1. Smart EOFY Strategies For 30 June 2017 A presentation to Client Name
Date
Presented by
Firstname Surname
Jobtitle/Position

2. Disclaimer
Important information: This presentation is provided by [Adviser name] of [CAR name] an authorised representative of [Licensee name], AFSL [X], a member of the National Australia Bank group of companies (“NAB Group”)” Any financial advice contained in this publication is general only and has not been prepared having regard to your personal circumstances. You should consider your personal circumstances before acting on any advice. Before making any decision about whether to invest with MLC, please consider the Product Disclosure Statement to which the investment relates. This document contains general information only. <Adviser Business name> is not a registered tax agent. If you wish to rely on this letter to determine your personal tax obligations, you should consult with a Registered Tax Agent. In preparing this information, <Insert adviser Business name> did not take into account the investment objectives, financial situation or particular needs of any particular person. Before making an investment decision, a person needs to consider (with or without the advice or assistance of an adviser) whether this information is appropriate to their needs, objectives and circumstances. Any tax estimates provided in this publication are intended as a guide only and are based on our general understanding of taxation laws. They are not intended to be a substitute for specialised taxation advice or a complete assessment of your liabilities, obligations or claim entitlements that arise, or could arise, under taxation law, and we recommend you consult with a registered tax agent. This information is based on our interpretation of relevant superannuation, social security and taxation laws as at 11 May 2017 MLC Superannuation (issued by NULIS Nominees (Australia) Limited) is part of the NAB Group’s wealth management business. MLC Life Insurance (issued by MLC Limited) is part of the Nippon Life Insurance Group and is not a part of the NAB Group. An investment with MLC or insurance with MLC Life Insurance is not a deposit or liability of, and is not guaranteed by, NAB.
Smart EOFY Strategies for 30 June 2017

3. Notice
Unless stated otherwise, this presentation does not take into account any of the super changes that have an implementation date in future financial years.
Smart EOFY Strategies for 30 June 2017

4. Agenda Why invest via super? Super strategies Insurance strategies
Other tax-effective year-end opportunities
How I can help?
Smart EOFY Strategies for 30 June 2017

5. Why invest via super? Tax concessions every step of the way
1. When you contribute to super, you could potentially
Make contributions from pre-tax salary1
Claim contributions as a tax deduction1
Get a Government co-contribution of up to $500²
Get a tax offset of up to $540
Now
Retirement
1 Salary sacrifice, personal deductible and other concessional contributions are taxed at up to 15% in the fund. An additional 15% tax is payable if income plus concessional contributions exceeds $300,000 in 2016/17 (or $250,000 from 1 July 2017).
² Certain eligibility criteria apply.
Smart EOFY Strategies for 30 June 2017

6. Why invest via super? Tax concessions every step of the way Now
Retirement
2. While build up super
Earnings in fund taxed at maximum of 15%
Earnings from investments in own name taxed at up to 49%1
1 Includes a Medicare levy of 2% and the Temporary Budget Repair levy (in 2016/17) of 2% .
Smart EOFY Strategies for 30 June 2017

7. Why invest via super? Tax concessions every step of the way Now
Retirement
3. If receive super as retirement income stream
No tax on investment earnings
Tax offset between preservation age1 and 592
Tax-free income at 60 and over 2
1 Your preservation age ranges from age 55 to 60 depending on your date of birth.
2 Assumes no untaxed element.
Smart EOFY Strategies for 30 June 2017

8. Super EOFY strategies Get more from your salary or bonus If you…
are an employee
You may want to…
salary sacrifice your pre-tax salary or bonus into super rather than receive it as cash
So you can potentially…
reduce tax payable on salary or bonus by up to 34%
take advantage of higher contribution cap that applies this financial year
grow your retirement savings
Can only contribute salary not yet earned
Need a salary sacrifice agreement
Don’t exceed cap – penalties can apply
Smart EOFY Strategies for 30 June 2017

