY TB 95 SMSF strategy paper Issued on 26 September 2012. Summary Self managed superannuation funds (SMSFs) have enjoyed a rapid rise in popularity in recent years. Much of the excitement can be attributed

More information

Making the Most of Your Super

Making the Most of Your Super Making the Most of Your Super For many people, super is one of the best ways to accumulate wealth. The Government provides tax benefits to encourage people to fund their own retirement. With more Australians

More information

Westpac Guaranteed Income Plan Policy Document

Westpac Guaranteed Income Plan Policy Document Westpac Guaranteed Income Plan Policy Document This document sets out the terms and conditions of your Policy. Please contact our Customer Relations Centre on 131 817 if you have any questions on this

More information

BT Lifetime. Personal Super. Contents. 1. About BT Lifetime Personal Super 2 2. How super works 2 3.

BT Lifetime. Personal Super. Contents. 1. About BT Lifetime Personal Super 2 2. How super works 2 3. Contents BT Lifetime Personal Super Product Disclosure Statement (PDS) Dated 1 July 2014 1. About BT Lifetime Personal Super 2 2. How super works 2 3. Benefits of investing with BT Lifetime Personal Super

More information

End of financial year planning tips May 2014

End of financial year planning tips May 2014 End of financial year planning tips May 2014 With the end of the financial year fast approaching, it is a good time to review financial planning strategies with a view to optimising your outcomes. This

More information

Introduction for paying benefits from an SMSF. Paying benefits from a self-managed super fund

Introduction for paying benefits from an SMSF. Paying benefits from a self-managed super fund Introduction for paying benefits from an SMSF Paying benefits from a self-managed super fund NAT 74124-06.2013 NAT 72579-03.2013 NAT 11032-04.2013 NAT 71923-04.2013 NAT 8107-08.2012 Our commitment to you

More information

Financial planning strategies insurance bonds

Financial planning strategies insurance bonds Financial planning strategies insurance bonds Produced by IOOF Technical Advice Solutions Adviser use only not for distribution to clients This brochure has been issued by IOOF Investment Management Limited,

More information

Paying Superannuation Death Benefits All Australian Funds 1. Lump Sum Member s Deceased Estate 2. Lump sum Dependants

Paying Superannuation Death Benefits All Australian Funds 1. Lump Sum Member s Deceased Estate 2. Lump sum Dependants Paying Superannuation Death Benefits All Australian Funds As a consequence of the sole purpose test (see section 62 of the Superannuation Industry Supervision Act 1993 (the SIS Act ) and the accompanying

More information

Self Managed Super Fund (SMSF) Limited Recourse Loans

Self Managed Super Fund (SMSF) Limited Recourse Loans Self Managed Super Fund (SMSF) Limited Recourse Loans Memorandum Have you been searching for someone you can trust to assist with arranging both the finance and legal structure that accompanies limited

More information