APS Tax
&
Accounting
Richard Ferraro at APS Tax, Accounting and Business Services is an experienced CPA taxation accountant. Whether it is setting up a business, managing your superannuation fund or just obtaining quality service, Richard can help you.
APS Financial Planning
Timothy Foster provides access to advice and information on the important financial decisions we all face, whether it be superannuation, investments, pre and post retirement planning, life insurance, gearing, disability and trauma insurance, managed funds or savings plans.
APS Mortgage Broking
Sam Athans treats every mortgage as if it were his own. He has access to 20 mortgage lenders and has over 40 years experience in banking.
Let us do the leg work for you.
APS Insurance (General Insurance Broking)
Danielle Rowe heads up our insurance broking team and is a salaried employee of APS Benefits. With over 15 years experience in the industry, Danielle has access to products that include home and contents, motor vehicle, boat/caravan, landlord, public liability, income protection, life, disability & trauma insurance. The next time you receive your insurancerenewal notice or want insurance for the first time, call Danielle on 1300 131 809.
APS Personal Loans
The APS Benefits personal loans team can assist members to obtain an unsecured loan, or they can apply online at www.apsbs.com.au. Either way, loans can be approved within 24 hours.
APS Funeral Cover. Adult
&
Child Cover Available.
APS Benefits Membership Coordinator Jesse Clarke can assist members to gain immediate funeral cover up to $20,000 for adults and $7,000 for dependent children (aged 2 to 15 next birthday). Do you have cover in the greatest time of need? Call us on 1300 131 809.
APS Savings
APS Savings Ltd is a wholly owned subsidiary of APS Benefits and offers a Fixed Term Investment product. Ask Sam Athans about the interest rate on offer and you will be pleasantly suprised. The term can be 30 days, 6 months, 12 months or 24 months. Call us on 1300 131 809.
APS Wills
&
Estates
Phil Lambourne from APS Wills & Estates has over 25 years experience as a lawyer. Phil can help you with wills, powers of attorney, probate and estate administration. Is your will up-to-date? Have you reviewed your will recently? It affects more than just you!
APS Benevolent Foundation
Recently launched, the Foundation is a registered charity and a deductible gift recipient. Donations above $2 are tax deductible. The Foundation will enable the Society to expand our level of benevolence. Need to know more? Call us on 1300 131 809.
Further to this, APS is owned by its members, so any profits are channelled back to members. Help spread the word by introducing new members and APS will send you, your nominated charity or your staff social club $50 for each new member you nominate.
For more information call us on
1300 131 809
or visit
www.apsbs.com.au
EDITORIAL ADVERT A4.pdf 1 15/08/14 11:15 AM
A Message from Craig Walden
CEO of the Australian Public Service Benevolent Society Ltd (APS Benefits)
SEPTEMBER
2014
IN THIS ISSUE
pagE 2
New Membership & Loan Pack is now available
Update your personal details with APS Online
pagE 3
APS Wills & Estates
pagE 4
Fact Sheet - Secured Car LoanspagE 5
APS Tax & Accounting APS Insurance Broking APS Property Loans
pagE 6
APS Financial Planning
pagE 7
Credit Card Debt & Children’s Funeral Benefit
pagE 8
Deceased Members
APS Benevolent FoundAtion
donAtionS APProAch $500,000
We are very excited to announce that the APS Benevolent Foundation has received $407,452 in donations. Our aim is to reach $500,000 by the end of 2014.The Foundation is a registered charity and a deductible gift recipient and as such any donations it receives above $2 are tax deductible. The Foundation is administered by the staff of the Australian Public Service Benevolent Society Ltd with all costs borne by the Society, so that people making
donations are assured that every dollar is used to fund benevolent projects. The Cerebral Palsy Education Centre (CPEC)
through their association with the APS Benevolent Foundation is now one of the only centres in Australia with Eye Gaze Technology, donated through funding from the Foundation. CPEC received $27,500 from the APS Benevolent Foundation. This is going to make the world of difference in being able to immediately ascertain where a child’s eyes are focusing. To give an example of how this could help, if a therapist has been standing in front of the child and their vision only allows them to see from the side then the therapist has wasted time continually
standing in the wrong position. Many children with Cerebral Palsy have limited vision when they are young and cannot communicate that they cannot see. This machine will determine that and save so much time. We will see more rapid results in communicating with the kids.
