1 The Increased Tax on Lump Sum Termination Payments By Ray Stevens (USA) INTRODUCTION In May, 1983, the Government announced increases in the taxation payable on lump sum superannuation benefits and on certain lump sum payments by employers. After some significant modifications to the original proposals, the Bill to implement the changes was presented to Parliament on 30th May, 1984 and became law on 25th June, However, most of its provisions are effective from 1st July, Lump sum payments to which the new arrangements apply include the following where payment was made on or after 1st July, 1983: From Superannuation Funds (whether employer-sponsored or not) - on age retirement - on invalidity retirement - on resignation or dismissal - on termination due to redundancy - on portion of death benefit where included in estate not distributed solely to dependants - on commutation of a pension - residual payments on termination of a pension - other lump sum payments permitted by fund rules From Employers - on retirement ("golden handshakes") - on redundancy (severance payments) - contractual termination payments - in lieu of unused sick leave - in compensation for loss of office or employment From Other Sources - on withdrawal from "approved deposit fundsw (to be set up as part of the new arrangements) - on commutation of an annuity - residual payments on termination of an annuity. The legislation refers to these payments as "Eligible Termination Payments", presumably because they are eligible to be taxed under the new rules. This paper concentrates on lump sum benefits paid from employer-sponsored superannuation funds, but similar principles apply to the other payments.
2 PRINCIPLE BEHIND THE CHANCES The principle behind the changes is that all income from employment should be taxed, but only once. Salary and wage payments are taxed at the time they are made. With superannuation, however, timing differences between the provision of the,income and the receipt "of the income create alternative methods of imposing tax. e.g (1) (2) i When an employer contributes to a fund for the future benefit of an employee, tax can be imposed either by including the contribution in the employee's income when the contribution is paid, or by taxing that part of the benefit when the benefit is paid. Investment income can be taxed when earned by the fund, or the part of a benefit arising from investment income can be taxed when the benefit is paid. This principle is not new and applies in most Western countries. In Australia it has applied in the past to pension benefits. No tax has been imposed when an employer contributes to a fund or when a fund earns investment income, but when the employee retires and receives a pension, the pension income has been taxed. However, in Australia we have previously had the almost unique provision for the whole of a retirement benefit to be taken as a lump sum. Only 5% of such a benefit has been included in taxable income, so that when the maximum marginal tax rate has been 60%, the maximum tax which could be incurred has been 3% of :he benefit. Some countries have taxed lump sums lightly, but placed restrictions on their availability. The main change introduced by t he new legislation is to impose a much higher tax on lump sum benefits. In applying the above principle, the following concessions have been allowed: Benefits attributable to periods of employment prior to 1st July, 1983 will continue to be taxed on the old 5% basis. Most death benefits will continue to be exempt from tax. Part of a benefit paid because of redundancy, invalidity retirement, or retirement under a special early retirement scheme, will be taxed on the old 5% basis. The maximum tax rate imposed is 30%, rather than the employee's marginal tax rate if greater.
3 CALCU LATION OF THE TAX Any lump sum termination payment received on or after 1st July, 1983 from an employer or an employer-sponsored fund will be split into the following components and taxed on the basis shown: COMPONENT A. Part attributable to employment prior to 1st July, 1983, other than the portion included in C B. Amount contributed by employee after 30th June, 1983 C. Increase due to redundancy or special early retirement scheme D. Part attributable to employment after 30th June, 1983, other than B and portion included in C E. Part of Invalidity benefit attributable to potential employment period lost because of invalidity retirement. TAX BASIS 5% included in taxable income Exempt 5% included in taxable income Taxed at 30%, except that first $50,000 of this component received after age 55 is taxed at 15% 5% included in taxable income Employee contributions after 30th June, 1983 are exempt on the principle that these have been paid out of income which has already been taxed and the amount must not therefore be taxed again. The fact that in some cases a rebate may have been obtained for part of the contributions is ignored. (Exemption does not apply to contributions paid under personal superannuation arrangements by self-employed persons, or employees not covered by an employer-sponsored fund, where a tax deduction has been allowed for those contributions.) THE BEFOREIAFTER 1ST JULY, 1983 SPLIT For an employee who commenced employment prior to 1st July, 1983, the benefit is split into its components pro rata to the periods of employment before 1st July, 1983 and on and after 1st July, Each period is measured in days. (Under personal superannuation arrangements, the split is based on the periods of membership of the fund.)
