SMSF insurance options and strategies

Size: px
Start display at page:

Download "SMSF insurance options and strategies"

Transcription

1 SMSF insurance options and strategies

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

3 Requirement to consider insurance The Cooper Review found that only 13% of SMSFs have any form of insurance cover However, many SMSF members and Trustees are in pension phase and have no requirement for insurance But it is still important to understand how insurance proceeds are paid to members and their beneficiaries through an SMSF Especially important for younger SMSF members! There is also a legislative requirement to consider insurance for SMSF members.

4 Requirement to consider insurance SMSF Trustees are required to consider whether to hold insurance, such as life insurance, when they formulate the fund s investment strategy Trustees may evidence this requirement by documenting decisions in the fund s investment strategy or minutes of trustee meetings that are held during the income year Regulation 4.09 of the SIS Regulations (1994) is a prescribed standard applicable to the operation of superannuation entities Section 34 of the SIS Act (1993) provides that a person who intentionally or recklessly contravenes this standard is guilty of an offence Punishable by a fine not exceeding 100 penalty units ($18,000!).

5 Requirement to consider insurance Given the regulatory requirement and the fact younger SMSF members may be under-insured, what are the insurance options? Insurance through SMSF can provide coverage against an insured event: Death. Disability. Terminal Illness. Loss of income.

6 Life insurance SMSF may hold life insurance proceeds that may be paid out tax free to a death benefits dependant Proceeds may be taxed at up to 30% (plus Medicare Levy) where they are paid to a non-dependant But purchasing life insurance through a superannuation fund may mean premiums are deductible under s (ITAA 1997) Should be weighed up against the possible tax consequences applying to proceeds of a life insurance policy if paid to a non-dependant.

7 Life insurance Life insurance proceeds increase the taxable component (untaxed element) i.e. no Contributions Tax has been paid on these proceeds Only a spouse, disabled child, person with an inter-dependant relationship, financial dependant or minor child can take a death benefit as a pension An independent adult child or the Member s estate can receive a death benefit, but only as a lump sum Therefore insurance proceeds, if paid to an independent adult child, may be subject to lump sum tax Lump sum tax free if paid to a Tax Dependant.

8 Life insurance Special circumstances apply to minor children under the age of 18 if they receive the benefit in the form of a pension A child of the deceased will be required to commute the benefit to a lump sum once they reach age 25 The receiving lump sum will be tax free provided the pension is commuted before age 25 The requirement to cash the benefit as a lump sum by the time the child attains the age of 25 does not apply if the child is a dependant child with a permanent disability.

9 Case Study 1 Stuart, a member of an SMSF, has a balance of $350,000 The fund holds a life insurance policy of $650,000 on Stuart s life Stuart is widowed and has one child, Melanie, aged 14 Stuart dies in a car accident The fund receives the insurance proceeds of $650,000 Stuart s member balance in the fund is now $1,000,000.

10 Case Study 1 Melanie can receive the death benefit (including insurance proceeds) as a tax free lump sum or a death benefits pension Therefore $1,000,000 can be used to start a pension, pay a lump sum, or a combination of the two The pension can remain in place for Melanie, but must be commuted to a lump sum by the time she turns 25 At this age, the residual value of the pension is $1,200,000 This amount could then be paid to Melanie as a tax free lump sum at age 25.

11 Tax on life insurance proceeds Lump sum tax is payable as follows if benefit goes to SIS dependant : Tax Free Nil Taxable - taxed 15%* Taxable - untaxed 30%* *Plus Medicare Levy. The fund withholds the tax and pays the net benefit to the SIS dependant.

12 Case Study Keith s SMSF purchases a life insurance policy ($1m proceeds) and the fund has been claiming a deduction for the premium On 1 July 2015 Keith died Keith s DOB was 1 July 1960 Keith started work on 1 July 1980 His SMSF balance at date of death was $700,000, consisting of $300,000 tax-free and $400,000 taxable components Keith intended retiring on his 65 th birthday, which would have been 1 July 2025.

13 Case Study Keith is survived by his independent adult son Mick As Mick is a SIS dependant he can only receive the benefit as a lump sum Insurance proceeds are considered a untaxed taxable component Given $1,000,000 will be insurance proceeds, is the lump sum tax payable on this amount $1,000,000 x 32%* = $320,000? *Plus Medicare Levy. Plus $400,000 taxable component x 17% = $68,000? Therefore is total lump sum tax = $320,000 + $68,000 = $388,000?

