1. Uniting Church in Australia
HOME ENDOWMENT FUND CLOSURE Group information session
Uniting Church in Australia
JUNE 2019 Melbourne
Presenter – XXXXXX Authorised Representative #XXXXX
Mercer Financial Advice (Australia) Pty Ltd
Australian Financial Services Licence #41176

2. IMPORTANT NOTICE
This presentation has been prepared by Mercer Financial Advice (Australia) Pty Ltd (MFAAPL) ABN , Australian Financial Services Licence # Any advice contained in this presentation is of a general nature only, and does not take into account the personal needs and circumstances of any particular individual. Prior to acting on any information contained in this presentation, you need to take into account your own financial circumstances, consider the Product Disclosure Statement for any product you are considering, and seek professional advice from a licensed, or appropriately authorised financial adviser if you are unsure of what action to take. Mercer financial advisers are authorised representatives of MFAAPL. ‘MERCER’ is a registered trademark of Mercer (Australia) Pty Ltd ABN Copyright 2019 Mercer LLC. All rights reserved.

3. What does this mean for me?
What IS HAPPENING?
The Home Endowment Fund is closing
What does this mean for me?
You have three choices…
Contribute to Contribute to a superannuation fund
Contribute to a superannuation fund
a superannuation fund 1
Take the proceeds in cash – deposited into your bank account 2
A combination, some cash and a contribution into super 3

4. What should be considered when choosing an option?
Do I need the cash right now or can I wait?
Would a contribution to super mean less tax to pay?
Have I planned for retirement?
Do I need to save more for retirement?
And…
Have I thought about my investment options?

5. Taxation implications
If taken as cash
Added to your annual Income and tax paid at your Marginal Tax Rate.
Marginal Tax Rate – the highest rate of tax a taxpayer will pay on their income
Plus 2% Medicare levy

6. Example- what rate of tax will I pay if I take the cash option?
Assume my salary is $60,000, tax will be $11,047
Now, assume payment from HEF of $25,000
Total Taxable Income is $60,000 plus $25,000, therefore $85,000
New Tax Payable calculation
Plus 2% Medicare levy

7. Taxation implications
If you contribute to Super – Salary Sacrifice
Counts towards your concessional contribution cap.
Maximum of $25,000 per financial year, including any other salary sacrifice you’ve made AND employer contributions.
Taxed at 15%
Earnings on investments inside superannuation also taxed at 15%
Subject to preservation rules (age and genuine retirement)

8. If you contribute to Super – after tax
Taxation implications
If you contribute to Super – after tax
Pay tax at marginal tax rates
Counts towards your non concessional contribution cap.
Maximum of $100,000 per financial year*
Not taxed on entry into super fund
Earnings on investments inside superannuation taxed at 15%
Subject to preservation rules
*some exceptions apply

9. Example HEF $15,000 & 32.5% MTR, assume no post tax component
Take as Cash
Contribute $15,000
to Super
Gross Balance
$15,000
Income Tax at MTR e.g. 34.5% (includes 2% medicare levy)
Contributions Tax at 15%
$5,175
ATO
$2,250
Net
Balance $9,825
Balance $12,750
Available to spend
Contribute to Super as an after tax contribution

10. Example HEF $100,000 & 37% MTR, assume no post tax component
Gross Balance
$100,000
Contribute
to Super (15% tax)
Take as Cash
Considerations;
Contribute UP TO $25,000 pa. Will be less as this cap includes employer contributions
Income Tax at MTR e.g. 39% (new tax bracket!)
(includes 2% medicare levy)
ATO
$39,000
Net
Balance $61,000
Speak to a
Financial Adviser
Available to spend
Contribute to Super as an after tax contribution

11. Investment choice – Your statement

12. Environmental, social and corporate governance
Investment choice
Environmental, social and corporate governance
Mercer Socially Responsible Shares
Mercer Socially Responsible Australian Shares
Mercer Socially Responsible Global Shares (unhedged)
Mercer Socially Responsible Growth
To make a change – online or call the Helpline

13. Choose how your balance will be paid
Seek help from a Financial Adviser soon
Complete the nomination form and return by 17 July to;
or mail/hand deliver to
Level 5, 130 Little Collins Street, Melbourne, Vic 3000
Contact Elisa Bywater on if you require a new form or have questions

14. Seek out reliable advice to guide you through your options
Remember
Every single member has their own unique circumstances - WITHOUT EXCEPTION
Seek out reliable advice to guide you through your options

15. PHONE SUPPORt service- uniting church beneficiary fund
HELPLINE
Available 8am – 7pm
Factual information
Execute instructions
Update information
Mail information/forms
Set-up on-line access
Book phone advice – complimentary
Book for strategic advice – no obligation

16. YOU HOW CAN MERCER HELP? Financial Adviser Statement of Advice
goals, lifestyle, budget
Financial Adviser
Strategies to meet your goals
Super
Investments
Estate Planning
Social Security
Insurance
Statement of Advice

17. WHAT HAPPENS AT THE FIRST MEETING?
You – get the opportunity to meet with us and develop an understanding of who we are and what we do
We – get the opportunity to meet with you and develop an understanding of who you are and what you want to achieve
Direct number is or book on line at merceradvice.com/book
WHAT WILL IT COST?
There is no fee for the initial meeting
A fee will apply if you want us to prepare advice for you – will depend on the extent of work involved

18. QUESTIONS