4 The Commissioner has discretion to increase, but not reduce, the amount attributed to employment before 1st July, 1983 by this formula, having regard to the dollar amount of the benefit accumulated or accrued at that time. This could be relevant in cases.where the benefit does not accrue evenly - e.g. due to a change from full-time to part-time employment, or in schemes which allow members a choice of contribution levels with the opportunity to switch from one level to another from time to time. If a resignation benefit is being paid, the Commissioner will have regard to the resignation benefit at If a redundancy benefit is being paid, the Commissioner will have regard to the redundancy benefit at In the case of a retirement benefit he will have regard to the notional retirement benefit at even though the employee may not then have reached an age at which a retirement benefit was available. A SIMPLE EXAMPLE Consider an employee who retires and receives a lump sum benefit from the employer's superannuation fund and to whom the following particulars apply: Employment Commenced: 1/7/1973 Joined Superannuation Fund: 1/7/1975 Age at Retirement: 60 years Retirement Date 30/6!2003 Benefit Received: $90,000 Employee Contributions after : $20,000 Marginal Tax Rate: 30% This employee was in service for 30 years in all, of which 10 years were prior to 1/7/83 and 20 years were subsequent to that. Note that the date of joining the superannuation fund is not relevant. Also note these periods of service must in practice be calculated in days, but years have been used here to illustrate the principles, and that where the benefit is not paid on the date of retirement the period between that date and the date of payment must generally be included in the period of "service". The calculation of the tax is as follows: COMPONENT A - Pre portion: = x $90,000 = $30,000 - TAX B - Employee contributions after : = $20,000 Nil D - Post taxable portion: = (20130 x $90,000) - $20,000 = $40,000 Total tax on new basis = $6,450 Total tax on previous basis = 30% x 5% x $90,000 = $1,350
5 The tax amounts shown above exclude the Medicare levy. In 1984/85 this would be: 1% of (5% of $30,000) + 1% of $40,000 = $415 Note that - ( i) (ii) (iii) (iv) The "date employment commenced" is not necessarily the date of commencing work with the current employer. Where there have been take-overs and acquisitions in the past, one can go back through reconstructions provided one does not go back beyond a point when a superannuation benefit was taken in cash - because that must have been the benefit for employment up to that point. Where a benefit is received after age 55, the 15% tax rate applies to the first $50,000 of Component D, not the first $50,000 of the total benefit. In this example the benefit is $90,000 but no part of the benefit is taxed at a rate higher than 15%. The 15% rate does not apply to the first $50,000 of &benefit, it applies to the first $50,000 (of Component D) of all benefits received after age 55. Benefits received from both the employer and the fund, and from other employers and funds must therefore be taken into account. It is possible for Component D to be negative, particularly in the next few years for cases where the employee did not join the fund until some years after joining service. In this event the negative balance is used to reduce Component A, so that an amount equal to employee contributions paid after 30/6/83 is always exempt from tax. BENEFITS ELIGIBLE FOR CONCESSIONS Redundancy Benefits The amount by which the benefit has been increased because termination was due to redundancy is eligible for concessional treatment. This does not necessarily mean the excess over the benefit the employee would have had theright to receive on voluntary termination. Where it has become established practice to use a discretion in a particular way, that must be allowed for. Where early retirement requires employer approval, but approval is in practice virtually automatic, only the excess over the early retirement benefit is eligible for concessional treatment. To calculate tax on a redundancy benefit, the portion eligible for concessional treatment (Component C) is first deducted from the benefit. The balance is then split into pre and post 1/7/83 portions pro rata to service in the manner shown in the earlier example.