14 Case Study Legislation prescribes how the tax components where a death benefit includes insurance proceeds The statutory formula to calculate the taxed element of the taxable component is: (Amount of super lump sum x Service days/service days + Days to retirement) Tax free component Service days are generally the number of days from the date the individual joined the super fund to the date of death Days to retirement are the number of days from the date of death to the 65 th birthday.

15 Case Study 1. Calculate the Taxed element Death benefit lump sum $1,700,000 Multiplied by service days/total period 12,784/16,437 Sub-total $1,322,188 Less tax free component $300,000 Taxed element $1,022,188

16 Case Study 2. Calculate the Untaxed element Death benefit lump sum $1,700,000 Less tax free component $300,000 Less taxed element $1,022,188 Untaxed element $377,812 Therefore lump sum benefit will consist of $300,000 tax free component, $1,022,188 taxable component and $377,812 taxable component (untaxed).

17 Case Study Tax free component (Nil tax) $300,000 Taxable component (Taxed element) $1,022,188 x 17% $173,772 Taxable component (Untaxed element) $377,812 x 32% $120,900 Total tax payable if benefit paid to Mick = $294,672.

18 Case Study Therefore the total lump sum tax paid by Mick on the payment of the death benefit including insurance proceeds is: $173,772 + $120,900 = $294,672 At first blush the lump sum tax on the $1,000,000 life insurance proceeds looks like it would be: $1,000,000 x 32% = $320,000 When we include the lump sum tax on the taxable component (taxed) of $400,000 it appeared the total tax would be: $68,000 + $320,000 = $388,000.

19 Case Study Thus the net benefit appeared to be: $1,700,000 - $388,000 = $1,312,000 However, due to the modification of the taxable (untaxed) element the net benefit is: $1,700,000 - $294,672 = $1,405,328 So Mick receives an extra $93,328.

20 Case Study What if the benefit is paid to a Tax Dependant? If Keith had directed the entire payment to his spouse (by way of say a BDBN) the benefit would have been received tax free The spouse could receive the benefit as a pension, tax free lump sum, or a combination of the two Such a strategy would have saved almost $300,000 in lump sum tax when compared with the benefit being paid to a SIS Dependant.

21 Life insurance proceeds taken as a pension If life insurance proceeds are used to commence a pension the components are based on the superannuation interest to which the proceeds are added If the superannuation interest is in accumulation mode, the proceeds are all a taxable component If the superannuation interest is in pension mode (and reversionary) the proceeds take the components of the pension If the superannuation interest is in pension mode (and non-reversionary) the proceeds are all a taxable component.

22 Case Study Richard was in receipt of a non-reversionary pension at the time of his death on 1 July The pension benefit in the fund was $600,000 and consisted entirely of a tax free component. Richard was covered by a life insurance policy held by the fund. The fund was paid $500,000 in respect of Richard s death. The amount was added to the superannuation interest that had supported Richard s income stream. But only if pension non-reversionary.

23 Case Study The Trustee of the fund decides to pay Richard s spouse Emma an income stream from 1 November 2013, which was as soon as practicable. The income stream consists of Richard s superannuation interest and the insurance proceeds. The benefit started as a pension on 1 November by Emma would be as follows: Tax Free $600,000 (54.55%) Taxable $500,000 (45.45%) Any earnings on the $600,000 from 1 July to 1 November 2013 will be exempt from tax.

24 Case Study If Richard s pension had been reversionary to Emma, the insurance proceeds would be the same component as the superannuation interest. As the pension was 100% tax free, the insurance proceeds received by the fund would also be tax free. So the benefit started as a pension on 1 November by Emma would be as follows: Tax Free $1,100,000 (100%) Any earnings on the $1,100,000 from 1 July to 1 November 2013 will be exempt from tax.

25 Life insurance proceeds taken as a pension If the Tax Dependant takes the insurance proceeds as an income stream, the tax position depends on their age If 60 or over the income stream is tax free If under 60 the taxable component is taxed at their marginal tax rate, less a 15% tax offset The income stream is considered an Account Based Pension, as a condition of release has been met (death).