9. Salary sacrifice – case study
William is aged 45
About to receive a $5,000 pa salary increase
Will bring his total salary to $100,000 pa
Considering salary sacrificing this additional $5,000 into super
Smart EOFY Strategies for 30 June 2017

10. Salary sacrifice – case study
Per annum
Sacrifice pay rise into super
Receive pay rise as after-tax salary & invest outside super
Pre-tax pay rise
$5,000
Less income tax at 39%1
(N/A)
($1,950)
Less tax on super contribution
($750)
Net amount invested
$4,250
$3,050
Additional amount invested
$1,200
Tax payable on investment earnings
15%
39%
1 Includes a Medicare levy of 2%.
Smart EOFY Strategies for 30 June 2017

11. Super EOFY strategies Make tax deductible super contributions If you…
are self-employed or not employed
You may want to…
make personal super contributions
So you can potentially…
claim some (or all) of contribution as tax deduction
take advantage of higher contribution cap that applies this financial year
grow your retirement savings
Need to complete valid ‘notice of intent’ and receive acknowledgment that form has been received and accepted by your super fund
Don’t exceed cap – penalties can apply
Smart EOFY Strategies for 30 June 2017 11

12. Insert relevant picture
Personal deductible contributions – case study
Bob is aged 55
Self-employed and earns $80,000 pa
Plans to retire in 10 years and wants to boost his retirement savings
Considering making a personal super contribution of $10,000 and claiming contribution as a deduction
Insert relevant picture
Smart EOFY Strategies for 30 June 2017

13. Personal deductible contributions – case study
Make personal contribution
Make personal contribution and claim deduction
Personal super contribution
$10,000
Assessable income
$80,000
Less deduction claimed
Nil
($10,000)
Taxable income
$70,000
Income tax and Medicare
$19,147
$15,697
Income tax and Medicare saving
$3,450
Less fund tax on deductible contribution
($1,500)
Net tax saving
$1,950
Smart EOFY Strategies for 30 June 2017

14. DON’T EXCEED CAP – PENALTIES CAN APPLY
Consider concessional contribution cap
Applies to…
superannuation guarantee contributions
salary sacrifice contributions
personal deductible contributions
other amounts
Age on previous 30 June
Annual cap amount
In 2016/17
From 2017/18
48 or under
$30,000
$25,000
49 or over
$35,000
DON’T EXCEED CAP – PENALTIES CAN APPLY
Smart EOFY Strategies for 30 June 2017

15. Super EOFY strategies Make after-tax contributions to super If you…
have an investment in your own name
You may want to…
cash out the investment and use the money to make a personal after-tax super contribution
So you can potentially…
reduce tax on investment earnings by up to 34%
take advantage of higher cap that applies this financial year
grow your retirement savings
Don’t exceed cap – penalties can apply
Smart EOFY Strategies for 30 June 2017

16. DON’T EXCEED CAP – PENALTIES CAN APPLY
Consider non-concessional contribution cap
Applies to…
personal after-tax contributions made
Spouse contributions received
In 2016/17
From 2017/18
Annual cap
$180,000
$100,000
Bring forward rule (available if < 65)
$540,000
$300,000
From 1/7/2017, NCCs can’t be made if have > $1.6 million in super
Transitional rules apply if contribute between $180,000 and $540,000 in 2015/16 or 2016/17
DON’T EXCEED CAP – PENALTIES CAN APPLY
Smart EOFY Strategies for 30 June 2017

17. Super EOFY strategies Get a super top up from the Government If you…
earn at least 10% of income from employment or self-employment
earn a total income of less than $51,0201
You may want to…
make personal after-tax super contribution
So you can potentially…
qualify for a Government co-contribution of up to $500
grow your retirement savings
Must earn $36,0211 or less and contribute $1,000 for full co-contribution
Spouse may qualify for co-contribution if you don’t
1 Includes assessable income, reportable fringe benefits and reportable employer super contributions. Other eligibility conditions apply.
Smart EOFY Strategies for 30 June 2017