6 Approved Early Retirement Schemes In recent years a number of employers have restructured or- reduced their staff by offering say all employees over a certain age special benefits if they elect to retire early within a specified period. The amount by which the early retirement benefit usually payable is increased under such a scheme is eligible for concessional treatment. Tax is calculated in the same way as for redundancy benefits. To qualify for the concessional treatment the scheme must satisfy three conditions: (i) The scheme must be open to all employees in a defined category - e.g. all employees over a certain age, all employees with a particular occupational skill, or all employees at a particular location. (ii) The scheme must have the aim of restructuring operations in some way - e.g. replacing employees with a particular skill with employees having a different skill, ceasing particular operations, or relocating operations. (iii) The scheme must have the prior approval of the Commissioner of Taxation as being an "approved early retirement schemet1. The Commissioner has some power to grant retrospective approval, par titularly for schemes implemented before the provisions became law on 25/6/84. 'Invalidity Benefits These benefits are given concessional treatment by including the period of potential service lost because of invalidity retirement when splitting the benefit into its components. As an example consider an employee who receives an invalidity retirement benefit of $90,000 at age 50, and who had 10 years of service prior to 1/7/83, 5 years of service after 30/6/83 and would have had a further 15 years of service had invalidity not prevented the employee continuing to the normal retiring age of 65. Assume employee contributions paid after 30/6/83 are $5,000 and the employee's marginal tax rate is 30%. The following calculation illustrates the principle behind the tax on an invalidity retirement benefit:
7 COMPONENT TAX A - Pre 1/7/83 portion: = x $90,000 = $30,000 B - Employee contributions after : = $5,000 Nil D - Post taxable portion: 30% x $10,000 = (5130 x $90,000) - $5,000 = $3,000 = $l0,000 E - Lost service portion: = 15/30 x $90,000 = $ Total tax on new basis = $4,125 Total tax on previous basis = 30% x 5% x $90,000 = $1,350 However, in practice the concessional component E is calculated using the period from the day after that on which the employee ceased active employment. The balance of the benefit is then split using the period of "service" including (generally) the period up to the date the benefit is paid. Accordingly the following calculation procedure must be used. In this case it has been assumed the benefit is paid on the day active employment ceases (30/6/88). This would be most unlikely to be the situation in practice but the figures illustrate that the tax would be identical to that shown abov; were it not for the two dates involved. COMPONENT E - Lost service portion: = 15/30 x $90,000 = $45,000 A - Pre 1/7/83 portion: = 10/15 x ($90,000 - $45,000) = $30,000 B - Employee contributions after : = $5,000 Nil D - Post taxable portion: = 5/15 x ($90,000 - $45,000) - $5,000 = $lo,ooo Total tax on new basis = $4,125
8 The definition of invalidity is termination "by reason of the taxpayer's physical or mental incapacity to engage in that employment". Benefits eligible for this concession will not therefore be limited to those meeting the typical "total and permanent disablement" definition included in superannuation fund trust deeds. Death Benefits Tax-exempt superannuation funds can only pay death benefits to the dependants of a deceased member or to the estate. Benefits paid to dependants are exempt from tax. For this purpose the spouse of the member and any child (regardless of age) of the member is automatically regarded as a dependant. However, where payment is made to the estate these may not be fully exempt from tax as in the past. The Commissioner has power to tax part of the benefit, having regard to the extent to which dependants are expected to benefit from the estate. Where tax is payable, the gross amount will be calculated in the same way as would apply to a termination payment. This will then be reduced by the Commissioner according to his view of the extent to which dependants will benefit from the estate. This unfortunate provision will create administrative problems for trustees, executors and the Taxation Office. Trustees are required to make PAYE tax deductions from a death benefit where it is paid to the estate. They can apply for per mission to deduct less than the gross amount by producing the will or other evidence of the manner in which the estate will be distributed. There is another unfortunate provision in respect of death benefits. Some funds provide for payment of a pension to :he spouse (andlor other dependants) when a member dies. If the spouse commutes this entitlement, the lump sum received will not be eligible for the same exemption as a lump sum death benefit. Instead it will be taxed in the same way as termination payments. If the fund rules are altered to give the spouse the choice between a lump sum benefit and a pension, the lump sum is exempt from tax. ROLL-OVER PROVISIONS AN D APPROVED DEPOSIT FU N DS The tax on all or part of a lump sum termination payment can be deferred by transferring ("rolling-over") the sum - (a) (b) into the superannuation fund of the new employer; or into an "approved deposit fund". The taxpayer has 90 days frorn the date of receipt of a benefit to effect a roll-over and thus avoid paying tax on the su m transferred. As a transitional arrangement, those who have received benefits since 1st July, 1983 have until 90 days after 25th June, This period expires on 23rd September, 1984, but is likely to be extended if a reasonable range of "approved deposit funds" has not become available by then.