26 Permanent incapacity Often called Total and Permanent Disability (TPD) insurance TPD insurance protects the member against the risk they will not be able to work again due to illness or injury Tax implications similar to life insurance going to a SIS Dependant In the case of a TPD benefit, the issue is determining how much of that benefit will form part of the tax-free component An untaxed element of the taxable component is not created when a TPD benefit is paid.

27 Satisfying the definition of TPD The member must first satisfy the insurer s definition of TPD TPD policies are either own or any occupation definitions Own occupation the member is unable to work again in their own occupation With this type of policy the member may satisfy the insurer s definition of TPD, but not the SIS definition The SMSF may receive the insurance proceeds, but the fund may not be able to release the benefit to the member.

28 Satisfying the definition of TPD Permanent incapacity is defined in the SIS Regulations (6.01(2)): Ill health (whether physical or mental), where the Trustee is reasonably satisfied that the Member is unlikely, because of ill health, to engage in gainful employment for which the member is reasonably qualified by education, training or experience. If the member is able to satisfy this definition, the Trustee is able to pay a lump sum to the member being the insurance proceeds and the member s account balance regardless of their age The member can also commence an income stream from the SMSF.

29 Income stream If the benefit is taken as an income stream the following rules apply: Tax free component - no tax is payable regardless of age Taxable component - under 60 tax is payable at the member s MTR less a 15% tax rebate Taxable component 60 or over no tax is payable. The pension will be subject to the payment standards that apply to an ordinary Account Based Pension No maximum withdrawal limit applies.

30 Example - Income stream Rachel, 36, has been diagnosed with MS and is unable to ever work again She has $100,000 in superannuation all a taxable component She has a TPD policy through superannuation with a value of $500,000 She satisfies both the Underwriter s and superannuation definition of TPD She decides to take an income stream from superannuation She will draw $40,000 per annum from the fund The income stream will be subject to a MTR of 37% (plus Medicare Levy).

31 Example - Income stream The tax payable will be at the rate of 39% (including Medicare Levy) The $600,000 will consist of a taxable component The $40,000 income stream will be subject to 39% tax (including Medicare Levy) A 15% tax rebate will apply to the $40,000 income stream The fund will withhold the tax (taking into account the 15% rebate) The net amount ($40,000 - $9,600) = $30,400 will be paid to Rachel.

32 Lump Sum The taxation treatment of the lump sum would be: Age at date of payment Tax Free component Taxable component Taxed element Tax Rate Under Preservation Age Tax Free Total Amount 20%* Preservation age to age 59 Tax Free First $195,000 Excess above $195,000 0% 15%* 60 + Tax Free Tax Free 0% * Plus Medicare Levy. The tax components of the insurance proceeds are determined by the superannuation interest into which they are paid.

33 How are the tax components determined? If the superannuation interest is in accumulation mode, the insurance components are all taxable If the superannuation interest is a non-reversionary pension, the insurance components are all taxable If the superannuation interest is a reversionary pension, the insurance components take the components of that pension For example, if the member has a reversionary pension that is 100% tax free component and has TPD insurance, then the TPD proceeds paid into that superannuation interest will be 100% tax free.

34 Example TPD Lump Sum Richard, 46, is permanently disabled after a driving accident He satisfies the insurer s definition as well as the SIS definition He has $120,000 in super, plus TPD insurance proceeds of $500,000 All his super is a taxable component Richard takes his benefit as a lump sum to pay off his mortgage The lump sum tax is $620,000 x 22% = $136,400 The net amount received is $620,000 - $136,400 = $483,600.

35 Disability Superannuation Benefit If the member can further satisfy the definition of Disability Superannuation Benefit then the benefit may include a tax free component Disability Superannuation Benefit is defined in s995-1(1) ITAA 1997 as: A Superannuation Benefit if: a) The benefit is paid to a person because he or she suffers from ill-health (whether physical or mental), and b) 2 legally qualified medical practitioners have certified that, because of the illhealth, it is unlikely that the person can ever be gainfully employed in a capacity for which he or she is reasonably qualified because of education, experience or training.

36 Disability Superannuation Benefit The calculation of the increased tax free component is as follows: Amount of benefit x days to retirement service days + days to retirement Where: Days to Retirement is the number of days in the service period for the lump sum Service Days is the number of days from the day on which the person stopped being capable of being gainfully employed to his or her last retirement day (usually when the Member turns 65 years old).

