Establish your Powers of Attorney...........................................................................................27

48. Apply for Accidental Life Insurance

We recommend that you apply for Accidental Life insurance as follows:  $XXX Accidental Life insurance on a stepped / level premium payable monthly / annually. The premiums for this risk protection insurance will be sourced from cash flow / from your XXX cash account / from your XXX Super Fund.

Benefits:

 Funds will be available in the event of accidental death to pay down your debts of $XX / provide ongoing income of $YY to ZZZZ / pay your children’s education fees / provide funds for your funeral costs / Other.  [Super] Structuring your insurance partly through superannuation will reduce the impact on your personal cash flow.  [Super] Paying your insurance via annual rollover will give you a 15% discount on your premiums.  [Monthly] Paying premiums monthly will help you to smooth the impact on your cash flow.  Your family will have financial support in place in the event of your accidental death.

Points to Consider:

 The accidental death policy will only pay at claim in the event of death caused by an accident not illness.  We have recommended new insurance that will be underwritten by the insurer to assess your application. They may offer revised terms including higher premiums or health exclusions, depending on the outcome of their assessment. Accidental death cover has a short underwriting process as they are not assessing you for illness related death.  Do not cancel any existing insurance cover prior to the recommended insurance being accepted and put into force.  [Specified levels of cover] You have specified the level of cover for your Life insurance and as such, we cannot confirm if this level of cover is appropriate for your needs. You may be underinsured as a result and not have adequate cover in place to meet your financial commitments in the event of a claim.  [Limited Information] You have not disclosed your full financial position for us to determine an appropriate level of cover. We have made some assumptions on what you need which may result in you being underinsured.  You need to complete your application for insurance honestly and with full disclosure. Failure to do so may give the insurer cause to void your policy and not pay claims in the future.  We have estimated the impact of certain health events on your financial position. The actual impact may be more than we have calculated and therefore you may be underinsured. Significant changes to your circumstances may also impact the appropriateness of the level of cover recommended. Please contact our office to arrange a review in the event of any significant changes to your lifestyle and/or needs.  [Level] Level premiums may increase over time; they are not fixed rates.  [Stepped] Stepped premiums will increase each year in line with your age.  [Cash flow] The recommended insurance premiums will reduce your personal cash flow available for other expenditure.  [Super] We have recommended you pay $XXX p.a. through your XXX Superannuation Fund. This will reduce your retirement savings. We estimate that your balance will be $XXX lower at age 65 than if you do not pay insurance via your super account. Please refer to our financial projections at the end of the SoA for further explanation.  [Super] Holding accidental life insurance within superannuation may result in tax being paid on benefits. This will result in the net amount being less than the calculated need. We recommend that you seek specialist tax advice to confirm the possible outcomes.

49. Apply for Business Expense Insurance

We recommend that you apply to protect your business expenses in the event you are unable to work due to illness or injury. We recommend cover to be provided as follows:  $XXX per month with a waiting period of 12 months.  Yourself / Your business as the owner of policy.  Premium on a stepped / level basis.  The policy will be an indemnity value contract.

Benefits:

 Business expense insurance will cover 100% of the fixed expenses as nominated by you. This is significantly more than a personal income protection policy.  This cover will help you continue your business in the event you are unable to work due to illness or injury. This will give you up to 12 months to recover or find an alternative solution for your business.  [Business owned policy] Holding your cover through your business will make insurance premiums tax deductible to the business.

Points to Consider:

 The benefit amount for this cover is based on your / our estimate of regular, fixed expenses. If this estimate is incorrect, you may be underinsured.  Payment at claim is normally limited for business expenses to 12 months, as opposed to an income protection policy where you can receive ongoing benefits up to age 70.  [Business owned policy] Benefits paid may be subject to tax and only the net amount will be available for paying your business expenses.  We have recommended new insurance that will be underwritten by the insurer to assess your application. They may offer revised terms including higher premiums or health exclusions, depending on the outcome of their assessment.  Do not cancel any existing insurance cover prior to the recommended insurance being accepted and put into force.  [Specified levels of cover] You have specified the level of cover for your business expense insurance and as such, we cannot confirm if this level of cover is appropriate for your needs. You may be underinsured as a result, and not have adequate cover in place to meet your financial commitments in the event of a claim.  [Limited Information] You have not disclosed the full financial position of the business for us to determine an appropriate level of cover. We have made some assumptions on what you need which may result in you being underinsured.  You need to complete your application for insurance honestly and with full disclosure. Failure to do so may give the insurer cause to void your policy and not pay claims in the future.  Significant changes to your circumstances may impact the appropriateness of the level of cover recommended. Please contact our office to arrange a review in the event of any significant changes to your lifestyle and/or needs.  [Level] Level premiums may increase over time; they are not fixed rates.  [Stepped] Stepped premiums will increase each year in line with your age.  [Personal Cash flow] The recommended insurance premiums will reduce your personal cash flow available for other expenditure.

50. Apply for Business Protection Insurance (Key Person) - Debt

We recommend that you apply for Key Person Business Protection insurance. This will provide cover to pay out business debt in the event of death / disablement / serious medical illness as follows:  $XXX Key Person Life insurance on a stepped / level premium payable monthly / annually.  $XXX Key Person Total and Permanent Disablement (TPD) ‘any’ / ’own’ occupation insurance on a stepped / level premium payable monthly / annually.  $XXX Key Person Trauma insurance on a stepped / level premium payable monthly / annually. The premiums for this business protection insurance will be sourced from cash flow / from your XXX cash account / from your XXX Super Fund [via annual rollover] / from your business.

Benefits:

 As you / <Key person> are / is a key contributor to the generation of business income, this cover will help to reduce financial stress on your business partner / associates by paying down your current debt of $XXX.  Paying down debt in the event of death / disablement / serious medical illness of <Key Person> / you as a key person, may allow the business to continue until an appropriate replacement can be found.  [Business Ownership] Holding the insurance via your business will ensure funds pass directly to the business for repayment of debt.  [Business Ownership] Holding the insurance via your business allows premiums to be paid from business cash flow.  [Super Ownership] Holding cover via super will reduce the impact on your business cash flow.

Points to Consider:

 The level of cover has been determined based on the current debts of the business. Should these change, your level of cover will need to be reviewed to avoid under or over-insurance.  As the cover is to pay down debt, which is considered capital in nature, your business will not be able to claim a tax deduction for premiums paid.  [Personal Ownership] Holding Key Person insurance personally means that benefits will be paid to the owner rather than the business. You will need to have a legal agreement in place to ensure that this benefit is transferred to the business to pay down debt.  [Super Ownership] Holding Key Person insurance via super means that benefits will be paid to the Fund member or beneficiaries rather than the business. You will need to have a legal agreement in place to ensure that this benefit is transferred to the business to pay down debt.  [Super Ownership] Holding key person cover via super may mean that benefits are subject to tax, dependent on the type of cover and beneficiaries. [Gross up] Sums insured have been grossed up to allow for this tax payment.  [Business Ownership] Trauma and TPD insurance may be subject to capital gains tax if owned by your business. This should be taken into consideration when determining the level of cover.  We have recommended new insurance that will be underwritten by the insurer to assess your application. They may offer revised terms including higher premiums or health exclusions, depending on the outcome of their assessment.  Do not cancel any existing insurance cover prior to the recommended insurance being accepted and put into force.  [Specified levels of cover] You have specified the level of cover for your Life / TPD / Trauma insurance and as such, we cannot confirm if this level of cover is appropriate for your business needs. It may be underinsured as a result and not have adequate cover in place to meet its debt commitments in the event of a claim.  [Limited Information] You have not disclosed the full business financial position for us to determine an appropriate level of cover. We have made some assumptions on what is needed which may result in you being underinsured.  You need to complete your application for insurance honestly and with full disclosure. Failure to do so may give the insurer cause to void your policy and not pay claims in the future.  [Level] Level premiums may increase over time; they are not fixed rates.  [Stepped] Stepped premiums will increase each year in line with your age.  [Life] New life insurance policies generally have a 13-month suicide exclusion.  [Trauma] New trauma insurance policies generally have a 90-day waiting period on major medical events.  [Cash flow] The recommended insurance premiums will reduce your cash flow available for other expenditure.  [Super] We have recommended you pay $XXX p.a. through your XXX Superannuation Fund. This will reduce your retirement savings. We estimate that your balance will be $XXX lower at age 65 than if you do not pay insurance via your super account. Please refer to our financial projections at the end of the SoA for further details.

51. Apply for Business Protection Insurance (Key Person) - Revenue

We recommend that you apply for Key Person Business Protection insurance. This will provide cover for lost business revenue in the event of death / disablement / serious medical illness as follows:  $XXX Key Person Life insurance on a stepped / level premium payable monthly / annually.  $XXX Key Person Total and Permanent Disablement (TPD) ‘any’/’own’ occupation insurance on a stepped / level premium payable monthly / annually.  $XXX Key Person Trauma insurance on a stepped / level premium payable monthly / annually. The premiums for this business protection insurance will be sourced from cash flow / from your XXX cash account / from your XXX Super Fund [via annual rollover] / from your business.

Benefits:

 As you / <Key person> are / is a key contributor to the generation of business income, this cover will help to cover the reduction in revenue until you / they return to work or an appropriate replacement is found.  Covering lost revenue in the event of death / disablement / serious medical illness of <Key person> / you as a key person, may allow the business to continue rather than being forced to liquidate.  [Business Ownership] Holding the insurance via your business will ensure funds pass directly to the business to cover revenue. Premiums will be tax deductible to the business.  [Business Ownership] Holding the insurance via your business allows premiums to be paid from business cash flow.  [Super Ownership] Holding cover via super will reduce the impact on your business cash flow.

Points to Consider:

 The level of cover has been determined based on the current revenue of the business. Should this change, your level of cover will need to be reviewed to avoid under or over-insurance.  As the cover is to replace revenue, premiums paid by the business are tax-deductible to the business and any benefit paid will also be taxable. The level of cover has been grossed up to allow for such tax payments at time of claim.  [Personal / Super Ownership] Holding Key Person insurance personally / via super means that benefits will be paid to the owner rather than the business. You will need to have a legal agreement in place to ensure that this benefit is transferred to the business for the intended purpose.  [Super Ownership] Holding key person cover via super may mean that benefits are subject to tax, dependent on the type of cover and beneficiaries. [Gross up] Sums insured have been grossed up to allow for this tax payment.  [Business Ownership] Trauma and TPD insurance may be subject to capital gains tax if owned by your business. This should be taken into consideration when determining the level of cover.  We have recommended new insurance that will be underwritten by the insurer to assess your application. They may offer revised terms including higher premiums or health exclusions, depending on the outcome of their assessment.  Do not cancel any existing insurance cover prior to the recommended insurance being accepted and put into force.  [Specified levels of cover] You have specified the level of cover for your Life / TPD / Trauma insurance and as such, we cannot confirm if this level of cover is appropriate for your business needs. It may be underinsured as a result and not have adequate cover in place to meet its financial commitments in the event of a claim.  [Limited Information] You have not disclosed the full business financial position for us to determine an appropriate level of cover. We have made some assumptions on what you need which may result in you being underinsured.  You need to complete your application for insurance honestly and with full disclosure. Failure to do so may give the insurer cause to void your policy and not pay claims in the future.  [Level] Level premiums may increase over time; they are not fixed rates.  [Stepped] Stepped premiums will increase each year in line with your age.  [Life] New life insurance policies generally have a 13-month suicide exclusion.  [Trauma] New trauma insurance policies generally have a 90-day waiting period on major medical events.  [Cash flow] The recommended insurance premiums will reduce your cash flow available for other expenditure.  [Super] We have recommended you pay $XXX p.a. through your XXX Superannuation Fund. This will reduce your retirement savings. We estimate that your balance will be $XXX lower at age 65 than if you do not pay insurance via your super account. Please refer to our financial projections at the end of the SoA for further details.

52. Apply for Child cover

We recommend that you apply for child cover as an optional extra to your Life / TPD / Trauma Policy. This will cover <Name of children> for $XXX each, in the event of a serious medical illness as outlined in the Product Disclosure Statement. This will be linked to your Life / TPD / Trauma Policy. We recommend that these premiums be paid monthly / bi-annually / annually from your personal cash flow. Premiums will be stepped and increase each year.

Benefits:

 You will receive a lump sum to assist in the payment of medical costs in the event of your child/ren suffering one of the pre-defined medical illnesses. As the cost of serious illness can be significant, this will help to reduce financial stress at a difficult time for your family.  [Life/Terminal illness cover] You will receive a payment to assist with final medical and other costs in the event of the death of one of your children.

Points to Consider:

 Most providers will only allow application for child cover between the ages of 2 and 18 years of age with cover continuing up to age 21.  Only those medical events defined by the insurer will be covered.  The level of cover is more restrictive than standard lump sum insurance. There may be a restriction on the number of children that can be covered.

53. Review your SMSF Insurance Strategy

We recommend that you review your SMSF Insurance strategy as outlined in your Trust Deed and accompanying notes. In the event that changes are required, we recommend you seek professional advice to have the amendments to the insurance strategy made.

Benefits:

 Your Fund members will have insurance in place to assist them and their beneficiaries in the event of death, illness or injury.  You will meet your responsibility as Trustee/s of your own Fund to ensure that each of the members of the Fund have insurance in place that is reviewed regularly.  Members insurance needs will be considered.  [Insurance recommendations] Recommendations for insurance made in this SoA are in line with the SMSF Insurance Strategy.

Points to Consider:

 Non-compliance with your Trustee duties may result in the loss of concessional tax status for the SMSF. Superannuation is concessionally taxed at 15% (10% for capital gains tax).  Any significant changes to member circumstances or changes to the SMSF Trust Deed may impact the appropriateness of insurance held. You will need to revisit the insurance policies and the insurance strategy of the Fund in these events to ensure continued compliance with your Trustee responsibilities.  Should you require amendments to the Insurance strategy / Trust Deed, there will be costs involved.  You are required to record this review and any insurance changes in your Trustee minutes for the Fund.

