WEALTH INSIGHTS 26 th May 2016 What a Wonderful World Jonathan - - PowerPoint PPT Presentation

WEALTH INSIGHTS

26th May 2016

Jonathan Pain

What a Wonderful World

Beware the prism through which you view the world

• Bad news sells newspapers
• 7 billion people in the world
• View from 1-Al8tude Bar Singapore
• Ingenuity of humanity
• Out of Africa

USA

• S8ll the greatest na8on of innova8on?
• The land of the free?
• Some slowing in growth, but ok
• Donald Trump -the new poli8cal reality
• Ted Cruz- “Lucifer in the flesh”

Europe

• Please don’t men8on Greece!
• Lower oil prices
• Truck sales
• Super Mario does it again
• Slow but steady recovery

China

• AQer a stunning rise comes a crash
• Government meddling disappoin8ng
• 6% growth in 2016 and 5-6% in medium term
• High levels of debt
• South China Sea

India

• India to grow faster than China
• A ‘Modi-fied’ India!
• Oil price decline a posi8ve
• A second sleeping giant awakes

Rise of Asian middle classes

• Chinese and Indian consumers will be

spending nearly $10 trillion by 2020*

• Indonesia, Vietnam, Bangladesh, Philippines
• Most significant economic phenomenon of
• ur life8me

*Source: ‘The $10 Trillion Prize’ , Silverstein, Singhi, Liao, Michael, The Boston Consul8ng Group

Australia

• The great rebalancing
• A ‘sizzling’ 3% but weaker growth ahead
• House prices set to decline
• A na8on of real estate agents
• Rising incomes in Asia: green and clean

Australia=opportunity

• More beach...

Challenges ahead

• Too much debt
• Emerging market debt...China
• ‘Omnipotency’ of monetary policy?

What a Wonderful World

• Na8onality, colour and gender are becoming

irrelevant as we become ideologically more united and becer educated.

• The digital age gives us a greater degree of

transparency and connec8vity.

• The decades ahead will see an era of

prosperity, enlightenment and opportunity that very few are predic8ng.

This presenta8on has been prepared by JP Consul8ng (ACN 101 761 433) and is for general informa8on only. Every effort has been made to ensure that it is accurate, however it is not intended to be a complete descrip8on of the macers described. It does not contain and is not to be taken as containing any securi8es advice or securi8es recommenda8on. Furthermore, it is not intended that it be relied on by recipients for the purpose of making investment decisions. JP Consul8ng does not give any warranty as to the accuracy, reliability or completeness of informa8on which is contained in this presenta8on. Except insofar as liability under any statute cannot be excluded, JP Consul8ng and its directors, employees and consultants do not accept any liability for any error or omission in this presenta8on or for any resul8ng loss or damage suffered by the recipient or any other person. Unless otherwise noted, JP Consul8ng is the source of all charts.

Questions for Jonathan?

SUPERANNUATION

The Past, Present and Future

Anthony Flapper

Head of Private Wealth

What we will cover

Rules we are playing under Where to from here? Strategies for consideration

Current vs Proposed

Issue Current Rules Proposed Measures Proposed Start Date Concessional Contributions 49 and Under $30,000 50 and Over $35,000 $25,000 limit irrespective of age 01/07/17 Non Concessional Contributions $180,000 annually, $540,000 bring forward rule $500,000 Lifetime cap 03/05/16 Tax Deductions for Personal Contributions Self employed need to meet 10% test for deductible status Deductible contributions available up to age 74 irrespective of employment status 01/07/17 Div 293 / High Income Earners Adjusted Taxable Income over $300,000 – 15% additional tax

• n concessional

contributions Adjusted Taxable Income over $250,000 – 15% additional tax

• n concessional

contributions 01/07/17

Issue Current Rules Proposed Measures Proposed Start Date Transition to Retirement Pensions Tax Free earnings when member in pension phase 15% tax on earnings in pension phase 01/07/17 $1.6m Cap on Super Transfers into Retirement Products Not applicable Balances in excess of $1.6m will be taxed on earnings at 15% inside fund 01/07/17 Work Test 65-74y.o. currently need to meet work test

• f 40hrs in 30 days

paid employment Removal of work test so anyone up to age 74 can make personal contributions 01/07/17 Catch up Concessional Contributions Not Applicable Accruing of unused Concessional Contributions Cap for a period of 5yrs if fund balance below $500,000 01/07/17

Concessional Contributions – caps,

deductions and carry forward

Re-contributions Segregation of assets Spouse Balancing Family Trusts Insurance Bonds

Where to from here?

Retirees (age 65+)

Where to from here?

Pre-Retirees (Age 55-65)

Concessional Contributions – caps, carry forward Non-Concessional Contributions – since 01/07/07 Transition to Retirement – cease or start Spouse balancing CGT Retirement Exemption Family Trusts Insurance Bonds

Where to from here?

Accumulators (under 55’s)

Concessional Contributions – caps,

deductions and carry forward

Borrowing inside SMSF’s Spouse Balancing Family Trusts Insurance Bonds Start contributing earlier – the value of

compounding

Opportunities

Family Trusts – a resurgence!

Ability to build assets in protected structure Use of lower marginal tax rates potentially

– spouses, adult children, etc

Continuance post death of generations of

family members

Opportunities

Insurance Bonds – an alternative

Investment into Company Structure taxed at corporate rates Tax Free return on investment post 10 year holding period CGT Free internal switches between investment options CGT Free transfers of ownership between individuals Held outside the Will and not challengable by the estate

Opportunities

$1.6m cap – segregation of assets Pension phase now – realising gains

pre 1/7/17 if over/near $1.6m

Using c/fwd Concessional Caps Excess funds drawn from pension

• vs. accumulation accounts

Disclaimer

This presentation has been prepared by Matthews Steer Pty Ltd, an Authorised Representative of Premium Wealth Management (ABN 11 091 418 861; AFSL 237498) and is for general information only. The presentation has been prepared without taking into account your personal objectives, financial situation or needs. You should assess whether the information is appropriate for your needs and consider talking to a Premium Wealth Management Authorised Representative before making any investment decision. The relevant PDS should be considered before making a decision about any financial product. 26th May 2016

THANK YOU

Anthony Flapper Head of Private Wealth aflapper@matsteer.com.au| 03 9325 6300

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