Smart Defaults: why trustees dumping MySuper members in one investment bucket is no longer good enough in this digital age

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What would happen if you as a professional financial adviser placed all your clients in the same investment, regardless of amount involved or remaining human capital, for up to the next 45 years? Surely your colleagues and peers wouldn’t let you do it! You would lose credibility, face inquiries, lose accreditation and have to leave […]

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Why the industry’s “comfortable retirement” measures are wrong

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The superannuation industry has placed an extraordinary emphasis on helping members achieve a “comfortable” retirement given it has so little information about what it actually means. What we do know is largely composed of averages and assumptions which are ranked against the ASFA Retirement Standard’s portrait of the average Australian. The standard represented an important […]

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The Fair and Sustainable Superannuation amendments will soon be upon us… but what to do next?

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Online legal documents provider, SUPERCentral, has produced a list of issues to consider and potentially action for superannuation clients by their accountants and advisers. The New Super Laws Checklist was produced in response to the ‘Fair and Sustainable Superannuation’ amendments that constitute the most significant change to superannuation in the last 10 years. “We produced […]

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Water Corporation to join AMP’s SignatureSuper

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AMP  has announced that Western Australia’s Water Corporation Superannuation Plan will transfer to AMP’s SignatureSuper master trust. The  Water Corporation Superannuation Plan currently has more than 3,500 members and $450 million in funds under management. AMP  was selected after an extensive tender process to find a fund that was competitive on price, delivers a high-quality […]

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CPD: Using investment bonds to increase age pension and manage the intergenerational transfer of wealth

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Utilising investment bonds to manage intergenerational transfer of wealth post 1 January 2017 may have the by-product of increasing Age Pension entitlements – Case Study Bob (78) and Margaret (68). With changes to the age pension assets test that came into effect from 1 January 2017, existing part–pensioners may be considering their options to retain […]

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Parametric cautions super funds: Franking is no free lunch, but super funds “can express their exact dietary requirements”

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Superannuation funds looking to deliberately tilt their Australian equity portfolios to maximise the benefits of franking credits need to address the significant risks inherent in such an investment approach, says the US fund manager, Parametric, in a new research paper titled “A Fresh Look At Franking”. The paper highlights that franking credits can be a […]

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REST launches super industry-first to service member enquiries 24/7

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REST Industry Super has become Australia’s first superannuation fund to service its 1.9 million members’ enquiries online 24/7 with the launch of ‘Roger’ – REST’s online virtual customer service specialist. ‘Roger’ instantly responds to REST member’s super-related queries online, 24/7 and from any internet-enabled device. REST Industry Super CEO Damian Hill said the new virtual […]

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Who should be the Appointer of a family trust?

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When completing an instruction form for arranging a new family trust for a client, it is very likely that the form will ask the question – Who do you want to be the “Appointor” of the trust? It’s a very important question, because typically the appointor is the person who has the power to “hire […]

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Can a member still bring forward their non-concessional cap?

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The introduction of the new $1.6M cap has changed the game for members wanting to make contributions in advance – so-called ‘bring forward’ contributions. The legislation not only introduces eligibility requirements, it also requires members to meet further criteria at the beginning of each year making up their bring forward period before being able to […]

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Who will be affected by the new pension changes?

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On 1st January 2017, the Australian Government implemented changes to the assets test used to calculate pensions. These changes include imposing new asset limits and will not affect everyone, but there will always be people on the borderline who need to make sure that the new rules do not adversely affect their entitlement to a […]

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