37 Case Study - Disability Superannuation Benefit Angela is 46 years old (DOB 30 May 1969) She stopped work due to her illness on 30 June 2015 Her balance in her SMSF is $325,000 - $125,000 tax free component and $200,000 taxable component In addition Angela held a TPD insurance policy in her SMSF of $500,000.

38 Case Study - Disability Superannuation Benefit The insurer paid out the proceeds of her TPD insurance policy to her SMSF As a result, Angela's balance in the fund is now $825,000 - $125,000 tax free and $700,000 taxable component If taken as a lump sum Angela receives the $125,000 tax free component lump sum tax free Angela will be required to pay tax on the taxable component at 22%, being $154,000 The net benefit to be paid to Angela as a TPD lump sum would be $671,000.

39 Case Study - Disability Superannuation Benefit Angela s tax free component of the lump sum can be increased by the following calculation: Amount of benefit x days to retirement service days + days to retirement $825,000 x 6,910 days 16,190 days =$352,115 additional tax free component Total tax free component is $352,115 + $125,000 = $477,115.

40 Case Study - Disability Superannuation Benefit Taxable component $347,885 Therefore tax payable by Angela on the $825,000 lump sum benefit will be: Tax Free Component of $477,115 Nil Taxable Component of $347,885 *22% = $76,535 By being able to satisfy the definition of a disability superannuation benefit Angela has increased her tax free component of the lump sum payout by $352,115 and reducing tax payable in the fund by $77,465.

41 Disability Superannuation Benefit The tax implications are only applied if the benefit is taken as a lump sum If there is a Tax Dependant as a recipient with life cover, the benefit can remain in the super system, or be taken as a tax free lump sum But can only be taken as a tax free lump sum whilst it is a superannuation death benefit If it remains in the super system beyond the death benefits period, any future lump sum will be taxed as an ordinary benefit payment lump sum.

42 Temporary incapacity A member of an SMSF may be eligible to receive a benefit if they have become temporarily incapacitated The SIS Act advises temporary incapacity exists where: the person has temporarily ceased work as a result of physical or mental ill-health which does not constitute permanent incapacity The decision to pay a member benefits under temporary incapacity condition of release is purely a trustee decision.

43 Temporary incapacity However, documentation is still required to demonstrate how the trustee arrived at the conclusion the member was temporarily incapacitated In addition, the SMSF s governing rules should also be consulted for any further requirements Upon satisfying the temporary incapacity condition of release, the member may only receive benefits in the form of a non-commutable income stream The benefit received is only proceeds from the insurance policy - not the member s accumulated benefit.

44 Temporary incapacity The following income stream rules apply: Tax free component - no tax is payable regardless of age Taxable component - tax is payable at the member s MTR. The pension will be subject to the minimum payment standards that apply to an Account Based Pension The maximum pension amount is the income the member was receiving prior to disablement No 15% rebate applies to the taxable component.

45 Conclusion Consider all the issues Type of Insurance Inside Super Outside Super Income Protection Premiums tax deductible? Yes Yes Are benefits taxed? Yes Yes Term Life Premiums tax deductible? Yes No Are benefits taxed? Tax free to dependants Tax free Taxable to Nondependants Tax free TPD Premiums tax deductible? Yes No Are benefits taxed? Yes Tax free

46 AIA Master Plan AIA Master Plan Designed specifically for SMSFs Wholesale premium rates Unlimited Life Insurance cover $3 million Permanent Incapacity cover $30,000 per month Temporary Incapacity cover Takeover terms to make it easier to move existing cover from Industry and Retail funds to your SMSF 46

47 Call to action Seek advice! There are a number of issues that need to be considered Whilst there are advantages of holding insurance through an SMSF, life insurance depends largely on who the end recipient is going to be TPD and temporary incapacity policies may be of benefit, given premiums can be funded through the SMSF This is especially true for clients and members on the top marginal tax rate were salary sacrifice arrangements can provide tax savings.