54. Invest in a Portfolio of Direct Shares

We recommend that you invest in a portfolio of direct shares as part of your wealth creation strategy. We recommend that you use funds from your cash / investment account to fund the purchase of this portfolio. Details of share purchases are provided in the next section of this SoA.

Benefits:

 Investing in direct shares will provide diversity to your overall investment portfolio.  Australian share dividend income is tax-effective where franking credits are provided.  You have the option to reinvest your dividend income back into your shares, reducing transactions costs as well as investing for further capital growth.  Holding shares directly provides flexibility as you can sell a selection of individual shares as needed. It also provides flexibility to manage capital gains tax when selling your portfolio.

Points to Consider:

 Investing directly into shares increases your exposure to market volatility.  Capital growth and dividend payments are not guaranteed.  Negative returns are likely where the value of your portfolio falls to less than what you start with.  It is best to have a long-term outlook for the ownership of direct shares; this may help to smooth out the impact of market volatility on your share portfolio performance.  Brokerage of $XX will be payable for the purchase of your share portfolio. Any further buys and sells within your portfolio will be subject to brokerage also at a rate of $XX / XX% per trade.  Diversification across companies and markets is harder to achieve when building a portfolio of direct shares. Managed funds provide more diversification at a lower level of investment.  Capital gains tax may be payable on the sale of shares. Please seek professional tax advice before selling any shares.

55. Commence a Regular Investment Plan

We recommend that you commence a regular savings plan of $XXX per month into your / the recommended XXX investment. We recommend that you make an initial investment of $2,000 to open the account. The money for this strategy will be sourced from your <Source of Funds>.

Benefits:

 Regular savings plans have the advantage of ‘dollar cost averaging’. This allows you to buy into an investment at the prevailing prices each month. When prices are low, you buy more units and when prices are high, you buy less. This is most effective in a volatile market and provides smoothing of the entry price into the investment.  We estimate that with earnings, you will have $XXX extra in your investment after 12 months of regular investing.  You only need an initial investment of $2,000 to commence this regular investment plan. This is much less than if you made a lump sum investment.  The risk of investing a lump sum at a high price is reduced by the averaging of entry prices from regular investment.

Points to Consider:

 [Source cash flow] Your cash flow will reduce by $XXX per week / month / annum.  You will have to report (in your tax return) any income that the investments generate.  If you decide to sell your investment portfolio, you may have to pay Capital Gains Tax (CGT).  Dollar cost averaging does not eliminate all market and investment risk. Your portfolio returns will still be subject to market volatility and investment performance.  Starting with a lower investment means that it will take longer to build an investment portfolio where further diversification can reduce some market / sector risk.  The recommended investment has a higher allocation to growth investments than your current cash / savings / investment account. This will increase the volatility of your investment.  You may miss opportunities to make a lump sum investment at a low price.  Regular review of this strategy will help you stay on track to achieve your goal of <goal>.

56. Invest in an Investment / Education Bond

We recommend that you invest $XXX from your <Source of Funds> into an Investment / Education Bond. We recommend that you make regular investments of $XXX per month for the term of the Bond (10 years). The underlying funds will be invested in line with your XXXX Risk Profile. Unlike traditional investment products, such as managed funds, bonds are a 'tax paid' investment. This means that tax on investment earnings is paid at the applicable company rate of 30 per cent by the bond issuer, not by the investor.

Benefits:

o Investors receive ‘tax paid’ returns provided they meet certain conditions: Hold the Bond for 10 years o Do not make withdrawals o Meet the 125% contribution rule.  Bonds paid to beneficiaries directly will be tax free.  Bonds are more tax effective when your marginal tax rate is above 30%.  [Education] You will have funds set aside for the purpose of paying your children’s education costs.  There are a wide range of investment options that will align with your Risk Profile.  Bonds are not normally subject to capital gains tax.  Bonds can be used to top up savings where super thresholds / caps have been reached.

Points to Consider:

 To receive the tax benefits, you need to hold the investment for 10 years, not make withdrawals and not contribute more than 125% of the previous year contributions in any one year.  There will be fees payable for the establishment and ongoing management of the Bond.  In the event that you have to redeem some or all of the Investment Bond prior to the completion of the ten-year period, the following tax will be payable: o Within 8 years: all earnings are taxed at your marginal tax rate less a 30% tax offset. o During the 9th year: 2/3rds of the earnings are taxed at your marginal tax rate less a 30% tax offset. o During the 10th year: 1/3rd of the earnings is taxed at your marginal tax rate less a 30% tax offset o Longer than 10 years: all withdrawals are tax free.

[Education] Education bonds have the added benefit of a tax refund paid to the education bond provider if the bond earnings are withdrawn and used for the bond holder’s education purposes. This refund is generally passed on to the bond holder and is broadly $30 for every $70 of bond earnings withdrawn for education expenses. Eligible education expenses are broad and may include: o Pre-school and primary school costs o Secondary and tertiary education costs, including HELP fees; and o Costs such as uniforms, private tuition, books, materials, student fees, residential boarding costs, rent and other accommodation expenses.

57. Commence an Investment Portfolio via a Platform / Wrap Account

We recommend that you invest into a diversified portfolio of investments via a platform / wrap account in line with your Investment Risk Profile. This investment of $XXX will be sourced from your <Source of Funds> and invested in XXX name / your name. Further details on the selection of underlying investments are provided later in this SoA. [Reinvest] We recommend that you reinvest income distributions and dividends back into the portfolio to maximise funds available for wealth creation. [Cash] We recommend that distributions and dividends be paid to your cash account within the platform / wrap, to make funds available for your cash flow needs.

Benefits:

 [Managed Funds] Professional Investment Fund Managers will assist in managing your investments.  Platform / Wrap accounts provide consolidated reporting and allow you to view and track your investments in one place.  The recommended investment portfolio will be diversified across asset classes and market sectors according to your risk profile.  A blend of income and growth investments has been selected for your Risk Profile.  You can sell down your portfolio at any time.  Nominating <Platform / Wrap Owner> as the owner of the investment portfolio will mean that income and capital gains are assessed at your / their marginal tax rate.  [Reinvest] Income can be reinvested in your investments to increase funds invested and grow your wealth.  [Cash distributions] Income from the investment portfolio can be paid to the platform / wrap cash account and accessed any time.  [Auto Rebalance] The recommended Platform / Wrap account allows for automatic allocation within your investment portfolio to keep it in line with your Investment Risk Profile. This reduces the time lag meaning you will be invested quicker in the right investments.  Platform / Wrap accounts give you access to lower wholesale investment fees not normally available to retail clients, reducing the ongoing management costs of your portfolio.

Points to Consider:

 Income on the investment portfolio will be assessable for tax purposes.  Capital gains on the investment portfolio will be subject to tax on the sale of the underlying investment. Please seek tax advice prior to selling any portion of your portfolio.  There will be administration costs to manage the account.  [Managed Funds] Professional Fund Managers charge investment fees to manage your investments.  [Transaction costs] You will incur an exit fee / brokerage costs / break fees of $X to transfer from your existing cash / bank / term deposit / investment account.  [Share portfolio] Brokerage of $XX will be payable for the purchase of your share portfolio. Any further buys and sells within your portfolio will be subject to brokerage also at a rate of $XX / XX% per trade.  [Growth portfolio] The investment portfolio will have a high exposure to growth investments and be subject to greater market volatility. This means that your portfolio may rise and fall depending on prevailing market conditions.  The returns on the portfolio are not guaranteed. You may experience negative returns from time to time. Investing for the long term will assist in smoothing out volatility and negative returns.

58. Commence an Investment Portfolio via a Master Trust

We recommend that you invest into a diversified portfolio of investments via a Master Trust account in line with your Investment Risk Profile. This investment of $XXX will be sourced from your <Source of funds> and invested in XXX name / your name. Further details on the selection of underlying investments is provided later in this SoA. [Reinvest] We recommend that you reinvest income distributions back into the portfolio to maximise funds available for wealth creation. 44

[Cash] We recommend that distributions be paid to your cash account within the Master Trust, to make funds available for your cash flow needs.

Benefits:

 Professional Investment Fund Managers will assist in managing your investments.  Master Trust accounts provide consolidated reporting and allow you to view and track your investments in one place.  The recommended investment portfolio will be diversified across asset classes and market sectors according to your risk profile.  A blend of income and growth investments has been selected for your Risk Profile.  You can sell down your portfolio at any time.  Nominating <Owner> / yourself as the owner of the investment portfolio will mean that income and capital gains are assessed at your / their marginal tax rate.  [Reinvest] Income can be reinvested in your investments to increase funds invested and grow your wealth.  [Cash distributions] Income from the investment portfolio can be paid to the Master Trust cash account and accessed any time.

Points to Consider:

 Income and capital gains are pooled for all investors and then distributed according to the number of units held. This means that you / XXX may be impacted by the investment transactions of other investors.  There will be administration costs to manage the account.  Professional Fund Managers charge investment fees to manage your investments.  [Transaction costs] You will incur an exit fee / brokerage costs / break fees of $X to transfer from your existing cash / bank / term deposit / investment account.  The investment portfolio will have a high exposure to growth investments and be subject to greater market volatility. This means that your portfolio may rise and fall depending on prevailing market conditions.  The returns on the portfolio are not guaranteed. You may experience negative returns from time to time. Investing for the long term will assist in smoothing out volatility and negative returns.

59. Invest in a Diversified Portfolio of Managed Investments

We recommend that you invest into a diversified portfolio of managed investments in line with your Investment Risk Profile. This investment portfolio of $XXX will be sourced from your <Source of funds> and invested in XXX name / your name. Further details on the selection of underlying managed investments is provided later in this SoA. [Reinvest] We recommend that you reinvest income distributions back into the portfolio to maximise funds available for wealth creation. [Cash] We recommend that distributions be paid to your nominated cash account, to make funds available for your cash flow needs.

Benefits:

 Professional Investment Fund Managers will manage your investments.  The recommended investment portfolio will be diversified across asset classes and market sectors according to your Investment Risk Profile.  A blend of income and growth investments have been selected for your Risk Profile.  You can sell down your portfolio at any time.  Nominating <Owner> / yourself as the owner of the investment portfolio will mean that income and capital gains are assessed at your / their marginal tax rate.  [Reinvest] Income can be reinvested in your investments to increase funds invested and grow your wealth.  [Cash distributions] Income from the investment portfolio can be paid to your nominated cash account and accessed any time.

Points to Consider:

 Income on the investment portfolio will be assessable and subject to tax.  Capital gains on the investment portfolio will be subject to tax on sale of the underlying investment. Please seek tax advice prior to selling any portion of your portfolio.  Professional Fund Managers charge investment fees to manage your investments.  [Transaction costs] You will incur an exit fee / brokerage costs / break fees of $X to transfer from your existing cash / bank / term deposit / investment account.

 [Growth portfolio] The investment portfolio will have a higher exposure to growth investments and be subject to greater market volatility. This means that your portfolio may rise and fall depending on prevailing market conditions.  The returns on the portfolio are not guaranteed. You may experience negative returns from time to time.

Investing for the long term will assist in smoothing out volatility and negative returns.

60. Invest through a Regular Savings Plan

We recommend that you commence a regular savings plan of $XXX per month into your / the recommended XXX investment. We recommend that you make an initial investment of $2,000 to open the account. The money for this strategy will be sourced from <Source of funds>.

Benefits:

 You can start your wealth creation strategy without a lump sum to invest.  We estimate that with earnings, you will have $XXX extra in your investment / account after 12 months of regular investing.  [Minimum initial investment] You only need an initial investment of $XXX to commence this regular savings plan. This is much less than if you made a lump sum investment.  [No initial investment] You do not need an initial investment to commence this regular savings plan.  [Dollar cost averaging] Regular savings plans have the advantage of ‘dollar cost averaging’. This allows you to buy into an investment at the prevailing prices each month. This is most effective in a volatile market and provides smoothing of the entry price into the investment.  [Dollar cost averaging] The risk of investing a lump sum at a high price is reduced by the averaging of entry prices from regular investment.

Points to Consider:

 [Dollar cost averaging] Dollar cost averaging does not eliminate all market and investment risk. Your portfolio returns will still be subject to market volatility and investment performance.  Starting with a lower investment means that it will take longer to build an investment portfolio where further diversification can reduce some market or sector risk.  [Increase in Growth Exposure] The recommended investment has a higher allocation to growth investments than your current cash / savings / investment account. This will increase the volatility of your investment.  [Increase in Cash / Fixed Interest Exposure] The recommended investment is to a cash / fixed interest / term deposit investment. Whilst there is guaranteed income, you will not have exposure to capital growth as you would with shares or property and therefore the returns may be less.

61. Switch investments in your Portfolio

We recommend that you sell down your holding of <Name of Funds / shares> and purchase <Name of Funds / Shares>. [Cash shortfall] The difference in the buy and sell amounts will be sourced from / directed to your XXXX cash account. These changes to your portfolio take into consideration market research on the expected performance of these funds as well as the alignment to your Investment Risk Profile.

Benefits:

 Your portfolio will be aligned to your Investment Risk Profile.  The recommended Funds / stocks are considered appropriate investments as outlined in our market research.  Making changes at each review allows you to take advantage of new market opportunities which may improve your returns and increase your wealth.

Points to Consider:

 <Insert reason for sell down of funds / stocks>  <Insert reason for purchase of funds / stocks>  There will be transactions costs in selling down and purchasing investments.  If you do not implement the recommended changes, you run the risk of having your portfolio not aligned to your risk profile / having underperforming investments that may impact your wealth creation.  [Capital Gains] Selling down these investments will trigger capital gains. We recommend that you seek tax advice for exact calculations; we estimate the capital gains tax to be $XXX.