APS Benefits sees this contribution as an integral part of its commitment to the community and indeed the families of disadvantaged children.
The Society has a long history of providing benevolent grants to its members in times of need and of supporting a plethora of community events – the Foundation will enable us to expand our level of benevolence.
The Foundation is totally transparent as to the benevolent
projects it supports. If you would like more information in relation to the Foundation please go to the APS Benefits website at www.apsbs.com.au or call us on 1300 131 809.
Summary:
Donations are tax deductible
all expenses will be paid by the Society
all donations are available for benevolent projects
Donors will be kept informed of the Foundation’s projects
$
500,000
$400,000 $300,000 $200,000 $100,000$
407,652
TARGET
31/12/2014APS Benevolent Foundation Ltd (ACN 162 613 952) is trustee for the APS Benevolent Foundation (ABN 43 6782 464 060).
The APS Benevolent Foundation is a registered charity on the Australian Charities and Not-for-profits Commission register and an Australian Taxation Office endorsed Deductible Gift Recipient.
D
efenceM
eMbers-
U
rgentA
ctionr
eqUireDPlease refer to the top of page 2 of your benefit statement (enclosed
herein) for information re the cessation of defence payroll deductions to
APSBS from February 2015, or call us on 1300 131 809 for information.
NEW MEMBErSHIP & LOAN PACK
IS NOW AVAILABLE
Available from the APS Benefits website on
www.apsbs.com.au is our new Membership & Loan Pack.
The Membership & Loan Pack includes;
• Company History • Business Directory
• Membership Rewards Program &
Point-of-Sale Information
• Funeral Benefit Cover table • Company Contacts
• Membership Application • Identification Requirements • Loan Application
• Financial Services Guide &
Product Disclosure Statement, and • Everyday Loan Repayment Schedule. To obtain hard copies, call our customer
service on 1300 131 809 or download a copy
from our website in the Downloads section.
2
Enter
APS Online
to access and
update your personal information.
Have you checked that your contact details are up-to-date lately?
We communicate with you either in writing or electronically so we need
to ensure your home or business address is current, your email address is current and also your home/business phone or mobile telephone numbers
are current.
We have close to 28,000 members and clients, but many do not have some
of these contact details and many do not keep them up-to-date. It is easy
to update them.
Enter APS Online via our website at www.apsbs.com.au and click on the
APS Online image on the right hand side of the home page (shown left).
This is an online facility that enables you to access and update
your personal information.
To ensure your information is secure, you will need to log in
using your Login Name (which is your Membership Number
being up to 6 numeric digits) and Access Code (or password).
Your Access Code (unless you have already updated it) is
your date of birth in a 6 digit format DDMMYY. Once you login for the first time, you will be required to change your access code by following the prompts. If you have forgotten your
Access Code contact the office on 1300 131 809.
Pocket Diary
www.apsbs.com.au
Australian Public Service Benevolent Society Limited Level 1, 16-20 Howard Street North Melbourne VIC 3051 Toll Free 1300 131 809 Phone (03) 9322 2000Fax (03) 8327 8200 BENEVOLENT FOUNDATION CAR LOANS FINANCIAL PLANNING
FIXED TERM INVESTMENTS
FUNERAL COVER
FUNERAL SERVICES
GENERAL INSURANCE BROKING
MORTGAGE BROKING
PERSONAL LOANS
PROPERTY LOANS
TAX & ACCOUNTING
WILLS ESTATES & PROBATE APSB Diary Cover 2015.pdf 1 18/08/
14 4:33 PM THE AUSTRALIAN PUBLIC BENEVOLENT SOCIETY
1. Membership subscriptions of $6.00 per fortnight (that can be de
ducted from
your salary in most cases) entitles you to funeral cover that c an be paid within
24 hours of your passing (not weeks or even months),
2. Membership subscriptions of $6.00 per fortnight entitles you to
LIFE LoNG
MEMBE rSHIp (don’t be r
estricted to funeral cover that ceases befor e you die),
3. Membership for existing members is FREE after you tur
n 70, 4. Funeral benefits available to all aged 1-100. See the levels of cover on the next page,
5. Access to all NOT-FOR-PROFIT financial and pr
ofessional services such APS Financial
Planning, APS T
ax, Accounting & Business Services, APS Mortgage Br oking, APS
Special Purpose and Everyday Loans, APS Savings, APS Secur ed Car Loans, APS
General Insurance Br oking, APS W
ills & Estates all at not-for-pr ofit prices,
6. Trust and Peace of Mind that has been built since 1905,
7. No medical checks or questions,
8. Guaranteed acceptance of your funeral benefit application,
9. Our pr
ofits are retur
ned to members by incr
easing your funeral benefit. Y ou own us!