9 Where a person transfers less than the full benefit, the person can nominate which parts of the sum transferred come from each of the components A, B, C and D described earlier. "Approved deposit funds" may be established by organisations such as life offices, banks, friendly societies, building societies, credit unions and trade unions. Provided the fund meets the prescribed requirements, its investment income will be tax free. This is not contingent on meeting requirements. Where a benefit is paid into an approved deposit fund, the depositor may withdraw all or any part of his credit at any time. Tax is paid on each withdrawal. This is calculated using the same procedure as the tax on a termination payment but counting the period the money has been in an approved deposit fund as well as the period of employment in splitting the benefit into its components. Where a benefit is "rolled-over" into the new employer's fund, the total benefit received on eventual termination of service is treated in aggregate for tax purposes. Both the period of employment with the old employer and that with the new employer are counted in splitting the benefit into its components. PENSIONS - COMMUTATIONS AND RESIDUAL PAYMENTS On cessation of a pension it is common to pay a lump sum where pension payments total less than (say) the member's contributions plus interest. These residual payments and amounts received on commutation of pensions are also subject to the new tax. When splitting the benefit into its components, the period during which the pension has been paid is counted. Where the pension had continued to the spouse or other dependant of a retired employee, this includes the period during which the pension was paid to the retired employee and the period of employment of the retired employee is also counted. PAYE REQUIREMENTS From 1st August, 1984, PAYE tax deductions must be made from any lump sum termination payment paid by a superannuation fund or an employer, unless the benefit is paid direct to another superannuation fund or to an approved deposit fund. Any person who makes 10 or more termination payments in any 12 month period commencing on or after 1st July, 1983 must, if not already registered, register as a group employer within 14 days of the end of that period. The first registrations were therfore due by 14th July, A person not required to register may elect to do so. The trustees of a superannuation fund may arrange for the sponsoring employer to act as their representative. This will probably be the most common option selected by small and medium size funds. The trustees must advise the tax office they have done this.
10 A life office or other organisation which administers one or more funds may also register as a representative of the trustees. The PAYE deduction will only apply to the part taxable on the 15%/30% basis. Deductions will actually be at rates of 16% and 31% to allow for the 1% Medicare levy. For payments after age 55, the trustees will not be required to take account of other payments which have been or are being paid in applying the 16% tax rate to the first $50,000. Any shortfall will be picked up in the employee's assessment. ANNUITIES AND PENSIONS Full details of these matters are outside the scope of this paper. The Government is trying to make the alternatives of taking a pension from a superannuation fund, or taking a lump sum and using it to buy an annuity, more attractive than in the past. Some of the changes made will reduce the tax paid by recipients of pensions and annuities. Other changes will assist organisations selling annuities to offer better terms. Those receiving pensions from a superannuation fund gain in two relatively minor ways: (a) (b) Previously the "undeducted purchase price" excluded employee contributions within the $1,200 per annum limit used for concessional expenditure rebate purposes. All employee contributions paid after 30th June, 1983 to an employer-sponsored fund will be eligible to be included. Of course an employee who commutes part of his pension entitlement may elect instead to use these to make part of his lump sum tax free. (Contributions paid under personal superannuation arrangements by self -employed persons, or employees not covered by an employer-sponsored fund, for which a tax deduction has been allowed, cannot be included in "undeducted purchase price".) When converting the "undeducted purchase price" to the equivalent annual amount, which becomes the portion of the annuity which is tax free, only the retired employee's expectation of life has been used, and the benefit of the deduction has ceased on the death of the retired ernployee even though pension payrnents might continue to the spouse or other dependants. In future the conversion will be based on a proper actuarial calculation of the period for which the pension is expected to be payable (based on standard life tables), and the deduction will be available for the full period during which the pension is payable. The second change will also benefit employees who take a lump sum and buy an annuity. However, whereas in the past the whole of the purchase price would in these circumstances be included in thevundeducted purchase price", this amount will in future exclude any part of the purchase price which comes from the component previously referred to as "D" - i.e. the portion which would be taxed on the 15%/30% basis if taken as a lump sum. This is consistent with the principle that this amount must be taxed at some stage.