18. Co-contribution – case study
Ryan is aged 40
Employed on salary of $35,000 pa
Wants to build his retirement savings
Considering making a personal super contribution of $1,000
Smart EOFY Strategies for 30 June 2017

19. Co-contribution – case study
Invest outside super
Make personal super contribution
Amount invested
$1,000
Plus co-contribution
Nil
$500
Total investment
$1,500
Tax payable on investment earnings
21%1
15%
1 Includes a Medicare levy of 2%.
Smart EOFY Strategies for 30 June 2017

20. Super EOFY strategies Boost partner's super and reduce your tax
If you…
have a spouse who earns less than $13,8001
satisfy other eligibility criteria
You may want to…
make after-tax super contribution on spouse’s behalf
So you can potentially…
receive tax offset of up to $540
grow spouse’s retirement savings
1 Includes assessable income, reportable fringe benefits and reportable employer super contributions. Other eligibility conditions apply.
Smart EOFY Strategies for 30 June 2017

21. Other super EOFY strategies
Make insurance more affordable
Buy life and total and permanent disability insurance in super
Self-employed
Claim super contributions as tax deduction
Employee
Buy insurance in super with pre-tax dollars
Eligible for co-contribution
Use co-contribution to help pay for future insurance
Concessions can:
make it more affordable to insure through super, or
enable you to purchase a higher level of cover
Smart EOFY Strategies for 30 June 2017

22. Insert relevant picture
Insurance in super – case study
Jack is aged 44
Earns salary of $100,000 pa
Is married to Claire, aged 41
Claire is on break from workforce looking after their young children
Jack needs $700,000 in life and total and permanent disability insurance
Annual premium is $1,000
Insert relevant picture
Smart EOFY Strategies for 30 June 2017

23. Insurance in super – case study
Insurance purchased outside super (with after-tax salary)
Insurance purchased in super (via salary sacrifice)
Annual premium
$1,000
Plus tax at marginal rate of 39%1
$639
N/A
Pre tax salary received or sacrificed
$1,639
Pre-tax saving
After-tax saving
$390
1 Includes a Medicare levy of 2%.
Smart EOFY Strategies for 30 June 2017

24. If you want to manage your cashflow tax-effectively, you could:
Other smart EOFY opportunities
Pre-pay expenses
If you want to manage your cashflow tax-effectively, you could:
Pre-pay annual premiums for an income protection policy held in your own name outside of super
Pre-pay up to 12 months’ interest on an investment loan (usually only available with fixed rate facilities)
Smart EOFY Strategies for 30 June 2017

25. Other smart EOFY strategies
Manage CGT
If you make a capital gain on asset sales this financial year…
Consider making a personal super contribution and claiming amount as tax deduction (if eligible)
If you have received a capital loss from your investments…
Consider utilising capital loss against any capital gains
If you are thinking of selling a profitable asset this financial year…
Consider deferring the sale until a future financial year
Smart EOFY Strategies for 30 June 2017

26. Start planning for EOFY 2017/18 now
Strategy wrap-up
Before June 30
After June 30
Super strategies
Salary sacrifice contributions
Personal deductible contributions
Personal after-tax contributions
Co-contributions
Spouse contributions
Key issues to consider
Review concessional contributions
Make the most of your tax refund
Insurance strategies
Buy life and TPD insurance in super
Pre-pay income protection outside super
Investment strategies
Manage CGT
Pre-pay investment loan interest
Start planning for EOFY 2017/18 now
Smart EOFY Strategies for 30 June 2017

27. How I can help?
Note to adviser: Optional slide(s)- e.g. relevant content regarding your advice services and how people can make an appointment.
Smart EOFY Strategies for 30 June 2017

28. Thank you
Contact details line 1
Contact details line 2