 Whilst extensive research has been conducted, there is no guarantee that the new investments will outperform the old ones. [Ongoing Service] We will review the allocation at your agreed ongoing review to adjust investments as required.

62. Rebalance your Investment Portfolio

We recommend that you rebalance your XXXX Investment portfolio in line with your Investment Risk Profile. We recommend that you sell down your holding of <Name of Funds / shares> and purchase <Name of Funds / Shares>. [Cash shortfall] The difference in the buy and sell amounts will be sourced from / directed to your XXX cash account. These changes to your portfolio take into consideration market research on the expected performance of these funds as well as the alignment to your Investment Risk Profile.

Benefits:

 Your portfolio will be aligned to your Investment Risk Profile  The recommended Funds / stocks are considered appropriate investments as outlined in our market research.  Making changes at each formal review allows you to take advantage of new market opportunities which may improve your returns and increase your wealth.  Rebalancing prevents the portfolio from drifting to higher risk levels than intended.  Rebalancing typically decreases portfolio risk.

Points to Consider:

 <Insert reason for sell down of funds / stocks>  <Insert reason for purchase of funds / stocks>  There will be transaction costs in selling down and purchasing investments.  If you do not implement these recommendations, you run the risk of having your portfolio not aligned to your risk profile / having underperforming investments that may impact your wealth creation strategy.  [Capital Gains] Selling down these investments will trigger capital gains. We recommend that you seek tax advice for exact calculations; we estimate the capital gains tax to be $XXX.  Whilst extensive research has been conducted, there is no guarantee that the new investments will outperform the old ones. [Ongoing Service] We will review the allocation at your agreed ongoing review to adjust investments as required.

63. Redeem your Investment/s

We recommend that you redeem your XXXX investment/s. This will give you access to approximately $XXX so that you can <Use of funds>. The proceeds from your investment should be directed to your XXX cash account / used to invest in XXX as per our recommendation.

Benefits:

 You will have the required funds for <Use of funds>.  We have recommended that you redeem XXX investment within your portfolio as <insert reason for fund selection>.

Points to Consider:

 [Capital gain] We estimate that you will have a capital gain of $XXX and based on your current marginal tax rate, the estimated tax would be $YYY. We recommend that you seek professional tax advice prior to the redemption being processed to confirm the tax liability.  [Transaction costs] There will be transactions costs in selling down and purchasing investments.  You will have less invested funds to meet your wealth creation goals.

64. Establish a Discretionary Trust

We recommend that you establish a discretionary trust for the management and protection of your XXXX investments. [Transfer Funds in] The funds to transfer into the Trust are as follows:  <List any assets to be transferred to the trust and dollar value>

Benefits:

 Discretionary trusts provide protection of assets in the event of, for example, divorce and bankruptcy. This helps manage concerns about future events and the impact on beneficiaries to the Trust.  Setting up a discretionary trust can help in structuring your Estate Plan for the future by giving clarity to the allocation of income and assets of the Estate.  The Trustee of the Trust will have discretion as to how and to whom they pay income and assets of the trust, which can assist in managing tax for beneficiaries.  Assets held in the trust may be quarantined (except in NSW) from challenges to an estate from disgruntled beneficiaries.  The trustee is free to distribute trust income to as many beneficiaries as possible, and in proportions that take best advantage of those beneficiaries' personal marginal tax rates. The beneficiaries then pay the tax on distributions made to them.  Unlike a superannuation fund, adding assets within a discretionary trust can be done with no asset cap.

Points to Consider:

 A trust does not have to pay income tax on income that is distributed to the beneficiaries but does have to pay tax on undistributed income.  Trusts can be complex and time consuming to administer. It costs money to set them up and there are generally ongoing legal and accounting fees.  You will require legal advice on the establishment and inclusions of the Trust Deed. The costs may be significant and should be considered in light of the benefits the Trust can provide.  Trust income is assessable for Centrelink purposes and may impact beneficiary Centrelink entitlements.  Circumstances change and your preference for allocation of the assets and income of the Trust may also change. It is important to review the Trust and associated instructions / documentation regularly to ensure it continues to reflect your wishes.  Franking credits cannot be passed to the beneficiaries of the Trust.  [In-specie transfer] Transferring existing assets in-specie to the Trust may trigger capital gains and therefore a tax liability for the owner of the asset. Please seek professional tax advice prior to transferring any assets.  Transaction costs will be payable on the transfer of assets into the Trust.

65. Establish a Family Trust

We recommend that you establish a family trust for the management and protection of your XXXX investments. [Transfer Funds in] The funds to transfer into the Trust are as follows:  <List any assets to be transferred to the trust and dollar value>  Cash from your XXX account that will be invested into a diversified portfolio of investments. Details of the investments recommended are outlined later in this SoA.

Benefits:

 Family trusts provide protection of assets in the event of, for example, divorce and bankruptcy. This helps manage concerns about future events and the impact on family members of the Trust.  The Trustee of the Trust will have discretion as to how and to whom they pay income and assets of the trust, which can assist in managing tax for beneficiaries.  Franking credits from share dividends can be passed directly to beneficiaries.  Assets held in the trust may be quarantined (except in NSW) from challenges to an estate from disgruntled beneficiaries.  The trustee is free to distribute trust income to as many beneficiaries as possible, and in proportions that take best advantage of those beneficiaries' personal marginal tax rates. The beneficiaries then pay the tax on distributions made to them.  Unlike a superannuation fund, adding assets within a family trust can be done with no asset cap.

Points to Consider:

 A trust does not have to pay income tax on income that is distributed to the beneficiaries but does have to pay tax on undistributed income.  Trusts can be complex and time consuming to administer. It costs money to set them up and there are generally ongoing legal and accounting fees.

 You will require legal advice on the establishment and inclusions of the Trust Deed. The costs may be significant and should be considered in light of the benefits the Trust can provide.  Trust income is assessable for Centrelink purposes and may impact beneficiary Centrelink entitlements.  Circumstances change and your preference for allocation of the assets and income of the Trust may also change.

It is important to review the Trust and associated instructions / documentation regularly to ensure it continues to reflect your wishes.  [In-specie transfer] Transferring existing assets in-specie to the Trust may trigger capital gains and therefore a tax liability for the owner of the asset. Please seek professional tax advice prior to transferring any assets.  Transaction costs will be payable on the transfer of assets into the Trust.

66. Commence an Account-Based Pension

We recommend that you commence an account-based pension to provide you with an income stream in your retirement. We recommend that you draw the minimum $XXX per year payable monthly / quarterly / annually. Funds will be rolled over from your existing XXX Superannuation Fund. [Partial rollover] We recommend that you leave $XXX in your YYY Fund to allow for further contributions / to pay insurance premiums.

Benefits:

 This account-based pension income of $XXX p.a., when combined with your Centrelink Age Pension of $XXX p.a. and Investment income of $YYY p.a., will meet your retirement income of $ZZZ each year.  You can nominate a reversionary beneficiary so that upon death, <Spouse name> can continue to receive your account-based pension as a pension. Alternatively, you can nominate beneficiaries to your account-based pension so that the balance can be paid to them upon death.  Pension payments will be made from the cash account of your account-based pension, avoiding the drawdown of your investments to meet pension payments.  You can access your balance at any time to meet your cash flow needs.  You can increase your income payments above the minimum payment.  [Over 60] Account-based pension income is tax-free and capital gains are also tax-free.  [Under 60] The tax-free portion of your account-based pension balance will be returned as tax-free pension payments. This portion is calculated at commencement of the pension.  The underlying investments will be invested in line with your Investment Risk Profile.  Our estimates indicate that your account-based pension will last for XX years if you draw the recommended amount each year. Please refer to the financial projections at the end of this SoA for further details.

Points to Consider:

 You must draw at least the minimum pension payment each year. The amount is based on your age and balance.  The current minimum pension payment has been reduced to half the normal rate to provide relief from the downturn in markets attributable to the COVID pandemic. These rates are set to return to the standard rates from 1 July 2023.  If you choose to withdraw more than the recommended income payment, your balance will reduce at a faster rate and your funds may not last to life expectancy as estimated.  Account-based pensions are now subject to a transfer balance cap of $1,700,000. Any excess over this threshold will need to be retained in superannuation and subject to the concessional tax rates that apply to super.  There is no guarantee that your funds will last as long as you need them. The balance is subject to market movements and may rise and fall over time.  [Under 60] Your pension payments will be taxable. We estimate a taxable portion of XX% and you will pay $XXX in tax on your pension payments in the first year.  Minimum payments are pro-rated when the account-based pension commences part way through the financial year. This amount must be paid out of the Fund before the account-based pension can be closed or rolled back to super.  Account-based pensions are considered a financial investment for Centrelink purposes and therefore any income paid is deemed and assessable for means testing.  Account-based pensions can only be purchased with money from superannuation.  [Reversionary beneficiary] The reversionary beneficiary may, at the time of your death, have the option to either: o Continue to receive the pension payments until the funds are exhausted. o Receive a lump sum (less any fees) of the account value at the time of payment.

67. Reboot your Account-based Pension

We recommend that you roll your pension back to superannuation to combine with your super / pension balance before recommencing a new account-based pension (Account-based pension). We estimate that your new balance will be a combined value of $XXX. We recommend that you continue to draw an income of $XXX per annum, payable monthly / quarterly / yearly, to help meet your retirement income needs. [Full rollover] Once the balances are combined and rolled over, you will no longer have any funds in superannuation. Your account-based pension will be invested in line with your Investment Risk Profile.

Benefits:

 You will have more funds to draw on for your retirement income needs.  You will pay less tax as Account-based pensions are tax free whereas superannuation earnings are taxed at 15%.  You can nominate <Spouse name> as a reversionary beneficiary so that upon death, <Spouse name> can continue to receive your Account-based pension as a pension. Alternatively, you can nominate beneficiaries to your Account-based pension so that the balance can be paid to them upon death.  You can access your balance at any time to make withdrawals.  You can increase your income payments above the minimum payment.  [Over 60] Account-based pension income is tax-free and capital gains are also tax free.  [Under 60] The tax-free portion of your account-based pension balance at commencement will be returned as tax-free pension payments.  This Account-based pension income of $XXX, when combined with your Centrelink Age Pension of $XXX and Investment income of $YYY, will meet your retirement income of $ZZZ each year.  The underlying investments will be invested in line with your Investment Risk Profile.  Our estimates indicate that your Account-based pension will last for XX years if you draw the recommended amount each year. Please refer to the financial projections at the end of this SoA for further details.

Points to Consider:

 You must draw at least the minimum pension payment each year. The amount is based on your age and balance.  The current minimum pension payment has been reduced to half the normal rate to provide relief from the downturn in markets attributable to the covid pandemic. These rates are set to return to the standard rates from 1 July 2023.  If you choose to withdraw more than the recommended income payment, your balance will reduce at a faster rate and your funds may not last to life expectancy as estimated.  Account-based pensions are now subject to a transfer balance cap of $1,700,000. Any excess over this threshold will need to be retained in superannuation and subject to the concessional tax rates that apply to super.  There is no guarantee that your funds will last as long as you need them. The balance is subject to market movements and may rise and fall over time.  [Under 60] Your pension payments may be subject to tax. We estimate that with a taxable portion of XX%, you will pay $XXX in tax on your pension payments in the first year.  Minimum payments are pro-rated when the Account-based pension commences part way through the financial year.  [Reversionary beneficiary] The reversionary beneficiary may, at the time of your death, have the option to either: o Continue to receive the pension payments until the funds are exhausted. o Receive a lump sum (less any fees) of the account value at the time of payment.  Account-based pensions are considered a financial investment for Centrelink purposes and therefore any income paid is deemed and assessable for means testing.  [Pre-2015 Account-based pension Centrelink client] As your existing Account-based pension started before 1 July 2015, it has favourable Centrelink treatment. Rolling back to super will mean you lose this. In certain circumstances, this can reduce your Centrelink payments. We have estimated that there will be no impact on your entitlements.

68. Commence an Annuity Income Stream (Super money)

We recommend that you commence a lifetime / term annuity with $XXX to provide you with an income stream in your retirement. We recommend an income payment of $XXX per annum, payable monthly / quarterly / annually. Funds will be rolled over from your XXX Superannuation Fund. [Indexed] Your annuity income payment will be fully / partially indexed in line with CPI.

Benefits:

 Your income payment will be guaranteed for your lifetime / for XX years.  [Indexation] Your payments will increase in line with inflation to avoid erosion of your income payments.  [RCV] Your annuity will have a Residual Capital Value of $X.  [Over 60] You will pay less tax as Annuities are tax free unlike superannuation that is concessionally taxed.  You can nominate a reversionary beneficiary so that upon death, <Spouse name> can continue to receive your Annuity income. Alternatively, you can nominate beneficiaries to your Annuity so that the residual value, if any, can be paid to them upon death.  This Annuity income of $XXX, when combined with your Centrelink Age Pension of $XXX, Account-based pension income of $XXX and Investment income of $YYY, will meet your retirement income of $ZZZ each year.  [Increase Age Pension] Your Annuity is treated more favourably for Centrelink means testing. As a result, we estimate your Centrelink Age Pension payment will increase by $XXX per fortnight ($XXX p.a.).

Points to Consider:

 [No withdrawal period] You will not have access to the balance of your Annuity.  [Withdrawal period] You will have a period of time within the term of your annuity where you can still access the balance. Full details are provided in the annuity quote attached.  You cannot vary the amount of income you receive from the Annuity once it has started.  [Nil RCV] Your annuity will not have a residual value to pay upon death.  [Under age 60] The taxable component of your Annuity payment will be taxed at your marginal tax rate of X% with a tax offset of 15%.  Annuities purchased with super money are now subject to a transfer balance cap of $1,700,000. Any excess over this threshold will need to be retained in superannuation and subject to the concessional tax rates that apply to super.

