Adam, aged 53, is an electrician, has been your client for many years. This year Adamâ€™s father passed away leaving him an inheritance of $450,000.Â Adam realising the importance of having sufficient funds in retirement decided to contribute the inherited funds into her superannuation account as a non-concessional contribution.
1.Â Â Â If Adam contributes the $450,000 inheritance money as a non-concessional contribution, by how much will he be breaching the non-concessional contributions cap?
2.Â Â Â Provide Adam with advice on how he could increase his superannuation?
3.Â Â Â Adamâ€™s electrical business has not been doing well and Adam has worked this year for a large engineering firm.Â Adamâ€™s assessable income is $35,000.Â How much is Adamâ€™s employer required to contribute to his super fund as part of the Superannuation Guarantee? Provide your answer in Dollars not a percentage
4.Â Â Â After considering the contributions tax, how many dollars will actually be invested from the employerâ€™s contribution?
5.Â Â Â Is the Low Income Superannuation Contribution refund applicable to Adam?Â Explain.
6.Â Â Â After considering the contributions tax on the employer contribution and the Low Income Superannuation Contribution refund, how many dollars of the employerâ€™s Superannuation Guarantee contribution will actually be invested in Adamâ€™s super fund?
Adamâ€™s brother, Benjamin, is currently age 63. He plans to retire on 30 June 2014 and will turn 65 on 15 August 2013. He wants to contribute the maximum possible into super so he can enjoy the benefits of a tax-free pension. Devise a strategy that is most likely to meet his objective of maximising concessional and non-concessional contributions for 2012/13 and 2013/14 financial years without creating an excess concessional or non-concessional contribution.
It is important to understand the workings of a financial planning office. It is likely that you will be looking after clients that have investments in superannuation across industry funds, retail funds, wholesale funds, corporate super funds and SMSFâ€™s. For clients that are in receipt of pension income, it is a requirement that all funds (except for SMSFâ€™s) provide a bank account into which pension income can be paid (at least annually). If the minimum pension at the end of the financial year has not been paid out (for whatever reason) from the super fund, all funds (except for SMSFâ€™s) will automatically pay the minimum out, whether the member likes it or not, in order to comply with the prevailing legislation. The complexity exists when SMSF members are also the trustees. Sometimes SMSF members donâ€™t remember to pay out the minimum pension income. Such clients often rely on you as the adviser to remind them of their obligations. The penalty for breaching the rules is harsh so it is important you ensure you have strict procedures in place to ensure none of your clients breach the law in regard to their superannuation obligations.
Lachlan and Jack are members of the JL Superannuation Fund which is a self-managed superannuation fund.Â They are considering the purchase of a factory from Jackâ€™s father in which they will be able to run their business of panel beating cars.Â The fund has assets of $400,000, which consist of shares ($200,000), fixed interest securities ($100,000) and cash ($100,000).Â The price of the factory is $300,000.
What is required to be considered in relation to the self-managed superannuation fund making the investment in the factory?
In your answer, provide comments on the following issues:
1.Â Â Â the requirements in the superannuation fundâ€™s investment strategy;
2.Â Â Â Considerations in relation to the superannuation fundâ€™s asset allocation
3.Â Â Â whether it is possible for the superannuation fund to acquire the factory;
4.Â Â Â alternative strategies on how the factory could be acquired by the superannuation fund;
5.Â Â Â the advantages of having the factory as an investment of the superannuation fund
Structuring of Superannuation Benefits
During June 2011, you provided advice to your client, Gordon, concerning his financial planning needs.Â It was estimated that, if Gordon had died at the time you gave your advice, his superannuation death benefit would be about $1.9 million.Â This would have consisted of a tax-free component of $300,000 and a taxable component of $1.6 million.Â You recommended in the original Statement of Advice that Gordonâ€™s superannuation be paid to his spouse Michelle, partly as a lump sum and the remainder as a pension.Â Gordon and Michelle have two children (Skye, age 21, and Julian, age 26) who both live at home.Â Julian is unable to control his spending habits.
Assume Gordon is 62 years old and is withdrawing the minimum amount required (under law) from his account based pension. Is the pension income he withdraws taxable? Why or why not? If Gordon was 57, would the tax status on his pension income be different? Explain.
You have just been notified that Michelle has died and Gordon is seeking your advice about changing plans.Â Provide your recommendations on changes that you would make to Gordonâ€™s plan to ensure the children benefit equally from his superannuation.Â Donâ€™t forget to address the issues concerning Julianâ€™s reckless spending habits.
You are required to answer the following questions:
Why is social security an important pillar of Australia society?
Who is entitled to social security in Australia?
Nancy plans to retire next month when she is 65 years of age. She provides you with the following details
â€¢Â Â single
â€¢Â Â homeowner
â€¢Â Â motor vehicle, household contents and other lifestyle assets have a market value of $200,000
â€¢Â Â cash management trust $50,000
â€¢Â Â bank savings account $10,000
â€¢Â Â fixed deposits $100,000; and
â€¢Â Â Â Share portfolio $50,000.
a.Â Â Determine Nancyâ€™s Age Pension entitlement when she becomes eligible to receive it.
b.Â Â Â Is she assets tested or income tested?
Our Service Charter
Excellent Quality / 100% Plagiarism-FreeWe employ a number of measures to ensure top quality essays. The papers go through a system of quality control prior to delivery. We run plagiarism checks on each paper to ensure that they will be 100% plagiarism-free. So, only clean copies hit customers’ emails. We also never resell the papers completed by our writers. So, once it is checked using a plagiarism checker, the paper will be unique. Speaking of the academic writing standards, we will stick to the assignment brief given by the customer and assign the perfect writer. By saying “the perfect writer” we mean the one having an academic degree in the customer’s study field and positive feedback from other customers.
Free RevisionsWe keep the quality bar of all papers high. But in case you need some extra brilliance to the paper, here’s what to do. First of all, you can choose a top writer. It means that we will assign an expert with a degree in your subject. And secondly, you can rely on our editing services. Our editors will revise your papers, checking whether or not they comply with high standards of academic writing. In addition, editing entails adjusting content if it’s off the topic, adding more sources, refining the language style, and making sure the referencing style is followed.
Confidentiality / 100% No DisclosureWe make sure that clients’ personal data remains confidential and is not exploited for any purposes beyond those related to our services. We only ask you to provide us with the information that is required to produce the paper according to your writing needs. Please note that the payment info is protected as well. Feel free to refer to the support team for more information about our payment methods. The fact that you used our service is kept secret due to the advanced security standards. So, you can be sure that no one will find out that you got a paper from our writing service.
Money Back GuaranteeIf the writer doesn’t address all the questions on your assignment brief or the delivered paper appears to be off the topic, you can ask for a refund. Or, if it is applicable, you can opt in for free revision within 14-30 days, depending on your paper’s length. The revision or refund request should be sent within 14 days after delivery. The customer gets 100% money-back in case they haven't downloaded the paper. All approved refunds will be returned to the customer’s credit card or Bonus Balance in a form of store credit. Take a note that we will send an extra compensation if the customers goes with a store credit.
24/7 Customer SupportWe have a support team working 24/7 ready to give your issue concerning the order their immediate attention. If you have any questions about the ordering process, communication with the writer, payment options, feel free to join live chat. Be sure to get a fast response. They can also give you the exact price quote, taking into account the timing, desired academic level of the paper, and the number of pages.