10. Apply for a loan online and check its pr
ogress online – it’s easy,
11. Refer a friend that joins as a member of
APS
and receive $50 as a thank you (excluding
Children’s Funeral Cover).
12. Follow the pr
ogress of the APS Benevolent Foundation making a dif ference. ESTABLISHED 1905 ONLINE FUNERALS SAVINGS ACCOUNTS
MEMBERSHIP HAS ITS REWARDS
JULY 2014 5 Public holidays Cale ndar 2015 JaNuaRy FEbRuaRy MaRch SMT WTFS SMT WTFSSMT W TFS 1 2 31 2 3 45 67 1 23 45 67 4 56 78 9108 910 11 1213 1489 10 11 1213 14 11 12 1314 15 161715 16 1718 19 202115 16 1718 19 202118 19 2021 22 232422 23 2425 26 272822 23 2425 26 2728 2526 27 28 2930 31 29 30 31 aPRil May JuNE SMT W TFSSM T WTFSSM T WTFS 1 23431 1 2 1 23 45 6 56 7 89 10 113 45 6 7 8978 9 10 1112 13 12 13 1415 16 171810 11 1213 14 151614 15 1617 18 1920 19 20 2122 23 2425 17 18 1920 21 222321 22 2324 25 2627 26 27 2829 30 24 25 2627 28 293028 29 30 July auGusT sEPTEMbER SMT WTFS SMT WTFS SMT WTFS 1 23 4 30 311 1 23 45 5 6 7 89 10 11 2 34 56 78 6 78 910 11 12 12 13 1415 16 17189 10 1112 13 141513 14 1516 17 1819 19 20 2122 23 242516 17 1819 20 212220 21 2223 24 2526 26 27 2829 30 31 23 24 2526 27 282927 28 2930 ocTobER NoVEMbER dEcEMbER SMT WTFS SMT WTFS SMT WTFS 1 231 234 56 7 1 23 45 4 56 78 9108 910 11 1213 14 6 78 910 11 12 11 12 1314 15 161715 16 1718 19 202113 14 1516 17 1819 18 19 2021 22 232422 23 2425 26 272820 21 2223 2425 26 25 26 2728 29 303129 30 27 28 2930 31 Fridge Magnet Calendar 2015 JaNuaRyFEbRuaRy MaRch s MT WT Fss MT WT Fss MT WT Fs 1 2 3 12 3 45 6 71 2 34 5 67 4 5 67 8 910 8 910 11 1213 14 8910 11 1213 14 11 12 1314 15 1617 15 1617 18 1920 21 1516 17 1819 20 21 18 19 2021 22 2324 22 2324 25 2627 28 22 23 24 25 26 27 28 252627 28 2930 31 29 30 31 aPRilMay JuNE s MT WT Fss MT WT Fss MT WT Fs 1 234 31 1 21 2 34 5 6 56 7 8 910 11 34 5 67 8 9789 10 1112 13 12 13 1415 16 1718 10 1112 13 1415 16 1415 16 1718 19 2019 20 2122 23 2425 17 18 19 2021 22 2321 22 2324 25 2627 26 27 2829 30 24 25 2627 28 2930 28 29 30 July auGusT sEPTEMbER s MT WT Fss MT WT Fss MT WT Fs 1 2 34 30 31 11 2 34 5 5 6 78 9 1011 2 34 5 67 8 67 8 910 11 12 12 13 1415 16 1718 9 1011 12 1314 15 1314 15 1617 18 19 19 20 2122 23 2425 16 1718 19 2021 22 2021 22 2324 25 26 26 27 2829 30 31 23 24 2526 27 2829 27 28 29 30 ocTobERNoVEMbER dEcEMbER s MT WT Fss MT WT Fss MT WT Fs 1 2 31 234 5 671 2 34 5 4 5 67 8 910 8 910 11 1213 14 67 8 910 11 12 11 12 1314 15 1617 15 1617 18 1920 21 1314 15 1617 18 19 18 19 2021 22 2324 22 2324 25 2627 28 2021 22 232425 26 25 26 2728 29 3031 29 30 27 28 2930 31 Public holidays 2015 POCKET CALENDAR.indd 1 10/07/14 12:04 PM Australian Public Service Benevolent Society Limited Level 1, 16-20 Howard Street, North Melbourne VIC 3051 Toll Free 1300 131 809 Phone (03) 9322 2000 Fax (03) 8327 8200 BENEVOLENT FOUNDATION