69. Commence an Annuity Income Stream (non-super money)

We recommend that you commence a lifetime / term annuity with $XXX to provide you with an income stream in your retirement. We recommend an income payment of $XXX per annum, payable monthly / quarterly / annually. Funds will be drawn from your cash account / bank account / CMT / XXX investment. [Indexed] Your annuity income payment will be fully / partially indexed in line with CPI.

Benefits:

 Your income payment will be guaranteed for your lifetime / for XX years.  [Indexation] Your payments will increase in line with inflation to avoid erosion of your income payments.  You can commence an Annuity with non-superannuation savings.  [RCV] Your annuity will have a Residual Capital Value of $X.  You can nominate a reversionary beneficiary so that upon death, XXX can continue to receive your Annuity income. Alternatively, you can nominate beneficiaries to your Annuity so that the residual value, if any, can be paid to them upon death.  This Annuity income of $XXX, when combined with your Centrelink Age Pension of $XXX, Account-based pension income of $XXX and Investment income of $YYY, will meet your retirement income of $ZZZ each year.

Points to Consider:

 [No withdrawal period] You will not have access to the balance of your Annuity.  [Withdrawal period] You will have a period of time within the term of your annuity where you can still access the balance. Full details are provided in the annuity quote attached.  You cannot vary the amount of income you receive from the Annuity once it has started.  [Nil RCV] Your annuity will not have a residual value to pay upon death.  Based on the Annuity terms recommended, we estimate that your assessable income portion of the income payment will be $X in the first year. You will pay tax at your marginal tax rate of XX%. We recommend that you seek professional tax advice as to the actual tax payable on this income.

70. Take Account-Based Pension benefit as a Lump Sum

We recommend that you take your late husband’s / wife’s account-based pension (Account-based pension) proceeds of $XXX as a lump sum.

[Choose option]

[Pay debt / expenses] You will be able to use this money to pay out your mortgage / other expenditure. [Super] You can then recontribute this money into superannuation as a non-concessional contribution so that it does not affect your Centrelink entitlements prior to age pension age. [Super] You can then recontribute this money into superannuation as a non-concessional contribution so that it increases the tax-free balance of your super for your adult children beneficiaries. [Cash] This money should be paid into your XXX cash / bank account to enable these payments / contributions.

Benefits:

 [Pay debt] You can reduce debts owed / can be debt free.  [Estate Planning] As your adult children are not tax-dependents, recontributing to super will increase the balance of your super that can pass to them tax free upon your death.  [Centrelink] As you are under the Age-pension age, Account-based pensions are assessable and will affect your Centrelink payments. Contributing to super will protect them from being assessed until you reach age pension age.

Points to Consider:

 [Under 75 super] As you are under age 75 you may recontribute these funds to Super as a non concessional contribution at any time. Please refer to the Super Flyer for criteria.  [Super] There are limits to how much you can contribute to super. The current non-concessional contribution cap is $110,000, or $330,000 by using the bring-forward rule. The latter is essentially making three years contributions in the one year.  [Cash] Once withdrawn from the Account-based pension, you will not be able to put the money back in.  [Super] You will not be able to access these funds until you meet a condition of release such as permanent retirement from the workforce.

71. Take Account-Based Pension Death Benefit as an Income Stream

We recommend that you take your late husband’s / wife’s account-based pension (Account-based pension) proceeds of $XXX as an income stream. We recommend that you draw the minimum $XXX per year payable monthly / quarterly / annually. Your new Account-based pension will be invested in line with your Investment Risk Profile.

Benefits:

 You can nominate beneficiaries to your Account-based pension so that the balance can be paid to them upon death.  You can access your balance at any time to make withdrawals.  You can nominate your income payments above the minimum payment.  [Over age 60] Account-based pension income is tax-free and capital gains are also tax free.  This Account-based pension income of $XXX, when combined with your Centrelink Age Pension of $XXX and Investment income of $YYY, will meet your retirement income of $ZZZ each year.  The underlying investments will be invested in line with your Investment Risk Profile.  Our estimates indicate that your Account-based pension will last for XX years if you draw the recommended amount each year. Please refer to the financial projections in the attachments to this SoA for further details.

Points to Consider:

 You must draw the minimum pension payment each year. The amount is based on your age and balance.  The current minimum pension payment has been reduced to half the normal rate to provide relief from the downturn in markets attributable to the covid pandemic. These rates are set to return to the standard rates from 1 July 2023.  If you choose to withdraw more than the recommended income payment, your balance will reduce at a faster rate and your funds may not last to life expectancy as estimated.

 Account-based pensions are now subject to a transfer balance cap of $1,700,000. Any excess over this threshold will need to be retained in superannuation and subject to the concessional tax rates that apply to super. Your new pension will contribute to your cap.  There is no guarantee that your funds will last as long as you need them. The balance is subject to market movements and may rise and fall over time.  Minimum payments are pro-rated when the Account-based pension commences part way through the financial year.  Account-based pensions are considered a financial investment for Centrelink purposes and therefore any income paid is deemed and assessable for means testing.

72. Rollover your Defined Benefit Fund

We recommend that you rollover your Defined Benefit Fund now that you have ceased employment with <Employer name>. The estimated value of the rollover, net of taxes, is $XXX. This will be rolled into an accumulation fund and invested according to your Investment Risk Profile.

Benefits:

 Your accumulation fund will be invested according to your risk profile.  You can now add your own contributions to your retirement savings in one Fund.  Your fund portfolio will be market-linked, allowing you to have exposure to investments with capital growth and income.  You can access your superannuation once you meet a condition of release such as retirement.  You will have greater control over the investment of your superannuation savings.  We estimate the value of your accumulation fund at your retirement age of XX to be $XXX, as compared to the estimated value of your defined benefit at retirement of $YYY. Further details regarding these calculations and assumptions are provided in the projections at the end of this SoA.

Points to Consider:

 Once you have withdrawn from the <DBF Name> Defined Benefit Fund, you will lose access to the associated retirement pension.  Superior returns are not guaranteed in the recommended accumulation fund. As they are market-linked they are subject to market volatility and the value may go up and down over time.  Estimates are based on the quote provided by XXX and may vary when the actual payment is made.  Additional contributions tax may be payable from the balance on withdrawal. We estimate this tax to be $XXX. We strongly advise that you receive specialist tax advice before making the rollover.  Rolling out of your defined benefit scheme early means that you won’t maximise the value of your potential pension from this Fund.  Some defined benefit funds have very favourable tax and Centrelink treatment. You will lose this when you rollover to an accumulation fund.

73. Retain your Defined Benefit Fund

We recommend that you retain your XXX Defined Benefit Fund. This will give you access to a retirement pension of approximately $XXX p.a. at retirement.

Benefits:

 Your defined benefit pension is generous and based on our estimates, far superior to what may be provided if you rolled over to an accumulation style fund. Please refer to financial projections at the end of this SoA for further detail on these comparisons.  This Fund receives concessional tax treatment as well as favourable Centrelink treatment.  The pension at retirement is based on your final salary and the number of years worked with <Employer name>.

Point to Consider:

 You have no control over how the Fund is invested.  Strict conditions apply to contributions, tax and retirement funding and may impact your final pension.  The formula used to calculate your final benefit is subject to change.  Some Defined Benefit Funds lack liquidity which can impact their ability to pay pensions.

74. Change your Account-Based Pension Income Payment

We recommend that you increase / decrease your account-based pension (Account-based pension) payment to $XXX per annum, payable monthly / quarterly / yearly. [Increase] This will give you required funds to meet your increased living costs / fund your annual holidays / purchase a new car / purchase XXX.

Benefits:

 Your pension payments will be more aligned to your budgeted expenses.  You can change these income payments at any time.  [Over 60] Account-based pension income is tax-free.  This Account-based pension income of $XXX, when combined with your Centrelink Age Pension of $XXX and Investment income of $YYY, will meet your retirement income of $ZZZ each year.  Our estimates indicate that your Account-based pension will last for XX years if you draw $XXX each year. Please refer to the financial projections at the end of this SoA for further details.

Points to Consider:

 You must draw the minimum pension payment each year. The amount is based on your age and balance.  The current minimum pension payment has been reduced to half the normal rate to provide relief from the downturn in markets attributable to the covid pandemic. These rates are set to return to the standard rates from 1 July 2023  If you choose to withdraw more than the recommended income payment, your balance will reduce at a faster rate and your funds may not last to life expectancy as estimated.  There is no guarantee that your funds will last as long as you need them. The balance is subject to market movements and may rise and fall over time.

75. Invest using a Model Portfolio

We recommend that you invest into a model portfolio of shares / managed funds. This portfolio is aligned to your Investment Risk Profile.

Benefits:

 Model portfolios provide a pre-constructed portfolio designed to maximise performance for the chosen level of risk, income and growth.  [Shares] Share dividend income is tax-effective when franking credits are provided.  You will hold the shares / managed funds directly.  You will receive consolidate reporting on the portfolio.  You can sell down the portfolio at any time should you need the funds for unforeseen expenditure.  [Managed Funds] Managed Funds give you access to a greater level of diversification across companies, sectors and markets as well as access to professional investment management expertise.

Points to Consider:

 [Increase in Growth Exposure] The recommended investment has a higher allocation to growth investments than your current cash / savings / investment account. This will increase the volatility of your investment.  [Increase in Cash / Fixed Interest Exposure] The recommended investment is to a cash / fixed interest / term deposit investment. Whilst there is guaranteed income, you will not have exposure to capital growth as you would with shares or property and therefore the returns may be less.  There will be costs involved should you sell down your portfolio in the future.  [Model portfolio cost] You will pay an administration fee for management of the model portfolio.  The portfolio may not always align closely with your Investment Risk Profile. This will need to be adjusted from time to time.

76. Re-contribute to your Superannuation

We recommend that you withdraw $XXX from your XXX Superannuation Fund and re-contribute it back as a nonconcessional contribution into the same superannuation account.

Benefits:

 Your withdrawal will be made up of $XXX tax free and $XXX taxable components. When you re-contribute this to super, it will be tax free. This is especially favourable for estate planning where non-dependants may receive the proceeds of your superannuation. The tax-free component will be received tax free, regardless of their dependency status.  [Over 60] As you are over 60, there is no tax payable on the taxable component of your withdrawal.  [Below low cap] As your taxable component is below the low-cap threshold, there is no tax payable on the taxable component of your withdrawal.

Points to Consider:

 You must meet a condition of release to be able to withdraw from your superannuation.  You must be eligible to contribute to make the re-contribution back into superannuation.  [Tax payable] There will be $XXX tax payable on the taxable component of your superannuation at withdrawal. This will be deducted from the withdrawal providing a net payment of $YYY.  Transaction costs may apply to the sell down and re-purchase of investments.  A non-concessional contribution cap of $110,000 applies to the amount you put back into superannuation. The three year bring-forward rule allows you to make a $330,000 contribution. It is important you have not made any other contributions in the preceding three years when using the bring-forward rule. Please let us know if you have omitted to tell us of prior contributions that may affect these caps.

77. Nominate <Spouse name> as a Reversionary Beneficiary

We recommend that you nominate <Spouse name> as a reversionary beneficiary to your pension income stream. This will ensure your income stream continues in the event of your death, passing directly to <Spouse name>.

Benefits:

 Reduced administration and paperwork upon death.  <Spouse name> will continue to receive a tax-free income stream.  Income can be modified to adapt to changing lifestyle needs.

Points to Consider:

 [Existing pension] <Spouse name> will not be able to combine the new pension with their existing pension; it must remain separate.  The new pension will be subject to the transfer balance cap of $1,700,000. Any excess over this threshold will need to be returned to superannuation and subject to the concessional tax rates that apply to super.

78. Retire on an Income of $<Retirement income>at age <Retirement age>

You would like to retire at age <Retirement age> on an income of $<Retirement income> p.a. We recommend that your retirement income be sourced as follows:  Account-based Pension of $XXX p.a.  Annuity income of $XXX p.a.  Investment Dividend / Distribution income of $XXX p.a.  Interest on cash accounts of $XXX p.a.  Rental income of $XXX p.a.  Centrelink/DVA age pension of $XXX p.a.  Drawdown on investments of $XXX p.a. We estimate your retirement income to be $<Retirement income>p.a. which exceeds / meets your retirement income goal.

Benefits:

 You will have your desired level of income in retirement to meet your budgeted lifestyle expenses.  [Holiday] You will be able to take an annual holiday.  You will have adequate cash flow to <list specific expenses if itemised>.  We estimate that drawing this level of income, your funds will last XX years / will continue well beyond your life expectancy. Please refer to our financial projections at the end of this SoA for further details.

 [No asset selldown] You will not have to sell down your assets / investments to meet your income needs.

Points to Consider:

 [Funds won’t last] Our estimates indicate that your funds will not last your life expectancy if you draw the level of income you desire. You may need to re-evaluate your expenditure or run the risk of relying on Centrelink in the latter years of your retirement.  Our estimates of your retirement funding are based on numerous assumptions as outlined in the financial projections of this SoA. There is no guarantee that your funds will last as predicted.  Whilst due care has been taken to budget your expenses, your actual expenditure might be higher. This may impact the longevity of your assets in retirement.  [Growth Profile] Your portfolio is subject to market volatility and a decrease in the value of your investments will reduce the income available to draw from these investments.

79. Commence a Transition to Retirement Income Stream with salary sacrifice

We recommend that you commence a transition to retirement income stream by rolling $XXX from your YYY Super Fund, leaving a balance in super of $ZZZ. This will help to supplement your income now that you have reduced your work hours / pay off your mortgage in preparation for retirement / pay for <expense> as you cannot afford to pay this from other income sources. We recommend that you draw the minimum pension of $XXX p.a. / an amount of $XXX p.a. / the maximum of 10%.