11 " Changes which will assist sellers to offer better annuity terms are: (i) (ii) (iii) (iv) The investment income of that part of an organisation's funds which are related to annuities (other than deferred annuities not purchased with "rolled-overu lump sums) will be exempt from tax. The minimum valuation basis which required Life Offices to maintain unreasonably high reserves for annuity business will at last be changed. Indexed bonds will be made available to organisations selling annuities. The range of organisations which are permitted to sell annuities will be widened. The Government has also announced it proposes to alter the unfair treatment of annuities in the calculation of Social Security pension entitlements. It is likely that, as with taxation, part of the annuity will be treated as a return of capital and not counted as income. COST OF LIVING SUPPLEMENTS A number of employers with pension funds make ex-gratia supplementary payments to pensioners to compensate for all or some of the effects of increases in the cost of living. There have been disputes over whether such payments are taxable income, and recently taxpayers have had some success even where the payments have been quite regular. The revised legislation specifically provides that payments of this type made after 30th May, 1984 are part of taxable income. CHANGES TO TAXATION OF FU NOS Penalty for Non-Compliance with Superannuation funds approved under Section 23F and paragraph 23(ja) are exempt from tax on investment income if the fund complies with the "30/20" Government bond investment requirements. From 1st July, 1984 the rate of tax payable on investment income when these requirements are not complied with will reduce from 46% to 30%. Non-Exempt Funds (Section 121 DA) These funds have been used in particular to provide superannuation benefits in excess of those approved by the Commissioner of Taxation as reasonable for tax-exempt funds. Contributions to such funds by employers are not deductable and investment income has been taxed at a rate of 60%.
12 Although there will still be a type of fund subject to a 60% tax rate, virtually all Section 121 DA taxable superannuation funds will become Section 121 DAB funds and the investment income will be taxed at 46% from 1st July, As a deduction has not been allowed for employer contributions to these funds, it would be logical to exempt from tax a part of the benefit equal to these contributions. However the Government has stated this will not be allowed, and the reduction in the tax rate is in part recognition of the heavy tax burden which will be incurred by employers and employees in respect of benefits provided through such funds. Section 79 Funds These funds have been operated by banks, life offices and others to allow employees to supplement benefits from their employers' funds, or provide their own benefits where their employer does not operate a fund for them. These funds have been taxed on investment income in excess of 5% of the cost of assets. These funds become Section 23FB funds under the revised legislation. From 1st July, 1984 they will be exempt from tax on investment income, even though they are not required to comply with the "30/2OU requirements. In addition benefits will only be "locked in" under these funds until age 55 instead of age 60.
