Superannuation

Assessment Description

Adam, aged 53, is an electrician, has been your client for many years. This year Adams father passed away leaving him an inheritance of $450,000.Adam realising the importance of having sufficient funds in retirement decided to contribute the inherited funds into her superannuation account as a non-concessional contribution.

Questions:

1.If Adam contributes the $450,000 inheritance money as a non-concessional contribution, by how much will he be breaching the non-concessional contributions cap?

2.Provide Adam with advice on how he could increase his superannuation?

3.Adams electrical business has not been doing well and Adam has worked this year for a large engineering firm.Adams assessable income is $35,000.How much is Adams employer required to contribute to his super fund as part of the Superannuation Guarantee? Provide your answer in Dollars not a percentage

4.After considering the contributions tax, how many dollars will actually be invested from the employers contribution?

5.Is the Low Income Superannuation Contribution refund applicable to Adam?Explain.

6.After considering the contributions tax on the employer contribution and the Low Income Superannuation Contribution refund, how many dollars of the employers Superannuation Guarantee contribution will actually be invested in Adams super fund?

7.

Adams brother, Benjamin, is currently age 63. He plans to retire on 30 June 2014 and will turn 65 on 15 August 2013. He wants to contribute the maximum possible into super so he can enjoy the benefits of a tax-free pension. Devise a strategy that is most likely to meet his objective of maximising concessional and non-concessional contributions for 2012/13 and 2013/14 financial years without creating an excess concessional or non-concessional contribution.