We recommend that you salary sacrifice an amount of $XXX p.a. to contribute to your superannuation, to top up your retirement savings from tax-effective income.

Benefits:

 [Cash reserve] Maintaining 12, 18, XX months of pension payments in cash will provide liquidity for payments without the need to sell down your investments.  You can access your superannuation prior to retirement as you are over preservation age.  [Over 60] Your transition to retirement income stream income payments will be tax free as you are over age 60.  You will be able to meet your ongoing living expenses / purchase XXX / pay your mortgage / loan.  You can replace the income you have drawn with tax-effective superannuation contributions from your pre-tax income.  [Under 60] Your income tax will reduce as the pension income that is taxable can be reduced by a 15% tax offset.  Salary sacrifice contributions are tax effective as your marginal tax rate is XX% and superannuation is charged at a rate of 15%.  The level of income drawn can be varied each year (within the minimum 2 / 4% and maximum 10%) in the event your needs change.  We estimate you will increase your retirement balance by an extra $XXX over in the next XX years.  Our projections indicate that you may have annual tax savings of approximately $XXX per annum.  [Cash flow neutral] Your take home pay will remain the same.

Points to Consider:

 The current minimum pension payment has been reduced to half the normal rate to provide relief from the downturn in markets attributable to the covid pandemic. These rates are set to return to the standard rates from 1 July 2023.  [Negative cash flow] You will be spending more drawing the transition to retirement income stream than you will be saving through your super contributions. This will mean you have less available at retirement.  [Under 60] As you are under 60, you will pay your marginal tax rate on the taxable portion of your transition to retirement income stream income. You will receive a 15% tax offset on tax paid.  Investment earnings with a TTR income stream are taxable at up to 15%  [Insurance] As you have cover in place in your existing superannuation, we have recommended that you leave enough money in the account to avoid the insurance lapsing.  The maximum you can draw from a transition to retirement income stream is 10% of the Fund balance as determined at commencement.  A concessional cap of $27,500 p.a. applies to concessional contributions. [Balance less than $500,000] As your balance is less than $500,000, you can carry forward unused concessional contributions for up to 5 years.  Exceeding the concessional cap will result in additional tax payable.

 You will not be able to access the balance of your pension or super until you meet a condition of release such as retirement.  Salary / wage increases may result in exceeding the cap. Please contact our office so that we can amend the contribution amount.  The Transfer Balance cap for income streams means that only $1,700,000 can be transferred from super at retirement. The remaining balance will need to stay in super.

80. Commence a Transition to Retirement Income Stream <no salary sacrifice>

We recommend that you commence a transition to retirement income stream by rolling $XXX from your YYY Super Fund, leaving a balance in super of $ZZZ. This will help to supplement your income now that you have reduced your work hours / pay off your mortgage in preparation for retirement / pay for <expense> as you cannot afford to pay this from other income sources. We recommend that you draw the minimum pension of $XXX p.a. / an amount of $XXX p.a. / draw the maximum of 10%.

Benefits:

 You can access your superannuation prior to retirement if you are over preservation age.  [Over 60] Your transition to retirement income stream income payments will be tax free as you are over age 60.  You will be able to supplement your income now that you have reduced your work hours / pay off your mortgage in preparation for retirement / pay for <expense> as you cannot afford to pay this from other income sources.  [Under age 60] Your income tax will reduce as the pension income that is taxable can be reduced by a 15% tax offset.  [Cash reserve] Maintaining 12, 18, XX months of pension payments in cash will provide liquidity for payments without the need to sell down your investments.  The level of income drawn can be varied each year (within the minimum 2 / 4% and maximum 10%) in the event your needs change. COVID MINIMUM IS 2%

Points to Consider:

 You will be spending more from drawing the transition to retirement income stream than you will be saving

through your super contributions. This will mean you have less available at retirement.

 The current minimum pension payment has been reduced to half the normal rate to provide relief from the downturn in markets attributable to the covid pandemic. These rates are set to return to the standard rates from 1 July 2023.  [Under 60] As you are under 60, you will pay your marginal tax rate on the taxable portion of your transition to retirement income stream. You will receive a 15% tax offset on tax paid.  Investment earnings with a TTR income stream are taxable at up to 15%  [Insurance] As you have cover in place in your existing superannuation, we have recommended that you leave enough money in the account to avoid the insurance lapsing.  The maximum you can draw from a transition to retirement income stream is 10% of the balance of the Fund.

81. Transfer your UK Pension to an Australian Super Fund

We recommend that you transfer your UK Pension of approximately £XXX, to your existing XXX Super Fund / to the recommended Australian-based Super Fund.

Benefits:

 You can amalgamate your Australian and UK retirement savings here in Australia.  You can choose how these funds are invested within your superannuation fund.  Your retirement savings will be in a concessionally taxed environment.  Estate Planning options are more generous under Australian law than UK pension law. You can nominate beneficiaries other than your spouse.  Once you are over 60, a pension paid from super is tax-free income in Australia.  The UK and Australia have a tax agreement in place which limits taxation to the country of residence, so you only pay it once. Based on your current residency status, you will pay tax in Australia / the UK.

Points to Consider:

 The Fund accepting the transfer must be a Qualifying Recognised Overseas Pension Scheme (QROPS). Changes to rules regarding pensions in the UK in April 2015 have made it more difficult for Funds to qualify. We have confirmed that your Fund / the Fund recommended here is a QROPS Fund.  You cannot get access to your UK pension funds until you are over 55. There is no early release as we have here in Australia.  Your transfer will be treated as a non-concessional contribution and have to meet appropriate contribution caps.  A non-concessional contribution cap of $110,000 applies to the amount you put back into superannuation. The three year bring-forward rule allows you to make a $330,000 contribution. It is important you have not made any other contributions in the preceding three years when using the bring-forward rule. Please let us know if you have omitted to tell us of prior contributions that may affect these caps.  Income streams paid from super at retirement are now subject to a transfer balance cap of $1,700,000. Any excess over this threshold will need to be retained in superannuation and subject to the concessional tax rates that apply to super.  There are significant transaction costs associated with transferring your pension from the UK. We estimate these costs to be $XXX.  The transfer may take considerable time before it makes it to your Australian Super Fund.  There is a risk that currency movements may adversely impact the value of your UK Pension.

82. Withdraw $XXX from your Account-based Pension

We recommend that you make a withdrawal (commutation) of $XXX from your <Account-based pension Name> accountbased pension. This will help you to pay for your holiday / a new car / a new fridge / other. We recommend this withdrawal be taken from your account-based pension cash account / other investment option.

Benefits:

 You have access to funds within your account-based pension at any time as required, such as now.  [Centrelink reduced assets change in payment] We estimate that your Centrelink benefit payment will increase from $XXX per fortnight to $XXX per fortnight. This is an annual increase of $XXX p.a. as a result of your pension balance reducing.  No tax is payable on withdrawal from your account-based pension.  Your account-based pension and income payments will continue unchanged for this financial year. The withdrawal will reduce your balance and the minimum pension payable for next financial year.

Points to Consider:

 You will have less money for future years. Making withdrawals will impact the longevity of your account-based pension. We estimate that your account-based pension will last XX years. Please refer to our financial projections later in this SoA for further details.  There may be transaction costs to sell down your portfolio.  You cannot add money to an account-based pension and you will need to satisfy superannuation contributions rules to add back to super.

83. Make a Downsizer Contribution to Super

We recommend that you contribute the proceeds of $XXX from the sale of your home to your YYY Superannuation Fund. The remaining balance of the proceeds should be directed to your cash account as an emergency cash reserve / invested into XXX / used to pay for <outline expenses>.

Benefits:

 You can contribute these proceeds tax-free to your superannuation to boost your retirement savings.  You will have more money invested in the concessionally taxed superannuation environment and available to rollover to a tax-free account-based pension in retirement.  Downsizer contributions form part of the tax-free component of your superannuation savings, making them taxeffective in estate planning.  The contribution will not form part of the balance of your superannuation until the end of the financial year, meaning that it won’t be means tested for Centrelink purposes until the next financial year.

Points to Consider:

 You can contribute up to $300,000 as a one-off downsizer contribution for both yourself and your partner.  To be eligible to make a downsizer contribution, you must: o Be over 60 o Have a settlement date for your property after 1 July 2018 o Have held the home for more than 10 years o Made the contribution within 90 days of receiving the proceeds of sale o Have your home in Australia and not a caravan, boat or other mobile home. o Ensure the proceeds from sale are not subject to capital gains tax. o Complete the Downsizer Contribution Form.  This contribution will count towards your transfer balance cap of $1,700,000. This is the maximum you can have in an income stream that is tax-free in retirement.

84. Borrow to invest via your Self-Managed Super Fund - Property

We recommend that you borrow to invest in XXX property within your Self-Managed Super Fund (SMSF). To meet SMSF rules, this will need to be a Limited Recourse Borrowing Arrangement (LRBA) where only one asset is held against the loan. We recommend that you use existing SMSF cash / XXX investments to provide for a deposit of $XXX on the property purchase. We then recommend that you borrow the remaining $YYY which equates to XX% of the property value. Transaction costs for the loan and property will be funded from your SMSF cash account.

Process:

1. Review your SMSF Trust Deed to ensure it allows for borrowing funds. 2. Review your investment strategy to ensure the property holding is within the desired asset allocation for the Fund. 3. Calculate the amount required to borrow and engage a lending professional to provide finance. 4. Establish a Bare trust and corporate Trustee in consultation with a Solicitor for the ownership of the property. Make sure the property Title is in the Bare Trust name, rather than the SMSF. 5. Document Trustee meeting minutes for this process.

Cost Schedule:

Property Value

Deposit

Stamp Duty

Legal costs (inc. BARE trust/trustee)

Loan fees

Advice fees

Accounting fees

Total upfront fees

$XXX $XXX $XXX $XXX $XXX $XXX $XXX

$XXX

Source from SMSF cash/ LRBA SMSF cash SMSF cash SMSF cash SMSF cash SMSF cash SMSF cash

Benefits:

 You can purchase XXX property to hold within your SMSF. Without the loan, you would not have enough money in super to make this purchase.  [Commercial property] You can own your business premises, giving you further control over the fixed operating costs of your business.  Recourse is limited to the property the loan relates to; other SMSF assets are protected.  Gearing can magnify returns by allowing you increased exposure to growth markets such as property. This may increase your benefits at retirement.  [Property bias] This property is in line with your preference to hold property as the growth portion of your portfolio rather than shares.  Rental income will be taxed at concessional superannuation rates of 15% rather than your marginal tax rate.

Points to Consider:

 The property must meet the ‘sole purpose test’ which is to provide retirement benefits for the SMSF members.  The property must be a ‘single acquirable asset’ which normally means, for example, one property title not two.  A Security Trust is essentially a bare trust arrangement established specifically for the purposes of one entity holding an Asset on trust for another entity. Under such an arrangement, legal title to the Asset is acquired by the Security Trustee, while the SMSF Trustee generally obtains an absolute beneficial interest in the Asset.  The property must be owned by the BARE Trust not the SMSF to avoid breaches relating to payment of benefits.

 The property purchase must be at arm’s length and not from a related party (with the exception of commercial property).  Where a loan is provided by a financial institution to the SMSF Trustee, the financial institution may require the

Security Trustee to be a company. In addition, some financial institutions will also require that the SMSF Trustee also be a company (and not individuals). It is important to determine the requirements of the lender in all circumstances.  You must review your SMSF Trust Deed to ensure that this significant property asset allocation is within the

Investment Strategy guidelines.  There are limitations as to the type of property that you can purchase. Please confirm that it complies prior to purchasing the property.  Lending for LRBA purposes within super is restrictive and more expensive than regular investment lending. You need at least a 30% deposit (depending on the lender).  You can borrow the money from a related party that is not a bank as long as the terms of the loan are commercial.  LRBA loans must be repaid on a principal and interest basis making the repayments higher than a traditional interest-only investment loan.  The limited recourse structure means that the borrower can only use the property as security for the loan.  [Commercial property for business] Your business must lease the property at commercial rental rates.  As property is exposed to market conditions, the value can rise and fall.  Gearing can also magnify losses due to the increased exposure to markets.  If the Funds current cash flow of contributions and earnings is not adequate to meet the loan repayments, you may need to make additional contributions.  This strategy will / will not result in a credit to your Transfer Balance cap for retirement. This will / will not impact the benefit you are able to transfer to the tax-free pension phase in retirement.

85. Borrow to invest via your Self-Managed Super Fund - Investment

We recommend that you borrow to invest in XXX investment within your Self-Managed Super Fund (SMSF). To meet SMSF rules, this will need to be a Limited Recourse Borrowing Arrangement (LRBA) where only one asset is held against the loan. We recommend that you use existing SMSF cash / XXX investments to provide for a deposit of $XXX on the investment purchase. We then recommend that you borrow the remaining $YYY which equates to XX% of the investment value. Transaction costs for the loan and investment will be funded from your SMSF cash account.

Process:

6. Review your SMSF Trust Deed to ensure it allows for borrowing funds. 7. Review your investment strategy to ensure the investment holding is within the desired asset allocation for the Fund. 8. Calculate the amount required to borrow and engage a lending professional to provide finance. 9. Establish a Bare trust and corporate Trustee in consultation with a Solicitor for the ownership of the investment. Make sure the investment Title is in the Bare Trust name, rather than the SMSF. 10. Document Trustee meeting minutes for this process.

Cost Schedule:

Property Value

Deposit

Stamp Duty

Legal costs (inc. BARE trust/trustee)

Loan fees

Advice fees

Accounting fees

Total upfront fees

$XXX $XXX $XXX $XXX $XXX $XXX $XXX

$XXX

Source from SMSF cash/ LRBA SMSF cash SMSF cash SMSF cash SMSF cash SMSF cash SMSF cash

Benefits:

 You can purchase XXX investment to hold within your SMSF. Without the loan, you would not have enough money in super to make this purchase.  [Commercial property] You can own your business premises, giving you further control over the fixed operating costs of your business.  Recourse is limited to the investment the loan relates to; other SMSF assets are protected.