[05.05.19] Payments on Termination of an Office or Employment or a Change in its Functions Contents Sections 123 and 201, and Schedule 3 of the Taxes Consolidation Act, 1997 Updated April 2014 1. Introduction...3
Trust Deed QANTAS SUPERANNUATION PLAN Formerly the Qantas Airways Limited Staff Superannuation Plan TRUST DEED AND RULES Please note that the Trust Deed is a legal document. A detailed knowledge of superannuation
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
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
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
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
CLIENT FACT SHEET July 2010 Understanding superannuation and superannuation contributions Superannuation is an investment vehicle designed to assist Australians in saving for their retirement. The Government
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
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
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
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
It pays to belong TM Key Focus A tax of 15% applies to concessional (i.e. before tax) contributions. All employer and salary sacrifice contributions will be taxed at the top marginal rate if your super
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
SUMMARY OF RATES AND THRESHOLDS 2015/16 CONTENTS Superannuation rates and thresholds Concessional contributions Non-concessional contributions Capital Gains Tax (CGT) cap amount Untaxed plan cap amount
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.
1 July 2007 Redundancy A guide to the right choices Inside this guide Introduction What benefits will you receive? How are these benefits taxed? What to consider when receiving an employment termination
SALARY PACKAGING SUPERANNUATION GUIDE TO EMPLOYEES Superannuation Introducing Salary Packaging Salary packaging has been made available to all staff of the University through the Enterprise Agreement process.
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.
C Taxation C.1 Taxation of equity-based payments Australian taxation arrangements Equity-based payments are remuneration for employment services provided in the form of equity or rights (this could constitute
A brief guide to the pension provisions of the Family Law Acts www.pensionsauthority.ie The Pensions Authority Verschoyle House 28/30 Lower Mount Street Dublin 2 Tel: (01) 613 1900 Locall: 1890 65 65 65
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
Meeting with your Financial Planner: Helpful Directions Please consider the following before our meeting: Information we anticipate you will need to provide at our first consultation: Part 1 1. Your domestic
THE TAX INSTITUTE Tax Rates Table 2013-14 taxinstitute.com.au Individual income tax rates Residents 2012-13 2013-14 Taxable income Marginal rate Tax on this income $0 $18,200 Nil Nil $18,201 $37,000 19%
TB 40 Funding income protection and trauma insurance via Issued on 16 June 2014. Summary The tax concessions available for certain contributions can make it tax effective to fund income protection (salary
Structuring & Tax Ensuring your plans for your super become a reality By Ben Andreou Partner Head of Structuring & Tax December 2015 Table of Contents Page Why should you read this paper?... 3 Background...
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
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
Retirement Savings Account (RSA) Product Disclosure Statement (PDS) Incorporated (by reference) Information Booklet - Superannuation, Rollovers and Pensions. As at 24 September 2014 Issued by the Qantas
Guidance Notes and Circulars Superannuation Circular No. I.A.1 Contribution and Benefit Accrual Standards for Regulated Superannuation Funds September 2006 www.apra.gov.au Australian Prudential Regulation
Termination Pays Table of Contents Terminations... 2 Types of Terminations... 2 Notice Period of Termination... 2 Redundancy Weeks to pay... 3 What s included in a Termination?... 3 Employment Termination
July Supplement 2014 Rates of Tax 2013/14 Resident Individuals The following rates apply to individuals who are residents of Australia for tax purposes for the entire income year. 1 Tax Payable 2,3 0 18,200
General Manager Superannuation, Retirement and Savings Division The Treasury Langton Crescent PARKES ACT 2600 Dear Sir/Madam A PLAN TO SIMPLIFY AND STREAMLINE SUPERANNUATION Thank you for your invitation
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
Table of Contents Introduction... Distinctive Features of the Benefits Environment... Key Changes in Recent Years... 2 3 4 Statutory/Mandatory Programs... 5... 5 Retirement Benefits... 6 Death Benefits...
CPA AUSTRALIA TAX AND SOCIAL SECURITY GUIDE: 2014 2015 This guide is the initiative of the CPA Australia Retirement Savings Centre of Excellence. Information is current based on legislation as at 1 July
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.