48 Disclaimer This presentation was prepared by SuperIQ Pty Ltd (ABN ) ( SIQ ). Material contained in this presentation is a summary only and is based on information believed to be reliable and received from sources within the market. The information is believed to be accurate at the time of compilation and is provided by SIQ in good faith. However, the statements including assumptions and conclusions are not intended to be a comprehensive statement of relevant practice or law that isoften complex and can change. It is not the intention of SIQ that this presentation be used as the primary source of readers information but as an adjunct to their own resources and training. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. SuperIQ does not guarantee the performance of any fund or the return of an investor's capital. No representation is given, warranty made or responsibility taken as to the accuracy, timeliness or completeness of any information or recommendation contained in this publication and SIQ will not be liable to the reader in contract or tort (including for negligence) or otherwise for any loss or damage arising as a result of the reader relying on any such information or recommendation (except in so far as any statutory liability cannot be excluded). Individual circumstances, in particular relating to self managed superannuation funds, may vary greatly. This presentation has been prepared for general information purposes only and not having regard to any particular person s investment objectives, financial situation or needs. Accordingly, no recommendation (express or implied) or other information should be acted upon without obtaining specific advice from an authorised representative.

49 See your future clearly superiq.com.au superconcepts.com.au

Insurance through super strategies

Insurance through super strategies Insurance through super strategies For advisers Inside super or outside super? Insurance is quite often held within super because the premiums can be paid from accumulated super balances or employer contributions.

More information

Taxation of insurance payments through super Fact Sheet - October 2014

Taxation of insurance payments through super Fact Sheet - October 2014 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

More information

Tech Update September 2005

Tech Update September 2005 A Tech Update September 2005 Understanding insurance and Including insurance within can be of benefit to many clients, however there are also complex issues which need to be considered. This Tech Update,

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

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

Funding income protection and trauma insurance via superannuation

Funding income protection and trauma insurance via superannuation 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

More information

Holding insurance inside or outside super taxation issues

Holding insurance inside or outside super taxation issues Holding insurance inside or outside super taxation issues In this article, Midwinter s General Manager of Strategy and Technical Services, Matthew Esler, explores the tax opportunities that exist around

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

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

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

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

Tax on contributions. Non-concessional (after tax) contribution caps. Age at 1 July 2015 Annual cap Tax rate Under 65 $180,000* Nil 65-74 $180,000 Nil

Tax on contributions. Non-concessional (after tax) contribution caps. Age at 1 July 2015 Annual cap Tax rate Under 65 $180,000* Nil 65-74 $180,000 Nil 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

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

CLIENT FACT SHEET. If you are under age 65 you may make personal contributions to superannuation on your own behalf.

CLIENT FACT SHEET. If you are under age 65 you may make personal contributions to superannuation on your own behalf. 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

More information

Superannuation. A Financial Planning Technical Guide

Superannuation. A Financial Planning Technical Guide Superannuation A Financial Planning Technical Guide 2 Superannuation Contents Superannuation overview 4 Superannuation contributions 4 Superannuation taxation 7 Preservation 9 Beneficiary nomination 9

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

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

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

Contributions are taxed differently depending on whether you are making contributions to a taxed or untaxed fund.

Contributions are taxed differently depending on whether you are making contributions to a taxed or untaxed fund. Tax and super Issue Date: 1 July 2015 SUP E R ANNUATION The information in this document forms part of the Product Information Booklets for GESB Super and West State Super, each dated 1 July 2015. You

More information

Fact Sheet Tax on Super 2009/10

Fact Sheet Tax on Super 2009/10 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

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

Understanding insurance Version 5.0

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

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

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

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

Comparison of insurance - inside and outside super Fact Sheet - October 2014

Comparison of insurance - inside and outside super Fact Sheet - October 2014 Comparison of insurance - inside and outside super Fact Sheet - October 2014 Insurance is quite often held within super because the premiums can be paid from accumulated super balances or employer contributions.

More information

Important information:

Important information: SMSF insurance Important information: This document has been prepared by CommInsure, a registered business name of The Colonial Mutual Life Assurance Society Limited ABN 12 004 021 809 AFSL 235035 (CMLA).