 Gearing can magnify returns by allowing you increased exposure to growth markets such as the share market. This may increase your benefits at retirement.

Points to Consider:

 The investment must meet the ‘sole purpose test’ which is to provide retirement benefits for the SMSF members.  The investment must be a ‘single acquirable asset’ which normally means, for example, one property title not two.  A Security Trust is essentially a bare trust arrangement established specifically for the purposes of one entity holding an Asset on trust for another entity. Under such an arrangement, legal title to the Asset is acquired by the Security Trustee, while the SMSF Trustee generally obtains an absolute beneficial interest in the Asset.  The investment must be owned by the BARE Trust not the SMSF to avoid breaches relating to payment of benefits.  The investment purchase must be at arm’s length and not from a related party.  Where a loan is provided by a financial institution to the SMSF Trustee, the financial institution may require the Security Trustee to be a company. In addition, some financial institutions will also require that the SMSF Trustee also be a company (and not individuals). It is important to determine the requirements of the lender in all circumstances.  You must review your SMSF Trust Deed to ensure that this significant investment asset allocation is within the Investment Strategy guidelines.  There are limitations as to the type of investment that you can purchase. Please confirm that it complies prior to purchasing property.  Lending for LRBA purposes within super is restrictive and more expensive than regular investment lending. You need at least a 30% deposit depending on the lender.  You can borrow the money from a related party that is not a bank as long as the terms of the loan are commercial.  LRBA loans must be repaid on a principal and interest basis making the repayments higher than a traditional interest-only investment loan.  The limited recourse structure means that the borrower can only use the investment as security for the loan.  As investment is exposed to market conditions, the value can rise and fall.  Gearing can also magnify losses due to the increased exposure to markets.  If the Funds current cash flow of contributions and earnings is not adequate to meet the loan repayments, you may need to make additional contributions.  This strategy will / will not result in a credit to your Transfer Balance cap for retirement. This will / will not impact the benefit you are able to transfer to the tax-free pension phase in retirement.

86. Transfer business real property to your SMSF

We recommend that you transfer your business real property into your SMSF. This will be in lieu of a cash contribution to increase your retirement savings. We recommend that you contribute $XXX as a non-concessional contribution and $XXX as a concessional contribution.

Benefits:

 Your business can lease the property from your SMSF at commercial rental rates.  Commercial property has traditionally provided strong rental income returns.  Any rental income or realised capital gains will be taxed at the concessional superannuation tax rates (currently 15%).  A business property transfer allows a member to significantly increase their retirement savings by contributing their business to their SMSF with no need to sell the property.  Assets held within an SMSF are generally protected from creditors in the case of bankruptcy.  [Property bias] This property is in line with your preference to hold property as the growth portion of your portfolio rather than shares.

Points to Consider:

 This purchase must be at arm’s length and at market value. You should seek an independent valuation to determine the market value of the property.  The property should be let at commercial rates.  Transferring an active asset such as business real property does not automatically mean you can use the small business lifetime CGT cap and therefore, normal contributions limits will apply. You should seek specialist tax advice or even a tax ruling from the ATO, to determine which caps apply. This will avoid you exceeding the cap and paying tax on the excess.  Capital gains tax may be payable when the property is transferred to the SMSF.

 You must review your SMSF Trust Deed to ensure that this significant property asset allocation is within the

Investment Strategy guidelines.  Borrowing against a property within super has restrictive rules which must be adhered to. Please seek further advice before borrowing within your SMSF.  Transferring and holding business real property in an SMSF may incur several costs, duties and taxes, including:  legal fees,  stamp duty, goods and services tax and land tax,  strata levies, council rates and property maintenance fees.  These costs are estimated to be $XXX upfront and $XXX each year thereafter and should be considered before deciding to hold this property in your SMSF.  Capital Gains Tax - Small business owners have potentially one, or a combination of four, concessions available to reduce any capital gain upon the sale of active assets of a business. We recommend you seek professional tax advice before transferring your business property to super.

87. Establish a Self-Managed Super Fund

We recommend you establish a Self-Managed Super Fund (SMSF) and rollover funds from your existing Superannuation for a total of $XXX. We recommend that you leave $XXX in YYY Super Fund to continue the cost-effective insurance cover you have in place within the Fund. These funds will be invested into a diverse portfolio of managed funds / shares / exchangetraded funds in line with your Investment Risk Profile. [Individual Trustees] We recommend that each of you be appointed as individual Trustees and members of the Fund. [Corporate Trustee] We recommend that you set up a Corporate Trustee by establishing a company and appointing each of you as Directors of the Company. [Allow borrowing] This will allow you to borrow to invest in property now or in the future. Future Employer (SG) as well as any other contributions should be directed to the SMSF. We recommend a centralised cash hub to manage the day-to-day cash flow of the SMSF.

Benefits:

 As Trustees of your own Fund, you will have greater control over the selection and management of investments.  You will be able to hold a broader range of investments including direct property.  You have the option to be more involved in the ongoing management of the Fund.  [Admin service] We recommend <Admin service Provider> to assist you in administration and preparation of annual returns and audits. Full service is approximately $XXX p.a.  You can both / all be members of the one fund and may introduce other family as members also.  Having your own SMSF can be tax-effective as you can manage individual buys and sells to maximise tax outcomes whilst also investing in tax-effective investments such as shares with franked dividend income.  A family SMSF can assist with estate planning for the future.

Points to Consider:

 The legal and other costs to establish your SMSF will be $XXX and the ongoing fees are estimated to be an additional $XXX per annum.  As Trustees of the SMSF, there are numerous roles and responsibilities that you assume. You cannot delegate these duties to professionals, you will be ultimately responsible for the running of the Fund in compliance with the Trust Deed and ATO requirements.  All the directors of the fund must meet the eligibility requirements and register for a Director ID with Australian Business Registry Services.  When you register the fund with the ATO, you must provide the tax file number (TFN) for each director of the fund to the ATO.  If you do not meet your Trustee obligations and your SMSF is deemed non-complying, you will lose the super concessional tax rate of 15% and 45% will apply.  SMSFs are limited to 6 members. Some State trust law prohibits more than 4 individual trustees and therefore a corporate trustee might be more appropriate where there are more than 4 members.  Due to the significant ongoing fixed costs for SMSFs (estimated to be $XXX p.a.), you need a significant balance of $300,000 or more to make it cost-effective.  You will not have access to the Superannuation Complaints Tribunal and Special Compensatory Schemes if you lose money due to theft or fraud.  Running SMSFs can be time consuming.

 As part of the Fund establishment, you need to provide an investment and insurance strategy that takes into consideration the needs and preferences of all Fund members. The investment strategy then provides the framework from within which you make the investment decisions of the Fund.  There will be transaction costs for the rollover of your accounts. This will include buy / sell, exit fees and/or brokerage. Please refer to the Fee Section of this SoA for further explanation.  You will need to consider all outcomes for your members such as funding retirement benefits, death and disability. You should also consider what would occur if you need to wind up the SMSF. Thinking in advance of these implications can save you money in the long term.  [Insurance lost] You will lose your existing insurance cover with XXX Super Fund of $XXX Life / $XXX TPD / $XXX

Income Protection. We have made insurance recommendations for the replacement of this cover in this SoA. Do not cancel insurance until new cover has been accepted. OR You have adequate cover already in place (within the SMSF).  SMSFs are regulated by the ATO. For further information on your role and responsibilities, please refer to their website. A number of guides are provided and include: o Thinking about Self-Managed Super o Setting up a Self-Managed Super Fund o Running a Self-Managed Super Fund o Paying benefits from a Self-Managed Super Fund o Winding up a Self-Managed Super Fund.

88. Review your Self-Managed Super Fund Trust Deed and Investment / Insurance Strategy

In light of the recommendations made in this SoA, we recommend that you review your Self-Managed Super Fund (SMSF) Trust Deed as well as the associated Investment and Insurance Strategy.

Benefits:

 This will meet your Trustee obligation to regularly review the Investment and Insurance Strategy of the SMSF.  Investment recommendations within this SoA will be aligned to the SMSF Investment Strategy and allowable under the Trust Deed.  [Insurance] The members of the Fund have insurance in place in the event of death, illness or injury.

Points to Consider:

 The trust deed can be amended however the trustee must follow the guidelines for amending the deed as set out in the original trust deed of the fund. Further to this, amendments to the trust deed cannot reduce a member's entitlements unless it is approved with the written consent of the members or the regulator (which in the case of SMSFs is the ATO).  The governing rules of a superannuation fund are deemed to include certain covenants which cannot be avoided or modified. These covenants (contained in section 52 of the SIS Act) are in addition to any obligations which general trust law may impose on the trustees.  You need to make sure the Trust Deed allows these recommendations, and the Investment and Insurance Strategy are up to date. Breaches of the Trust and Trustee obligations can mean losing the concessional tax treatment of your super.  Trustee meeting minutes need to be documented to evidence this review.  As Trustees, you need to make sure the investments within the SMSF are in line with the Investment Strategy and that any changes required are made in a timely manner.  [Insurance] You are required to review the Insurance Strategy regularly to ensure that you have considered each members’ insurance needs.  [Update Trust deed] You will need to seek legal advice to update the Trust Deed.  The ATO has provided some guidance on key considerations in reviewing the investment strategy:  Investing in a way to maximise member returns taking into account the risk associated with the investment  Diversification and the benefits of investing across a number of asset classes (for example, shares, property and fixed deposit) in a long-term investment strategy  The ability of your fund to pay benefits as members retire and pay other costs incurred by your fund  Whether to hold insurance cover for one or more members of your SMSF  The circumstances of members (for example, age, income level, employment pattern and retirement needs).

89. Consolidate Super into your Self-Managed Super fund

We recommend that you consolidate your existing XXX Super Fund/s into your Self-Managed Super Fund (SMSF). We recommend that you leave $XXX in YYY Super Fund to continue the cost-effective insurance cover you have in place within the Fund. These funds will be invested into a diverse portfolio of managed funds / shares / exchange-traded funds in line with your SMSF Investment Strategy.

Benefits:

 Having all your super in one place will reduce the ongoing administrative burden of tracking and managing multiple accounts.  As many fees for your SMSF are fixed, it is more cost-effective to direct all super into this account.  You will have greater control over the selection and management of investments.  You will be able to hold a broader range of investments including direct property.  You have the flexibility to manage individual buys and sells to maximise tax outcomes whilst also investing in taxeffective investments such as shares with franked dividend income.

Points to Consider:

 As Trustees of the SMSF, there are numerous roles and responsibilities that you assume. You cannot delegate these duties to professionals, you will be ultimately responsible for the running of the Fund in compliance with the Trust Deed and ATO requirements.  If you do not meet your obligations and your SMSF is deemed non-complying, you will lose the concessional tax rate of 15% and 45% will apply.  Due to the significant ongoing fixed costs for SMSFs (estimated to be $XXX p.a.), you need a significant balance of $300,000 or more to make it cost-effective.  You will not have access to the Superannuation Complaints Tribunal and Special Compensatory Schemes if you lose money due to theft or fraud.  Running SMSFs can be time consuming.  There will be transaction costs for the rollover of your accounts. This will include buy / sell, exit fees and/or brokerage. Please refer to the Fees Section of this SoA.  [Lose insurance] You will lose your existing insurance cover with XXX Super Fund of $XXX Life / $XXX TPD / $XXX Income Protection. We have made insurance recommendations for the replacement of this cover in this SoA. Do not cancel insurance until new cover has been accepted. OR You have adequate cover already in place (within the SMSF).  There is no guarantee that the investment in the Fund selected for consolidation will outperform your previous Funds.

90. Wind-Up (Close) your Self-Managed Super Fund

We recommend that you close (wind-up) your Self-Managed Super Fund (SMSF) and rollover the proceeds to XXX

Superannuation Fund. We also recommend that you close the Corporate Trustee Company once the SMSF is wound up and final documentation lodged. [Based on cost] Your SMSF is no longer cost-effective and therefore you wish to consider lower-cost options. [Direct property sold] You have sold your investment / commercial property and finalised your LRBA and as you do not wish to make any further direct property investments, you no longer have a need for the

SMSF. [Relationship Breakdown] You need to wind up your SMSF as XXX has left the Fund and it is no longer viable with a reduced balance. [Retirement] You would like to reduce the time spent on your super in preparation for your retirement. Simplifying the ongoing management and your responsibilities is important at this time.

Benefits:

 [Trustee obligations] You will no longer have to manage your own Fund. You have found this an onerous task and wish to simplify your responsibilities in the future.  [Reduced Cost] We estimate that the management costs for your super will reduce by $XXX in the first year.  You will spend less time managing your super in your retirement.  [Property] Selling your property has enabled the closure of your SMSF.  You will get access to professional investment managers to assist in the investment of your retirement savings.

Points to Consider:

 The wind up of your SMSF can be costly and takes time. You need to ensure that you address the wind-up instructions in the Trust Deed of the Fund.  Your Trustee responsibilities do not cease until the final Return has been lodged and tax paid.

 In some cases, you can pay benefits to members when you wind up your SMSF. In other cases, the members won’t meet a 'condition of release' to access their benefits, so you will need to roll the benefits over to another complying super fund.  There may be capital gains tax (CGT) on the disposal of SMSF assets.  The ATO outlines key components of the wind-up process as follows: o Pay out or rollover all super (leaving a sufficient amount to pay final tax or expenses if required) o Appoint an SMSF auditor to complete the final audit o Complete and lodge the final SMSF annual return (including wind-up details) o Pay any outstanding tax o After all expected liabilities have been settled and requested refunds are received, close the fund’s bank account. o Once a fund is wound up, it cannot be reactivated.

