Super Universe€¦ · Super is a powerful and tax-effective savings option. Super can sometimes...

1 QSuper | QInvest Presentation

Super What’s changing and what’s staying the same


Important Information

This information has been prepared for general purposes only without taking into account your objectives, financial

situation, or needs and should not be relied on as legal or taxation advice, nor does it take the place of such advice.

Any statements of law or proposals are based on our interpretation of the law or proposals as at the time of preparation.

You should consider the appropriateness of the information for your circumstances and read the product disclosure

statement (PDS) before deciding whether to acquire, or continue to hold, a product. You can obtain a PDS from our

website or by calling us on 1300 360 750.

This information is provided by QInvest Limited (ABN 35 063 511 580, AFSL and Australian Credit Licence number

238274). QInvest Limited is ultimately owned by the QSuper Board (ABN 32 125 059 006) as trustee for the QSuper

Fund (ABN 60 905 115 063), and is a separate legal entity responsible for the financial services and credit services it

provides. Advice fees apply. Unless otherwise stated, all products are issued by the QSuper Board as trustee for the

QSuper Fund.

Where the term ‘QSuper’ is used in this presentation, it represents the QSuper Board, the QSuper Fund and QSuper

Limited (ABN 50 125 248 286, AFSL 334546) unless expressly indicated otherwise.

Whilst all care is taken in the preparation of this material no warranty is given with respect to the information provided,

and accordingly no responsibility for errors or omissions, including responsibility to any person by reason of negligence

is accepted by QSuper, QInvest Limited or any of its representatives. The QSuper Board owns the copyright in this

information (or has a licence to use the copyright where it is owned by another party). You may reproduce this

information for personal, non-commercial use only. You may not distribute or transmit this information to any other

person or otherwise use this information without obtaining the QSuper Board’s prior written consent.

© QSuper Board of Trustees 2016. All rights reserved.


Super relationships

Federal

Government

QSuper

QLD

Government/

Employer

Member


Major changes to super (Federal Government sphere – when legislated)

• Most Federal Government Budget changes take effect from

2017/2018.

• Transitional arrangements will be in place until then.

• Lower contribution rates could make it harder to ‘catch up’

your super later in your career.

So here’s what you need to consider now:

• Your situation and how these changes could affect you.

• How you can get on track over a longer time

Many people will not be affected by any of the changes.

QSuper | QInvest Presentation


Money in concessional contributions

Salary sacrifice

Concessional contributions – 15% tax

From July 2017

• Limit from July 2017 – $25,000.

• Extra 15% tax if assessable income over $250,000.

From July 2018

• ‘Catch up’ unused concessional contributions for balances below $500,000 over rolling 5 years.

Employer 12.75% Deductible contribution

Bank

account

QSuper account

Gross

salary Employer


Money in non-concessional contributions

Post-tax

Bank

account

QSuper account

Gross

salary Employer

Non-concessional contributions

From July 2017

• Limit of $100,000 or 3 year bring forward $300,000 – $0 if balance over $1.6m.

• Rebate for spouse contribution income threshold increased to $37,000 ($540 for $3,000 contribution).

7 QSuper | QInvest Presentation QSuper | QInvest Presentation

Money in how things will work post 1 July 2017

Jason is 40, earns $100,000 per year, has an

Accumulation account balance of $100,000 and salary

sacrifices standard contribution of 5% of his annual

salary. Spouse Jill who is on maternity leave earns

$30,000 a year, and has $70,000 in her super.

Jason’s employer super contributions – $12,750

Jason’s salary sacrificed contributions – $5,000

Jason might consider:

• Salary sacrificing or making a lump sum

contribution of $7,250 and claiming a tax deduction.

• Making a spouse contribution to Jill.

When Jill returns to work:

• ‘Catch up’ provisions will apply from July 2018

(but effectively 2019).

We need to let you know that the examples in this presentation are provided for illustrative purposes only, shouldn’t

be relied on as personal, legal or taxation advice and doesn’t take the place of this type of advice either.


Bill is 55, earns $100,000 a year, has an

Accumulation account balance of $500,000,

salary sacrifices standard contribution of 5% of

his annual salary and gets an inheritance of

$500,000.

Bill’s total employer and salary sacrificed

super contributions – $17,750.

Bill might consider:

• Salary sacrificing and/or making lump sum

contributions of $7,250 per year and claiming

a tax deduction.

• Making non-concessional contributions –

$100,000 per year or ‘bringing forward’ three

years of contributions – $300,000.

Money in how things will work post 1 July 2017

We need to let you know that the examples in this presentation are provided for illustrative purposes only,

shouldn’t be relied on as personal, legal or taxation advice and doesn’t take the place of this type of advice either.


Employer

Gross salary

• Accumulation account – earnings taxed at 15%.

• Income account – Transition to Retirement earnings taxed change from 0% to

15%.

• Income account – retirement earnings taxed at 0% to $1.6m. Rollback the

rest to Accumulation account or cash out.

One-off transfer

Income

account Accumulation

account Bank

Income account from July 2017


Sharon retires at 65 with Accumulation account

balances of $250,000 and moves to an income

account.

Tax on investment earnings – 0%.

Tax on income drawdown – 0%.

Income accounts from July 2017

We need to let you know that the examples in this presentation are provided for illustrative purposes only,

shouldn’t be relied on as personal, legal or taxation advice and doesn’t take the place of this type of advice either.


Open fund

• Queensland Government has announced changes about who will be eligible to join QSuper.

• Expect that it will to be the open to all to apply to join (spouse can do this now)

• When and how to join will be disclosed in the new product disclosure statement with the application form detailing the new membership eligibility criteria

• To register interest in joining QSuper, details can be entered on our website and further information will be sent when available

Changes to Queensland Government

legislation (if/when legislated)


Changes to Queensland Government

legislation (if/when legislated) State Government employees

Choice of fund

• Public sector employees will have choice of fund for Accumulation account only.

• Contribution levels remain the same.

• Can choose to opt out – otherwise no action required.


About QSuper

We’re an award-winning fund – we just won SuperRatings Fund of the

Year and MySuper of the Year – both for the second year in a row!

We cater to our members

needs through Member

Online and MoneyMap.

Members can choose

how they want their super

invested through Self Invest.

We launched our industry

first Transfer Bonus.

We launched our own insurance company in

July 2016 to provide better value-for-money

insurance to our members.

We’re extremely member

focused and strongly value

our external relationships.


Retirement funding is one of your key financial objectives.

Super is a powerful and tax-effective savings option.

Super can sometimes seem complicated, but we’re here every step of the way to provide whatever help you need.

Why is super important?

QSuper | QInvest Presentation

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