PROPERTY, CAR & PERSONAL LOANS
FINANCIAL PLANNING
FIXED TERM INVESTMENTS
FUNERAL COVER
GENERAL INSURANCE BROKING
MORTGAGE BROKING
TAX & ACCOUNTING
WILLS ESTATES & PRO BATE
Membership of APS Benefits automatically entitles you to a funeral benefit issued by APS Benefits. You should consider the Combined Product Disclosure Statement & Financial Services Guide (available from APS Benefits or our web site on www.apsbs.com.au) before making a decision to become a member of APS Benefits or buy any products offered by APS Benefits. Financial services provided by Australian Public Service Benevolent Society Ltd are provided under its AFSL No. 244115. APS Financial Planning Pty Ltd is a Corporate Authorised Representative (No. 305923)
of Patron Financial Advice (“Patron”). Financial services provided by APS Financial Planning Pty Ltd are provided under Patron’s AFSL No. 307379. APS Savings Disclaimer: This is not a bank product, it is an unlisted APS Note. No independent assessment has been made about the risk to investors losing any of their principal investment. Applications for APS Notes can only be made on the Investment Application Form which accompanie
s the prospectus issued by APS Savings Ltd. Please read the prospectus carefully before deciding whether to make an investment. APS Wills & Estates: Liability limited by a scheme approved under Professional Standards Legislation. APS POCKET CALENDAR 2014 -
front.pdf 1 3/07/14 5:45 PM 2015 PO CKET CALE NDAR.indd 2 10/07/14 12:04 PM Pocket Calendar POINT OF SALE Now Ava ilable!
pay to APS Benefits Member / No minated Charity / S ocial or Sporting C lub the sum of Fifty Dollars $50 MEMBErSHIp rEWArDS APS Benefits
Australian public Service Benevolent Societ y Limited ESTABLISHED 1905 ONLINE FUNERALS SAVI NGS ACCOUNTS
APS Tax & Accounting
Richard Ferraro at APS
Tax, Accounting and Business Se rvices is an experienced
CPA taxation accountant. Whether it is setting up a b usiness, managing your
superannuation fund or just
obtaining quality service, Richa rd can help you.
APS Financial Planning
Timothy Foster provides access to advice and inform ation on the important
financial decisions we all face, whether it be superann uation, investments,
pre and post retirement planning, life insurance, gearin g, disability and trauma
insurance, managed funds or savings plans.
APS Mortgage Broking
Sam Athans treats every mortgage as if it we
re his own. He has access to 20
mortgage lenders
and has over 40 years experience in banking.
Let us do the leg work for you.
APS Insurance (General Insurance Broking)
Danielle Rowe heads up our insurance
broking team and is a salaried employee of APS Benefits.