91. Make Super Contributions using the First Home Super Saver Scheme (FHSSS)

We recommend that you make a concessional / non-concessional contribution to your XXX Super Fund to save for a home deposit. Effective from 1 July 2017, you use your contributions made to super to put towards your first home deposit.

Benefits:

 You can use the concessionally-taxed environment of super to save for a home deposit.  [NCC] Non-concessional contributions can be withdrawn tax-free.  [CC] Concessional contributions will be taxed on withdrawal at your marginal tax rate however you will receive a tax offset of 30% on this tax.  Not having access to these funds can help you be more disciplined in leaving it for the intended purpose of buying a house.

Points to Consider:

 You must not have purchased another home before in Australia or claimed the FHSSS previously to be eligible.  You can nominate $15,000 of your contributions in any one year to go towards your deposit and a maximum of $50,000 plus associated earnings across all years.  You must withdraw your FHSSS prior to property purchase to avoid additional tax.  Once withdrawn, you must purchase a home within 12 months and live or intend to live in it, for 12 months.  It can take up to 25 business days for the withdrawal to be processed.  You must notify the ATO within 28 days of signing a Contract to purchase a home or alternatively you can recontribute the FHSSS amount and notify the ATO within 12 months.

92. Review your Binding Death Nomination

We recommend that you review your binding death benefit nomination for your superannuation. This nomination will be lapsing / non-lapsing.

Benefits:

 [Binding] A binding nomination, for an allowable dependant or your Estate, instructs the Trustee of the Fund to pay any proceeds according to your wishes.  [Non-lapsing] As long as your nomination remains current, a non-lapsing nomination means that you don’t need to update it every three years as it does not expire.  The proceeds of your retirement savings will be distributed according to your wishes on death.  Careful planning helps to manage tax implications of proceeds distributed.  Nominating your intentions can reduce disputes and costly legal intervention.  You can change your nominations at any time.  Providing instruction to the Trustee of your Fund can mean your beneficiaries will receive payment faster.

Points to Consider:

 [Lapsing] Your nomination will need to be updated every three years to remain valid.  [Non-Lapsing] You will need to update your nomination if your circumstances or preferences change.  You must nominate a dependent (as defined by superannuation law) or your Legal Personal Representative for the nomination to be valid.

 [Non-binding] Non-Binding nominations mean the Trustee of your Fund has the discretion to pay to other dependents if they deem it appropriate.  The taxable component of your super may be subject to tax if paid to a non-dependant.

93. Make a Binding Death Nomination

We recommend that you make a binding death benefit nomination for your superannuation. This nomination will be lapsing / non-lapsing.

Benefits:

 [Binding] A binding nomination, for an allowable dependant or your Estate, instructs the Trustee of the Fund to pay any proceeds according to your wishes.  [Non-lapsing] As long as your nomination remains current, a non-lapsing nomination means that you don’t need to update it every three years as it does not expire.  The proceeds of your retirement savings will be distributed according to your wishes on death.  Careful planning helps to manage tax implications of proceeds distributed.  Nominating your intentions can reduce disputes and costly legal intervention.  You can change your nominations at any time.  Providing instruction to the Trustee of your Fund can mean your beneficiaries will receive payment faster.

Points to Consider:

 [Lapsing] Your nomination will need to be updated every three years to remain valid.  [Non-Lapsing] You will need to update your nomination if your circumstances or preferences change.  You must nominate a dependent (as defined by superannuation law) or your Legal Personal Representative for the nomination to be valid.  [Non-binding] Non-Binding nominations mean the Trustee of your Fund has the discretion to pay to other dependents if they deem it appropriate.  The taxable component of your super may be subject to tax if paid to a non-dependant.

94. Make Salary Sacrifice Superannuation Contributions

We recommend that you contact your Employer to arrange for salary sacrifice contributions to be deducted from your salary / wage. We recommend an amount of $XXX each fortnight / month ($YYY p.a.). These contributions should be made to your XXX Fund / our recommended Super Fund.

Benefits:

 Adding more contributions to super will increase your savings for retirement.  These contributions will be made pre-tax and subject to a lower rate of tax in super of 15 / 30%. We estimate that you will pay $XXX less tax in the first year.  Your superannuation balance, after contributions tax, will increase by $XXX in the first year.  [Retirement] These contributions to super will help you achieve your retirement goal of <Retirement goal>.  We estimate your super balance to be $X at age XX.  Your contributions will be invested in line with your investment risk profile.  Your Employer deducting these contributions from your salary / wage makes it easy to manage.

Points to Consider:

 Not all Employers offer this service, you need to check with them to make sure they can facilitate this arrangement.  Your cash available to spend will reduce by $XXX in the first year.  [Sufficient cash flow] A review of your lifestyle expenses has confirmed that you can afford this decrease in income.  [Under 75 super] As you are under age 75 you are eligible to make salary sacrifice contributions. Please refer to the Super Flyer for criteria.  A concessional contribution cap of $27,500 p.a. applies.  [Balance less than $500,000] As your balance is less than $500,000, you can carry forward unused concessional contributions for up to 5 years. This means that unused portions of your cap can be used in those future years.  Exceeding the concessional cap will result in additional tax payable.  You will not be able to access this money until you meet a condition of release such as retirement.  Salary / wage increases may result in exceeding the cap. Please contact our office so that we can amend the contribution to be deducted.  The Transfer Balance Cap for income streams means that only $1,700,000 can be transferred at retirement. The remaining balance will need to stay in super.  Some Employers recalculate Employer contributions and other benefits on the net amount of salary / wages after your salary sacrifice contributions. Please confirm the arrangement in writing with your Employer prior to commencing this strategy.

95. Make Changes to your Salary Sacrifice Contributions

We recommend that you contact your Employer to amend your salary sacrifice contributions to be deducted from your salary / wage. We recommend a revised amount of $XXX each fortnight / month ($YYY p.a.). These contributions should be made to your XXX Fund / our recommended Super Fund.

Benefits:

 [Increase SS] The revised contribution will take advantage of your cash flow surplus and grow your retirement savings further.



You will have more funds available to meet your lifestyle expenses.  As these contributions will be made pre-tax and subject to a lower rate of tax in super of 15/30%, you will pay $XXX less tax in the first year.  [Increase SS] Your superannuation balance, after contributions tax, will increase by $XXX in the first year.  Making contributions to super will help you achieve your retirement goal of <Retirement goal>.

Points to Consider:

 [Increase SS] Your net cash flow will be reduced by $XXX in the first year.  [Sufficient cash flow] A review of your lifestyle expenses has confirmed that you can afford this reduction in income.  A concessional cap of $27,500 p.a. applies.  [Balance less than $500,000] As your balance is less than $500,000, you can carry forward unused concessional contributions for up to 5 years. This means that unused portions of your cap can be used in those future years.  Exceeding the concessional cap will result in additional tax payable.

 You will not be able to access this money until you meet a condition of release such as retirement.  Salary / wage increases may result in exceeding the cap. Please contact our office so that we can amend the contribution to be deducted.  The Transfer Balance cap for income streams means that only $1,700,000 can be transferred at retirement. The remaining balance will need to stay in super.  Some Employers recalculate Employer contributions and other benefits on the net amount of salary / wages after your salary sacrifice contributions. Please confirm the arrangement in writing with your Employer prior to commencing this strategy.

96. Make Concessional Superannuation Contributions

We recommend that you make superannuation contributions of $XXX each fortnight / month ($YYY p.a.). These contributions should be made to your XXX Fund / our recommended Super Fund.

Benefits:

 As these contributions will be made pre-tax and subject to a lower rate of tax in super of 15/30%, we estimate that you will pay $XXX less tax in the first year.  Your superannuation balance, after contributions tax, will increase by $XXX in the first year.  [Retirement goal] Making contributions to super will help you achieve your retirement goal of <Retirement goal>.

Points to Consider:

 As you intend to claim a tax deduction for these contributions, you need to lodge a Notice of Intent to Claim a Tax Deduction form with your Super Fund. Strict criteria apply to the submission of this form and the timeframe requirements. Make sure you receive written confirmation from your Super Fund that the form has been received and is valid. Otherwise, you may not be able to claim a tax deduction.  Your net cash flow will be reduced by $XXX in the first year. A review of your lifestyle expenses has confirmed that you can afford this reduction in income.  You will not be able to access this money until you meet a condition of release such as retirement.  [Under 75super] As you are under age 75 you are eligible to make concessional contributions at any time.  A concessional cap of $27,500 p.a. applies.  [Balance less than $500,000] As your balance is less than $500,000, you can carry forward unused concessional contributions for up to 5 years. This means that unused portions of your cap can be used in those future years.  Exceeding the concessional cap will result in additional tax payable.  The Transfer Balance Cap for income streams means that only $1,700,000 can be transferred to an income stream at retirement. The remaining balance will need to stay in super.

97. Consolidate your Super Funds

We recommend you consolidate your super funds into <Recommended Super Fund> Fund. [Contributions] Future SG and other contributions should also be directed to this Fund. [Death benefit nomination] We recommend you make a nonlapsing, binding death benefit nomination so that your Funds will be paid to your chosen dependents upon death.

Benefits:

 Your super will be easier to manage with just one account. This will help you to keep track of, and monitor, your retirement savings for the future.  [Reduced Fees] The cost of managing your retirement savings will reduce by $XXX in the first year. Our estimates show this could equate to $XXX savings by your planned retirement age of <Retirement age>.  Consolidating into one Fund will help you prepare for retirement strategies such as income streams.  Your funds will be invested in line with your investment risk profile.

Points to Consider:

 There is no guarantee that the investments in the Fund selected will outperform your previous Fund investments.  [Insurance lapse] The insurance of $XXX Life, $XXX TPD and / or $XXX Income Protection in your XXX Super Fund will lapse upon rollover. We have reviewed your cover and you are comfortable with the level of cover provided through <Recommended Super Fund> Fund.  There will be buy / sell costs payable on the rollover of Funds. A full analysis of replacement costs and comparison of Fund costs is provided later in this document.  [Employer contributions] You will need to notify your Employer of the new Fund details to move contributions to the <Recommended Super Fund> Fund.

 [Personal Contributions] Your personal contributions should be redirected to the <Recommended Super Fund>

Fund.  The Transfer Balance cap for income streams means that only $1,700,000 can be transferred from super at retirement. The remaining balance will need to stay in super.  [Untaxed Component] Your existing Fund has an untaxed component which will be taxed at 15%. We estimate this tax payment to be $XX and it will be deducted from your fund prior to rollover.  [Exceed untaxed Plan Cap] As your untaxed portion is greater than the Untaxed Plan Cap, the amount exceeding this cap will be subject to a higher rate of tax at 45% plus Medicare. We estimate this to be $XX in addition to the standard 15% rate of tax estimate above.

98. Start a New Super Fund

We recommend that you establish a Superannuation Fund. This will allow you to receive Employer contributions to the Fund / start your retirement savings / commence a concessionally taxed wealth creation strategy / pay for your insurance via superannuation.

Benefits:

 The Fund will be able to receive Employer (SG) contributions.  You can make personal contributions to the Fund.  Your insurance premiums can be paid via the Fund.  The investments will be in line with your investment risk profile.

Points to Consider:

 You will not be able to access this money until you meet a condition of release such as retirement.  [Under 75 super] As you are under age 75 you are eligible to contribute this money to super. Please refer to the Super Flyer for criteria.  [over 75] Only mandated employer contributions or downsizer contributions can be made to your Super plan.  [NCC] The non-concessional contribution cap will apply to after-tax personal contributions. This is currently $110,000 in any one year and $330,000 utilising the 3-year bring forward rule.  [CC] A concessional cap of $27,500 p.a. will apply to pre-tax contributions.  [Balance less than $500,000] As your balance is less than $500,000, you can carry forward unused concessional contributions for up to 5 years. This means that unused portions of your cap can be used in those future years.  [CC] Exceeding the concessional cap will result in additional tax payable.  The Transfer Balance cap for income streams means that only $1,700,000 can be transferred at retirement. The remaining balance will need to stay in super.

99. Retain your Super Fund/s

We recommend that you maintain your XXX Fund/s. It will continue to be invested in line with your investment risk profile.

Benefits:

 Your existing Fund continues to meet your retirement objectives.  Your existing Fund is cost-effective and has all the features that you require.  By retaining your existing Fund, you will not have to pay any transaction costs to rollover to a new Fund.  No capital gains will be crystallised.  You will be able to maintain your insurance which is cost-effective and appropriate for your needs.

Points to Consider:

 [Insurance] Your insurance cover will reduce with age. You may be underinsured if the cover reduces below your need for insurance.  Regular review of your Fund should be made to ensure it continues to meet your needs.

100. Review your Super Fund

We have undertaken a review of your Super Fund/s and recommend no change to your current arrangements / you make the following changes:  [Beneficiary] Make a selection to appoint a non-lapsing binding death benefit nomination.  [Rebalance] Rebalance your investment portfolio in line with your investment risk profile.  [Insurance] Undertake a review of your insurance cover.  Other  Other

Benefits:

 Your super fund will reflect your current objectives for retirement.  [No change] Your Super Fund is invested according to your investment risk profile and has all the features you need.  [Profile Change] Your Super Fund will be more aligned to your investment risk profile.  [Insurance] You may apply for additional cover to help meet your insurance needs in the event of death, disability and illness.

Points to Consider:

 [Change] There will be transaction costs in the sell down and purchase of investments.  [Portfolio Change] There is no guarantee the recommended investments will outperform your existing investments. Returns are dependent on market conditions and Investment Manager expertise.  [Growth] The portfolio will have a higher allocation to growth investments which means your super will be subject to greater volatility.  [Cash / FI] The portfolio will have a high allocation to defensive assets such as cash and fixed interest which means there will be less opportunity for capital growth and higher returns over the long term.  [Insurance] Additional insurance means that you will pay more for this cover. These premiums will reduce the balance of your super account and the funds available to you in retirement.