More information

Adviser Tax Guide ONECARE 1 JULY 2014 ANZ WEALTH

Adviser Tax Guide ONECARE 1 JULY 2014 ANZ WEALTH Adviser Tax Guide ONECARE 1 JULY 2014 ANZ WEALTH This guide is current at 1 July 2014 and is subject to change. Updated information will be available free of charge from onepath.com.au or by calling 1800

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

Key Superannuation Rates and Thresholds

Key Superannuation Rates and Thresholds Key Superannuation Rates and Thresholds Concessional contributions cap Concessional contributions consist of: 1. Employer contributions including salary sacrifice contributions 2. Personal contributions

More information

Understanding Insurance

Understanding Insurance 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 insurance. Important

More information

In this time of fiscal responsibility, businesses need to. Employee benefits better in super

In this time of fiscal responsibility, businesses need to. Employee benefits better in super 46 Insurance Jeffrey Scott, executive manager, InsuranceTech, CommInsure Jeffrey Scott joined CommInsure in June 2002, and was promoted to his present role of executive manager InsuranceTech, in January

More information

Super income stream strategies webinar

Super income stream strategies webinar Super income stream strategies webinar Presented by: Brett Ricchini, Financial Advisor, 2 December 2014 Create your retirement plan Maximise your Super Income Stream to fund your future lifestyle aspirations

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

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

Understanding insurance

Understanding insurance Version 4.2 This document provides some additional information to help you understand the financial planning concepts discussed in the SOA in relation to. Important information This document has been published

More information

Member guide. Superannuation and Personal Super Plan. The information in this document forms part of the Hostplus Product Disclosure Statement issued

Member guide. Superannuation and Personal Super Plan. The information in this document forms part of the Hostplus Product Disclosure Statement issued Member guide. Superannuation and Personal Super Plan Product Disclosure Statement The information in this document forms part of the Hostplus Product Disclosure Statement issued Section 7. How super is

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

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

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

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

Priority Protection for Platform Investors Supplementary Product Disclosure Statement

Priority Protection for Platform Investors Supplementary Product Disclosure Statement Priority for Platform Investors Supplementary Product Disclosure Statement 1 July 2014 Life s better with the right partner This Priority for Platform Investors Supplementary Product Disclosure Statement

More information

2014/15 Key Superannuation Rates and Thresholds

2014/15 Key Superannuation Rates and Thresholds 2014/15 Key Superannuation Rates and Thresholds These are the key rates and thresholds that apply in relation to superannuation contributions and benefits, superannuation guarantee and co-contributions.

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

WA Super Insurance Guide

WA Super Insurance Guide MY SUPER APPROVED WA Super Insurance Guide The information in this document forms part of the WA Super Product Disclosure Statement, November 2013 You should read the PDS in conjunction with this Member

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

How super is taxed. VicSuper FutureSaver Member Guide

How super is taxed. VicSuper FutureSaver Member Guide How super is taxed VicSuper FutureSaver Member Guide Date prepared 1 July 2015 The information in this document forms part of the VicSuper FutureSaver Product Disclosure Statement (PDS) dated 1 July 2015.

More information

Superannuation and cancer

Superannuation and cancer Many people with cancer have concerns about superannuation. This fact sheet explains how to access your superannuation and insurance benefits from your fund. Finding all of your superannuation It s common

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

Additional Information Booklet

Additional Information Booklet SuperWrap Additional Information Booklet Dated 1 July 2014 This Additional Information Booklet ( Booklet ) has been prepared by the issuer of SuperWrap: BT Funds Management Limited ABN 63 002 916 458 AFSL

More information

Superannuation and cancer

Superannuation and cancer Many people with cancer have concerns about superannuation. This fact sheet explains how you may be able to access your superannuation and the insurance benefits attached to your fund. Finding all of your

More information

Structuring & Tax. Ensuring your plans for your super become a reality. By Ben Andreou Partner Head of Structuring & Tax

Structuring & Tax. Ensuring your plans for your super become a reality. By Ben Andreou Partner Head of Structuring & Tax 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...

More information

Your death and disability benefits (Rio Tinto)

Your death and disability benefits (Rio Tinto) 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

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

Tasmanian Accumulation Scheme Death and Incapacity Cover

Tasmanian Accumulation Scheme Death and Incapacity Cover Death and Incapacity Cover Retirement Benefits Fund Tasmanian Accumulation Scheme Death and Incapacity Cover Information in this brochure is current as at 18 January 2012 Retirement Benefits Fund Tasmanian

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

Superannuation and Residency Fact Sheet - October 2014

Superannuation and Residency Fact Sheet - October 2014 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