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY SUPERANNUATION CIRCULAR NO I.C.4 EQUIVALENT RIGHTS FOR MEMBERS IN SUCCESSOR FUND TRANSFERS February 2001 DISCLAIMER AND COPYRIGHT NOTICE 1. The purpose of this
2016/17 Budget Superannuation reform changes 1. Effective Budget Night 7.30pm (AEST) 3 May 2016 1.1 New lifetime cap for non-concessional superannuation contributions The government will introduce a $500,000
From Issue 52, 2010-11 of Superannuation Quarterly, dated March 2011 In a nutshell... Tax deductions for SMSFs This article looks at various tax deductions that are available to a complying Self Managed
RETIREMENT SAVINGS ACCOUNT (RSA) Defence Bank Super Assured Retirement Savings Account Superannuation fee free. The way it should be for all Australians. General Information and Application Form Product
STATUTORY INSTRUMENTS. S.I. No. 582 of 2014 RULES FOR PRE-EXISTING PUBLIC SERVICE PENSION SCHEME MEMBERS REGULATIONS 2014 2  S.I. No. 582 of 2014 RULES FOR PRE-EXISTING PUBLIC SERVICE PENSION SCHEME
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
Retirement Savings Account (RSA) Product Disclosure Statement (PDS) Incorporated (by reference) Information Booklet - Superannuation, Rollovers and Pensions. As at 12 March 2012 Issued by the Qantas Staff
Product Disclosure Statement bcu Retirement Savings Account (Current as at August 20, 2014) Bananacoast Community Credit Union Ltd ABN 50 087 649 750 AFSL No. 241077 The information in this PDS is general
CPA Australia Tax and Social Security Guide: 2013-2014 This guide is the initiative of the CPA Australia Retirement Savings Centre of Excellence. Information is current based on legislation as at 1 July
4 May 2011 Mr Jonathon Rollings Principal Adviser Superannuation Financial System Division Department of Treasury Langton Crescent Parkes ACT 2600 By email: email@example.com Dear Jonathon
TABLE OF CONTENTS: PART A: EXAMPLES Compound interest calculations Example 1: Determine the future value of a single payment (lump sum)... 3 Example 2: Determine the annual rate of interest earned by an
401(k) Summary Plan Description WELLSPAN 401(K) RETIREMENT SAVINGS PLAN SUMMARY PLAN DESCRIPTION I I PRIOR TO II III I TABLE OF TO YOUR PLAN What kind of Plan is this? 5 What information does this Summary
THE SOCIETY OF ACTUARIES IN IRELAND ACTUARIAL STANDARD OF PRACTICE PRSA-5 PERSONAL RETIREMENT SAVINGS ACCOUNTS AND TRANSFERS FROM OCCUPATIONAL SCHEMES Classification Mandatory MEMBERS ARE REMINDED THAT
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
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
Employee Information Leaflet The Retained Firefighters Pension Settlement Introduction of the new modified pension arrangements APRIL 2014 This information leaflet sets out the pension benefits on offer
GN11A(ROI): CALCULATIONS REQUIRED UNDER THE FAMILY LAW ACT, 1995 OR THE FAMILY LAW (DIVORCE) ACT, 1996 Classification Practice Standard Legislation or Authority This Guidance Note must be read in conjunction
Financial Considerations for Early Retirement Schemes & Retirement Planning 19 September, 2013 The information contained within this presentation is intended to provide general advice only. It has been
NetActuary.com.au Retirement Solutions Actuaries TECHNICAL NOTE TRANSFERRING US 401K AND IRA ACCOUNTS TO AUSTRALIA ITEM 1. Introduction and Overview 2. US Fund Withdrawals 3. Types of US Retirement Funds
SR1 04/12 Cessation of employment Benefit application form Before you start Before you complete this benefit application form, please read the CSS Product Disclosure Statement. This form and the Explanatory
This section summarises the main Federal Government taxes that apply to superannuation at the time of preparation. For more information, contact MyLife MySuper on 1300 MYLIFE (695 433) or the Australian
RON GRAHAM AND ASSOCIATES LTD. 10585 111 Street NW, Edmonton, Alberta, T5M 0L7 Telephone (780) 429-6775 Facsimile (780) 424-0004 Email firstname.lastname@example.org How Can You Reduce Your Taxes? Tax Brackets.