101. Rollover your Super Fund/s

We recommend that you rollover your Super Fund/s to the <Recommended Super Fund> Super Fund. The total value of $XXX will be transferred and invested in line with your investment risk profile.

Benefits:

 [Pre-retirement] Rolling over your super to <Recommended Super Fund>Fund will prepare your Funds for pension phase.  Overall fees will reduce to $XXX in the first year. A full analysis of replacement costs and comparison of Fund costs is provided later in this document.

Points to Consider:

 There is no guarantee the recommended Fund will outperform your existing Fund. Returns are dependent on market conditions.  There will be buy / sell costs payable on the rollover of Funds. These are estimated to be $XX.  [Untaxed Component] Your existing Fund has an untaxed component which, on rollover, will be taxed at 15%. The net amount will be transferred to XXX Fund.  The Transfer Balance cap for income streams means that only $1,700,000 can be transferred at retirement. The remaining balance will need to stay in super.

102. Rebalance your Super Fund Investment Portfolio

We recommend that you rebalance your XXXX Super Fund investment portfolio in line with your investment risk profile. We recommend that you sell down your holding of <Name of Funds / shares> and purchase <Name of Funds / Shares>. The difference in the buy and sell amounts will be sourced from / directed to your XXXX cash account. These changes to your portfolio take into consideration market research on the expected performance of these funds as well as the alignment to your investment risk profile.

Benefits:

 Your portfolio will be aligned to your investment risk profile.

 The recommended Funds / stocks are considered appropriate investments as outlined in our market research.  Making changes at each review allows you to take advantage of new market opportunities which may improve your returns and increase your wealth.

Points to Consider:

 <Insert reason for sell down of funds / stocks>  <Insert reason for purchase of funds / stocks>  There will be transactions costs in selling down and purchasing investments.  If you do not implement these recommendations, you run the risk of having your portfolio not aligned to your risk profile / having underperforming investments that may impact your retirement savings goals.  [Capital Gains] Selling down investments will trigger capital gains. We recommend that you seek tax advice to confirm the tax liability of the Fund; we estimate the capital gains tax to be $XXX. This will be paid within the Fund and is not a personal liability to you.  Whilst extensive research has been conducted, there is no guarantee that the new investments will outperform the old ones. [Ongoing service] We will review the allocation at your agreed ongoing review to adjust investments as required.

103. Withdraw your Superannuation

We recommend that you withdraw part of your superannuation benefits. This will give you access to approximately $XXX so that you can pay down debt / pay for your holiday / buy your XXX / Other. The proceeds from your super should be directed to your XXX cash account.

Benefits:

 You will have the required funds for XXX.  As you have now met a condition of release by retiring, you have access to your super.  [No tax withdrawal] As you are over 60 / have 100% tax-free super savings, you will not pay any tax on the withdrawal of your super money.

Points to Consider:

 [Partial] We have recommended that you redeem XXXX investment/s within your super portfolio as <insert reason for fund selection>.  [Tax on withdrawal – taxable component] As you are under 60, you will pay tax on the Taxable component of your super. We estimate the tax to be deducted from your withdrawal to be $XXX.  [Untaxed element] As you have an untaxed component to your super, you will pay tax on this amount. We estimate the tax to be deducted from your withdrawal to be $XXX.  [Untaxed element] You will need to include the untaxed amount of your withdrawal in your Tax Return. The Fund will provide you with a payment summary with the amount of untaxed element and the tax paid to help you complete this.  [Capital Gains] Selling down investments will trigger capital gains. We recommend that you seek tax advice to confirm the tax liability of the Fund; we estimate the capital gains tax to be $XXX. This will be paid within the Fund and is not a personal liability to include in your Tax Return.  [Transaction costs] There will be transactions costs in selling down and purchasing investments.  You will have less invested funds to meet your retirement savings goals.

104. Transfer your asset/s In-Specie to your Super Fund

We recommend that you transfer XXX into your YYY Super Fund. Transferring in-specie allows you to keep the asset and changeover the ownership to within super. This will be treated as a non-concessional contribution with an estimated value of $XXX.

Benefits:

 Not selling and re-purchasing avoids time out of the market.  There will be no buy / sell costs.  Adding XXX to your super will increase your retirement savings.  XXX will now be subject to concessional income tax at 15% and reduced capital gains tax (discount 1/3).  Some asset protection is provided against theft and fraud through Special Compensatory Schemes within super.

Points to Consider:

 Your asset transfer will be treated as a non-concessional contribution to super and normal rules apply.  The current non-concessional contribution cap is $110,000, or $330,000 by using the bring-forward rule. The latter is essentially making three years contributions in the one year.  Any assets or money within super is preserved until you meet a condition of release such as retirement. This means you won’t be able to access or reclaim your asset until then.  The beneficial ownership of your asset will change upon transfer to your super. This will trigger stamp duty and capital gains tax. You should seek specialist tax advice to confirm what this liability is.  [SMSF] You need to ensure the addition of this investment fits within the Investment Strategy of your SMSF. Any changes to your Investment Strategy should be documented in meeting minutes.  [SMSF] There are rules that govern the purchase of assets from related parties within a SMSF. Please ensure that the transaction complies prior to completion.

105. Make a Non-Concessional Contribution and access Government Co-Contribution

We recommend that you make an after-tax, non-concessional contribution of $XXX to your YYY Super Fund / the recommended Super Fund. This will be funded from your XXX bank account / cash account / XXX investment. Based on your income of $YYY, we estimate that you will be entitled to a government co-contribution of $ZZZ.

Benefits:

 The government will contribute to your superannuation to promote super savings for low-income earners.  This will help you to grow your retirement savings for the future / to meet your retirement goal of XXX.  We estimate that with earnings, you will have $XXX more in your superannuation within the first year.  After-tax, non-concessional contributions form part of the tax-free component of your Fund. This will be paid to you tax-free if you should require early access. It will also be passed to non-dependent adult children tax-free in the event of your death, reducing the tax they pay.

Points to Consider:

 Any assets or money within super is preserved until you meet a condition of release such as retirement. This means you won’t be able to access or reclaim your contributions until then.  The current non-concessional contribution cap is $110,000, or $330,000 by using the bring-forward rule. The latter is essentially making three years contributions in the one year.  Government policy is subject to change and rates of co-contribution may change as a result.  The co-contribution will be calculated from your Tax Return at the end of the financial year. It will then be paid directly to your nominated Fund.  [Under 75 super] As you are under age 75 you are eligible to contribute this money to super. Please refer to the Super Flyer for criteria.

106. Cease your Transition to Retirement Income Stream <with salary sacrifice>

We recommend that you cease your transition to retirement income stream (transition to retirement income stream) by rolling $XXX from your <transition to retirement income stream> Pension to your <Name Super> Super Fund. We recommend that you continue / cease your salary sacrifice of $XXX per fortnight / month to your <Name Super> Super Fund.

Benefits:

 Your retirement savings will grow further by stopping your income withdrawal from the transition to retirement income stream account.  [Continue Salary sacrifice] Salary sacrifice contributions are tax effective as your marginal tax rate is XX% and superannuation is charged at a rate of 15 / 30%.  We estimate this strategy will give you a balance at retirement of $XXX. This will meet / will help to meet your retirement goal to <retirement goal>. Please refer to the financial projections at the end of this document for further explanation of these estimates.

Points to Consider:

 You will not be able to access this money until you meet a condition of release such as retirement.

 Recent changes to legislation relating to transition to retirement income streams mean earnings in the pension are no longer tax free. They are now taxed at the super tax rate of 15%. As a result, transition to retirement income stream s are less tax-effectively.  [Continue Salary Sacrifice] A concessional cap of $27,500 p.a. applies to concessional contributions such as salary sacrifice. [Balance less than $500,000] As your balance is less than $500,000, you can carry forward unused concessional contributions for up to 5 years.  [Continue Salary Sacrifice] Exceeding the concessional cap will result in additional tax payable.  [Continue Salary Sacrifice] Salary / wage increases may result in exceeding the cap. Please contact our office so that we can amend the contribution to be deducted.  The Transfer Balance cap for income streams means that only $1,700,000 can be transferred at retirement. The remaining balance will need to stay in super.

107. Split your Contributions with Spouse name

We recommend that you split your contributions of $XXX from last financial year to <spouse name>’s <spouse Fund name> Super Fund. [Ongoing] We recommend that you do this each year until retirement. [Split for withdrawal/rollover] We recommend that you split your contributions of $XXX from this financial year to <spouse name>’s <spouse Fund name> Super Fund.

Benefits:

 By splitting your superannuation contributions across two accounts, you can manage your transfer balance cap in the lead up to retirement. This may reduce tax payable in retirement.  Making contributions to your spouse’s super will help them save for retirement.  [Spouse older] As your spouse is older than you, moving money into their super may give you earlier access at lower tax rates.  [Spouse younger] As your spouse is younger, their superannuation is not yet assessable for means testing of the Centrelink Age Pension. This may result in a higher pension payment for you.

Points to Consider:

 Concessional contributions will be subject to contributions tax at 15 / 30% upon receipt in your <Spouse name>’s super account.  As you intend to claim a tax deduction for these contributions, you need to lodge a Notice of Intent to Claim a Tax Deduction form prior to splitting the contribution. Strict criteria apply to the submission of this form and the timeframe requirements. Make sure you receive written confirmation from your Super Fund that the form has been received and is valid. Otherwise, you may not be able to claim a tax deduction.  Only Employer, salary sacrifice and personal deductible contributions can be split with your spouse.  Your spouse must be under 65 and not retired to accept these contributions.  [Withdrawal / rollover split] Your <Client Fund name> Fund should be notified prior to the withdrawal / rollover being processed.  Not all Funds accept contribution splitting. You need to make sure this is allowed in your Fund. There may be costs associated with processing these transactions.  You are only allowed one split request per annum. You must submit the Form to apply by 30 June in the year following the contribution. Unless you are withdrawing or rolling over, then you need to notify the Fund at the time of withdrawal or rollover.  You will not be able to access this money until you meet a condition of release such as retirement.  [Under 75super] As you are under age 75 you are eligible to contribute to Super. Please refer to the Super Flyer for criteria.  A concessional cap applies to contribution splitting. Please refer to the Superannuation Strategy Flyer for current limits.  [Balance less than $500,000] As your balance is less than $500,000, you can carry forward unused concessional contributions for up to 5 years.  Exceeding the concessional cap will result in additional tax payable.  The Transfer Balance cap for income streams means that only $1,700,000 can be transferred at retirement. The remaining balance will need to stay in super.

108. Make a Non-Concessional Contribution

We recommend that you make an after-tax, non-concessional contribution of $XXX each / this financial year, to your YYY Super Fund / the recommended Super Fund. This will be funded from your XXX bank account / cash account / XXX investment.

Benefits:

 This will help you to grow your retirement savings for the future / to meet your retirement goal of XXX.  We estimate that with earnings, you will have $XXX more in your superannuation within the first year.  Your contributions will be invested in line with your investment risk profile.  After-tax, non-concessional contributions form part of the tax-free component of your Fund. This will be paid to you tax-free upon meeting a condition of release.  Benefits will be paid tax-free to beneficiaries such as your adult children, in the event of your death.  [Pension pre-60] These contributions will reduce tax payable on pension payments you receive prior to age 60.

Points to Consider:

 You will not be able to access this money until you meet a condition of release such as retirement.  The current non-concessional contribution cap is $110,000 per annum. Contributions that exceed the cap may be subject to additional tax. Please contact our office before making additional contributions.  You can trigger the bring-forward rule which allows you to make three years’ worth of contributions ($330,000) in one year.  [Trigger bring-forward] This recommendation will trigger the bring-forward rule. You only have an additional $XXX that you can contribute before <enter date trigger period ends>.  You will have less funds available in your XXX bank account / cash account / XXX investment.  [Under 75 super] As you are under age 75 you are eligible to contribute to Super. Please refer to the Super Flyer for criteria.  Superannuation in an accumulation account is subject to market performance. The value of your super savings will rise and fall with the markets you are invested in.  If your balance exceeds the Transfer Balance Cap of $1.7 million in the future, you will not be able to make any further non-concessional contributions to super.

109. Make a Spouse contribution to Superannuation

We recommend that you make a spouse contribution of $XXX to your YYY Superannuation Fund. This will be funded from your XXX bank account / cash account / XXX investment. We estimate that you will receive a tax offset of $540 / $XXX for this contribution in your Tax Return.

Benefits:

 Spouse contributions are treated as non-concessional contributions for tax purposes and therefore attract tax –free status on withdrawal and when paid to beneficiaries upon death.  This will help you to grow your spouse’s retirement savings for the future / to meet their retirement goal of XXX.  We estimate that with earnings, your spouse will have $XXX more in their superannuation within the first year.

Points to Consider:

 You are unable to claim a tax deduction for spouse contributions. The contribution needs to be a nonconcessional, after-tax contribution.  Your spouse’s income must be below $40,000 to qualify for a partial tax offset and $37,000 to receive the maximum tax offset of $540 each year.  You will have less funds available in your XXX bank account / cash account / XXX investment.  Any assets or money within super is preserved until you meet a condition of release such as retirement. This means your spouse won’t be able to access or reclaim contributions until then.  The current non-concessional contribution cap is $110,000, or $330,000 by using the bring-forward rule. The latter is essentially making three years contributions in the one year.  You must both be Australian residents and living together at the time of the contribution.  For 2017–18 and later income years, your spouse cannot exceed their non-concessional contributions cap for the relevant year or have a total superannuation balance equal to or exceeding the transfer balance cap immediately before the start of the financial year in which the contribution was made (the general transfer balance cap for 2021-22 is $1.7 million).