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

Insurance and estate planning. A Financial Planning Technical Guide

Insurance and estate planning. A Financial Planning Technical Guide Insurance and estate planning A Financial Planning Technical Guide 2 Insurance and estate planning Introduction 4 General insurance 4 Private health insurance 4 Personal insurance 5 Business insurance

More information

Death of a Member in an SMSF. Peter Johnson The SMSF Expert TM CST Corporate Solutions Pty Ltd

Death of a Member in an SMSF. Peter Johnson The SMSF Expert TM CST Corporate Solutions Pty Ltd Death of a Member in an SMSF Peter Johnson The SMSF Expert TM CST Corporate Solutions Pty Ltd Outcomes? Death Benefit Nominations Insurance Inside of Super Changing Trustee s etc after death Definition

More information

INSURANCE GUIDE INSIDE. Rebecca Farrell QIEC Super member

INSURANCE GUIDE INSIDE. Rebecca Farrell QIEC Super member INSURANCE GUIDE INSIDE Cover your family How much insurance do you need? Discount insurance products Insurance basics Rebecca Farrell QIEC Super member Prepared 1 June 2012 by the Trustee QIEC Super Pty

More information

Product Disclosure Statement

Product Disclosure Statement Product Disclosure Statement MYSUPER AUTHORISATION NUMBER 72229227691044 1 July 2014 NESS Super, the industry fund to power your financial future inside 1 About NESS Super 2 2 How super works 2 3 Benefits

More information

uperannuation rates and thresholds as at 1 July 2016

uperannuation rates and thresholds as at 1 July 2016 TECHNICAL FACT SHEET uperannuation rates and thresholds as at 1 July 2016 Contributions to Super Low income superannuation contribution The Government has abolished Low Income Superannuation Contribution

More information

Rates of Tax 2013/14 Resident Individuals

Rates of Tax 2013/14 Resident Individuals 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

More information

Superannuation Technical Information Booklet

Superannuation Technical Information Booklet Superannuation Technical Information Booklet Macquarie Wrap Document number MAQST02 The information contained in this Technical Information Booklet should be read in conjunction with the relevant Product

More information

Personal Choice Private ewrap Super/Pension

Personal Choice Private ewrap Super/Pension Personal Choice Private ewrap Super/Pension Product Disclosure Statement (PDS) Part 2 Additional Information I 1 July 2014 PERSONAL CHOICE PRIVATE This Personal Choice Private ewrap Super/Pension PDS Part

More information

How super is taxed guide (AP.4)

How super is taxed guide (AP.4) How super is taxed guide (AP.4) Issued 1 January 2016 The information in this document forms part of the ESSSuper Accumulation Plan Product Disclosure Statement dated 1 January 2016. Contents Providing

More information

A Financial Planning Technical Guide

A Financial Planning Technical Guide Insurance and Estate Planning A Financial Planning Technical Guide Securitor Financial Group Limited ABN 48 009 189 495 AFSL 240687 Contents Introduction 1 General insurance 1 Private health insurance

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

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

Superannuation Tips and Traps. Kim Guest / Tim Sanderson March 2014

Superannuation Tips and Traps. Kim Guest / Tim Sanderson March 2014 Superannuation Tips and Traps Kim Guest / Tim Sanderson March 2014 Disclaimer This presentation is given by a representative of Colonial First State Investments Limited AFS Licence 232468, ABN 98 002 348

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

Insurance in your super

Insurance in your super Insurance in your super Fact sheet Information in this fact sheet is current as at 1 July 2015 Contents Overview 1 What is Life cover? 5 How your Life cover works 6 When is your insured benefit payable?

More information

SUMMARY OF RATES AND THRESHOLDS 2015/16

SUMMARY OF RATES AND THRESHOLDS 2015/16 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

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

SSS factsheet 14. exchanging your pension for a lump sum

SSS factsheet 14. exchanging your pension for a lump sum 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

More information

- on termination due to redundancy

- on termination due to redundancy 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

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

Nestlé Australia Group Superannuation Fund

Nestlé Australia Group Superannuation Fund Nestlé Australia Group Superannuation Fund Information about your super Greg Hughes - Russell Investments What we are going to talk about today.. How to find out more about your super In particular: Your

More information

Why would you want to consider insurance? We pay claims

Why would you want to consider insurance? We pay claims SMSF Plan CommInsure s SMSF Plan is a customised, easy to use product designed to offer SIS-aligned cover to SMSF trustees. This has the potential to reduce the compliance burden on trustees when selecting