With over 15 years experie nce in the industry,
Danielle has access to products that include home
and contents, motor
vehicle, boat/caravan, lan dlord, public liability, incom
e protection, life,
disability & trauma insurance. The next time you receive your insurance
renewal notice or want
insurance for the first time, call Danielle on 1300 131 809
.
APS Personal Loans
The APS Benefits personal loans team can assist mem bers to obtain an
unsecured loan, or they can apply online at
www.apsbs.com.au. Either way,
loans can be approved within 24 hours.
APS Funeral Cover. Adult
& Child Cover Available.
APS Benefits Membership Coo rdinator Jesse Clarke ca
n assist members to gain
immediate funeral cover up to $20,000 for adults and $7,000 for dependent
children (aged 2 to 15 next birthday). Do you have c
over in the greatest time
of need? Call us on 1300 131 809.
APS Savings
APS Savings Ltd is a wholly owned subsidiary of APS B enefits and offers a Fixed
Term Investment product. Ask Sam Athans about the interest rate on o
ffer and
you will be pleasantly suprised. The
term can be 30 days, 6 months, 12 months or 24 months. Call us on
1300 131 809.
APS Wills & Estates
Phil Lambourne from APS
Wills & Estates has over 25 years experience as a lawyer. Phil can help
you with wills, powers of atto rney, probate and estate
administration. Is your will up-to-date? Have you reviewed your will
recently?
It affects more than just you!
APS Benevolent Foundation
Recently launched, the Foundation is a registered ch arity and a deductible
gift recipient. Donations above $2 are tax deductible. The Foundation will
enable the Society to expand our level of benevolenc e. Need to know more?
Call us on 1300 131 809. Further to this, APS is owned by its members, so a
ny profits are channelled
back to members. Help spread the wo
rd by introducing new members and APS will send you, your nominated
charity or your staff social club $50 for each new member you nominate.
For more information call us on
1300 131 809
or visit www.apsbs.com.au EDITORIAL ADVERT A4.pdf 1 15/08/14 11:15 AM
4 BUSINESS DIRECTORY A U S T R A L I A N P U B L I C S E R V I C E BENEVOLENT SOCIETY LTD MEMBERSHIP COVER2.pdf 1 20/08/14 11:22 AM
$50
MEMBERSHIP REWARDS ESTABLISHED 1905 ONLINE FUNERALS SAVINGS ACCOUNTS $50 reward member.indd 1 20/08/14 1:11 PMMembership of APS Benefits automatically entitles you to a funeral benefit issued by APS Benefits. You should consider the Combined Product Disclosure Statement & Financial Services Guide (available from APS Benefits or our website on www.apsbs.com.au) before making a decision to become a member of APS Benefits or buy any products offered by APS Benefits. Financial services provided by Australian Public Service Benevolent Society Ltd are provided under its AFSL No. 244115. APS Financial Planning Pty Ltd is a Corporate Authorised Representative (No. 305923) of Patron Financial Advice (“Patron”). Financial services provided by APS Financial Planning Pty Ltd are provided under Patron’s AFSL No. 307379. APS Savings Disclaimer: This is not a bank product, it is an unlisted APS Note. No independent assessment has been made about the risk to investors losing any of their principal investment. Applications for APS Notes can only be made on the Investment Application Form which accompanies the prospectus issued by APS Savings Ltd. Please read the prospectus carefully before deciding
bg1.pdf 1 26/08/14 2:00 PM
APS WILLS & ESTATES
3
THE IMPOrTANCE OF BINdINg
SuPErANNuATION NOMINATIONS
Do you have superannuation in any of the following?
• PSSAP – (e.g. if you have joined the Commonwealth Public Service within the last 9 years),
• An industry Fund (e.g. CBus, HESTA, Hostplus),
• A public retail fund (e.g. AMP Super, Colonial First State, BT Super), or • A self-managed superannuation fund (you are a trustee or director of
trustee).
If so, then it is important that you consider putting in place a “binding death
benefit nomination” (BDBN) to cover what happens to your superannuation when you pass away.
If you already have a BDBN in place, you should check that it is still what you want and that it has not lapsed.