THE XYZ Pension and Life Assurance Scheme Members Booklet January 2014 Edition For Employees of the XYZ Company Reviewed January 2014 CONTENTS Page 3 INTRODUCTION 4 TERMS USED IN THIS BOOKLET 7 GENERAL
Superannuation and Residency Fact Sheet - October 2014 A change in residence has significant implications for superannuation. A number of issues arise when an individual relocates overseas whether temporarily
Fact sheet RBF Tasmanian Accumulation Scheme Redundancy Important note This information is only for members of the RBF Tasmanian Accumulation Scheme. Please refer to the Membership Category as shown on
CSF27 04/12 Tax and your CSS benefit Who should read this? All contributing CSS members. What is in this fact sheet? > > What should I know up front? > > My benefits in the CSS > > How are contributions
SENTINEL RETIREMENT FUND RULES November 2013 TABLE OF CONTENTS PAGE 1. INTRODUCTION... 1 2. DEFINITIONS... 2 3. MEMBERSHIP... 8 4. CONTRIBUTIONS... 11 4.1 Contributions by MEMBERS and EMPLOYERS... 11 4.2
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
Chapter 32a Medical Care Savings Account Act 31A-32a-101 Title and scope. (1) This chapter is known as the "Medical Care Savings Account Act." (a) This chapter applies only to a medical care savings account
Optional Retirement Program (ORP) Summary Plan Description April 2012 Table of Contents Establishment............................................... 1 Eligibility...................................................
THE ITC BUY OUT BOND BROCHURE www.independent-trustee.com If you were the member of an occupational pension scheme, leaving or have left employment, or your pension scheme is being wound up, it is time
Guide for notice of intent to claim a tax deduction for personal super contributions 2014/2015 Under section 290-170 of the Income Tax Assessment Act 1997 Need Help? For more information about your eligibility
CPA AUSTRALIA TAX AND SOCIAL SECURITY GUIDE: 2015 2016 This guide is the initiative of the CPA Australia Retirement Savings Centre of Excellence. Information is current based on legislation as at 1 July
FirstTech Super guide 2010/11 FirstTech was ranked 1st by advisers for Technical Support in the 2010 Wealth Insights Fund Manager Service Survey. This Super guide has been developed to provide you with
Taxation of insurance payments through super Fact Sheet - October 2014 Insurances such as life, total and permanent disability (TPD) and income protection (IP) can be taken through super. The trustee of
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
Chapter 13 Benefits Payable upon Death Active Contributing Member Retired Member Other Considerations Beneficiary Designations Taxes Additional Information Application Procedures Benefits for Part-time
s of Tax 2011/12 Resident Individuals The following rates apply to individuals who are residents of Australia for tax purposes for the entire income year. 1 Tax Payable 2, 3 0 6,000 Nil 6,001 37,000 15
Rio Tinto Staff Superannuation Fund Guide 6 22 June 2012 Your death and disability benefits (Rio Tinto) The information in this document forms part of the Product Disclosure Statement for the Rio Tinto
THE TAX INSTITUTE Tax Rates Table 2014-15 taxinstitute.com.au Individual income tax rates Residents 2013-14 Taxable income Marginal rate Tax on this income $0 $18,200 Nil Nil $18,201 $37,000 19% 19c for
exchanging your pension for a lump sum Throughout this fact sheet: exchange is used to mean commutation of your pension to a lump sum apply or application are used to mean elect or election. Contents page
Our Vision Pensions Tax Reliefs To become the Best Provider of Solutions for Businesses in Coventry & Warwickshire Types of pension schemes There are two broad types of pension schemes from which an individual
Pensions - Tax Reliefs Types of pension schemes There are two broad types of pension schemes from which an individual may eventually be in receipt of a pension: Occupational schemes Personal Pension schemes.
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?