More information

RBF Tasmanian Accumulation Scheme Redundancy

RBF Tasmanian Accumulation Scheme Redundancy 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

More information

The sole purpose test

The sole purpose test In this issue: SMSFs and insurance : the new landscape where property and borrowing are involved In recent years 1, we have seen substantial growth in the number of SMSF trustees entering into limited

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

SuperFuture Retirement Savings Account

SuperFuture Retirement Savings Account SuperFuture Retirement Savings Account Part 1 - SuperFuture Retirement Savings Account Product Disclosure Statement (Corporations Act (Cth) 2001) This Product Disclosure Statement document for the SuperFuture

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

Tax Rates & Thresholds Handy Guide

Tax Rates & Thresholds Handy Guide Tax Rates & Thresholds Handy Guide 2014/15 Income Year Issued August 2014 Taxation of Superannuation Benefits Superannuation benefits from a taxed source Age of recipient Lump Sum Income stream 60 and

More information

Wilson HTM Investment Group

Wilson HTM Investment Group Wilson HTM Investment Group Transition to Retirement Income Streams (February 2012) Introduction Overview of Wilson HTM Investment Group Our Values Our History Whole of Firm Approach Michael Börjesson

More information

Understanding Insurance

Understanding Insurance Understanding Insurance Preparation Date: 26 November 2007 How to read this document Managing your finances to meet your day to day requirements as well as your long-term goals can be a complex task. There

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

The Insurer s definitions 12. Nominating your beneficiary 16

The Insurer s definitions 12. Nominating your beneficiary 16 Russell iq Super 1 July 2014 JUMP TO Insurance in your superannuation 3 The Insurer s definitions 12 Nominating your beneficiary 16 The information in this document provides additional information to the

More information

Redundancy A guide to the right choices

Redundancy A guide to the right choices 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

More information

Tax and your CSS benefit

Tax and your CSS benefit 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

More information

TOTAL AND PERMANENT DISABILITY INSURANCE AS A SUPERANNUATION BENEFIT

TOTAL AND PERMANENT DISABILITY INSURANCE AS A SUPERANNUATION BENEFIT TOTAL AND PERMANENT DISABILITY INSURANCE AS A SUPERANNUATION BENEFIT ABOUT IUS (INTERNATIONAL UNDERWRITING SERVICES PTY LTD) IUS is a major provider of income replacement insurance to the Australian market.

More information

What is insurance?... 3. What types of insurance are there?... 4. Life insurance... 5. Total and Permanent Disability insurance...

What is insurance?... 3. What types of insurance are there?... 4. Life insurance... 5. Total and Permanent Disability insurance... Contents What is insurance?... 3 What types of insurance are there?... 4 Life insurance... 5 Total and Permanent Disability insurance... 6 Trauma insurance... 7 Income Protection insurance... 8 Insurance

More information

A Guide to Managing Personal Risk

A Guide to Managing Personal Risk A Guide to Managing Personal Risk 1 A Guide to Managing Personal Risk Personal Risk is about more than just the Life Cover/ TPD attached to your super policy which is paid out on the event of your death.

More information

Zurich Super Estate Management

Zurich Super Estate Management Zurich Super Estate Management Binding Nominations The Trustee of the Zurich Master Superannuation Fund is Zurich Australian Superannuation Pty Limited ABN 78 000 880 553, AFSL 253 500, RSE Licence No.

More information

The Executive Superannuation Fund

The Executive Superannuation Fund The Executive Superannuation Fund Agenda Overview of The Executive Superannuation Fund ( the Fund ) Contributions ti and insurance benefits available to KPMG staff Investment option asset allocation Investment

More information

Super for creative people. INSURANCE GUIDE. Issued 1 July 2014 MY SUPER AUTHORISED PRINT. MEDIA. ENTERTAINMENT. ARTS.

Super for creative people. INSURANCE GUIDE. Issued 1 July 2014 MY SUPER AUTHORISED PRINT. MEDIA. ENTERTAINMENT. ARTS. Super for creative people. INSURANCE GUIDE Issued 1 July 2014 PRINT. MEDIA. ENTERTAINMENT. ARTS. MY SUPER AUTHORISED CONTENTS 1. Protection when you need it most 3 Three types of cover available 3 Which

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 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