If you do not have a BDBN then it will be up to the trustee of the super fund
to decide where your super is paid, which may not be what you would have wanted at all. Also, the absence of a BDBN will most likely cause unnecessary additional time, cost and inconvenience to the persons you have appointed as executors in your will. If you do not have a will then the potential problem is compounded.
A recent court case has highlighted this issue. The case concerned a
mother who was in charge of the estate of her late son, where there was no will and there was superannuation not covered by a BDBN. The court decided that the mother was under a duty to request that the super be paid to the estate (where it would have to be shared with the late son’s father, who was estranged from the mother). This meant that the mother was under a duty to act in a way which was:
• contrary to her own best interests as potential beneficiary (she would receive only half the super instead of it all);
• contrary to good tax advice (as more tax would likely be payable if the super was paid to the estate); and
• contrary to the late son’s known wishes (he wanted all the
superannuation to go to his mother).
The only way to avoid these issues with certainty is to have a valid BDBN in
place, but having a valid will also helps.
dId yOu KNOW...
We can assist you with a variety of legal matters apart from wills and estates? For example, if you are buying or selling real estate in Victoria then we can do the conveyancing for you at competitive rates.
Or if you have a company, a family trust or some other business or investment
structure then we can assist you with the legal aspects of establishing or maintaining that business structure.
Phil Lambourne
IPrincipal LawyerDirect: 03 9322 2009 Mobile: 0401 523 401 Fax Direct: 03 8327 8250 Reception: 1300 131 809
bg.pdf 1 3/09/14 1:53 PM
Interest rates:
New Cars
7.90%
Used Cars (not older than 3 years)
8.90%
Used Cars (older than 3 years) 9.90%
Criteria:
• We can lend up to 100% of purchase price.
• We will require proof of purchase or ownership (if refinancing).
• Application will be assessed under our normal lending criteria
and within the NCCP Act.
• Funds will be paid directly to seller. (Bank cheque or credited to
dealers account, if requested on letterhead).
• May be approved for these loans in addition to any existing APS
Benefits Loans.
• Vehicle must be comprehensively insured for market value
with APS Benefits being noted as an interested party. (APS
Insurance will provide a competitive quote).
• Interest rate is fixed for the term of the loan.
• Term of the loan not to exceed 5 years.
• No penalty for early repayment.
Procedure:
• Applicant applies by completing our standard four page
loan application form.
• Application to include details of Registration Number
& Vehicle Identification Number (VIN). We need either the
VIN or Chassis number to conduct a search on the Personal
Property Securities Register (PPSR).
• Applications for pre-approvals are encouraged.
• Applicant to provide latest pay slip and quote (if available).
• Loan is approved subject to verification of purchase price
and that the purchase is not listed on the PPSR.
• Once approved :
-
Contracts are drawn up.
A search of the PPSR is conducted to ensure that the
purchased vehicle is clear of any encumbrances.
• The following documents will then be forwarded to the
borrower.
Approval letter setting out terms and conditions.
Request to provide evidence of insurance.
Loan contracts.
Directions to pay (where the funds should be
forwarded).
Direct Debit Request (DDR) or Allotment Authority.
FACT SHEET
SECURED CAR LOANS
SECURED CAR LOANS.indd 1 12/09/14 2:45 PM
APS TAX & ACCOuNTINg
APS INSurANCE BrOKINg
APS PrOPErTy LOANS
5
danielle rowe
Have you heard of APS Insurance?
Danielle Rowe heads up our Insurance Broking service. Now you, our members, and your friends and families will be able to ensure you are getting value for
money from your insurance provider. We have access to a range of insurance
providers covering insurance products which include Home and Contents, Motor Vehicle, Boat /
Caravan, Landlord, Business Packs, Professional Indemnity, Public Liability, Travel, Income Protection,
Life, Disability and Trauma. When you receive your renewal notice from your current insurer, or you want
insurance cover for the first time all you need to do is call Danielle on 1300 131 809 with your current (or
updated) insurance cover to see how we can assist you.
Sam Athans
Sam Athans knows how to help people. Sam
manages our loans team and also the mortgage
broking team. Whether you may be looking at re-financing or purchasing a property (to live in or invest), let Sam help you select the right product for you without pushing you to a
particular lender.
You can contact Sam on 1300 131 809
or send him an email on s.athans@apsbs.com.au
“YOUR SUCCESS IS OUR BUSINESS”
• Do you run a business? Do you intend on starting a business?
• Would you like to know the 3 critical approaches to GROWING your business? • Is the manual entering of data restricting you?
• Do you want to make your business more profitable?
“I can’t talk to my existing business advisor.
I keep leaving messages and no-one returns my calls.” Do you feel like that?
All you or your business partner need to do is INVEST YOUR TIME. Richard Ferraro from APS Tax, Accounting & Business Services can help you.
Call Richard on 03 9322 2026
Any tax return, accounting function or business service we can provide to you, your family or friends.
TAX TIP
do your teenagers have part-time jobs? Check their payment summary to see if they hadincome tax deducted. If their
income is low but they’ve had tax deducted, they
can do a tax return and apply
APS FINANCIAL PLANNINg
6
CHANgES TO SuPEr IN rETIrEMENT –
THE CLOCK IS TICKINg!
For people entering retirement, the attainment of
the Age Pension plays a crucial role in the long
term financial future. For every dollar that can be obtained in Age Pension (or other ‘Income Support’ payments from Centrelink), this is one more dollar left in their own Superannuation fund
or investments.
From 1st January 2015, Centrelink will be changing
the Income Test for new pension applicants. Whilst
for those already in receipt of an Age Pension (or
Income Supported payment) who continue with their current arrangements, they will not see any
change.
Whilst the changes affect all new pension applications, the biggest impact will be to people with alternative income sources in retirement, such as ComSuper Pensions, part time jobs or Investment Properties. Given this includes many of our members, we have focused on this aspect of
the changes.
For many years Centrelink has determined eligibility based upon the Assets Test (the value of what you
have) and the Income Test (the income received
from your assets). Whilst the Asset Test will remain unchanged, the Income Test for Superannuation Pensions (known as ‘Account Based Pensions’ or ‘Allocated Pensions’) is changing on 1st January
2015. In very simple terms, at present Centrelink doesn’t count all of the Superannuation Pension for
the Income Test. From 1st January, this exemption is
disappearing to be replaced by deeming.
Rather than a very lengthy and technical explanation, let’s examine the impacts of this change for a typical client, John who is still working and plans to retire in early 2015:
John’s age prior to 31 December 65
Current Salary $50,000
Current Super $300,000*
Other Income
(eg. ComSuper lifetime Pension)# $18,000
*upon retirement, John would like to start a pension of $20,000 per
year from this Super fund. #fully untaxed pension.
So what would John’s Age Pension be?
If John retires
prior to 31st December $501.26 per fortnight*
If John retires
after 1st January $385.20 per fortnight*
*these calculations assume John is single, has $50,000 in personal
assets, $5,000 in the bank and owns his own home.
It is important to note that this difference will continue throughout John’s retirement. So the questions John should ask?
• What is the real long term benefit of working
beyond 1st January 2015 if I am already 65?
• Could I work part time to enable me to start claiming an Age Pension, even if this is only $1 per fortnight, prior to 1st January 2015?
ArE THErE ANy TrAPS?
Like many rule changes, there are unseen implications that may not be felt for some time and not always by all clients. Let’s refer to John once again: John decided to retire prior to 31st
December 2015 and has enjoyed the high pension for some years. John has recently reviewed his superannuation fund and would like to move to an alternative fund. John researches the options, moves the funds and is pleased with his decision. After notifying Centrelink of the change, he is surprised to learn that he is now captured under the new rules and will have his pension reduced by $3,017 per year.
This point highlights the need to carefully select
a superannuation fund that can provide flexible options and changes within the fund without the need to close the account or re-open a new account. Whilst John thought this was only a small change, with no impact to his overall financial position, the reduction in Centrelink pension will be
felt for the rest of his life.
WHAT TO dO?
For most current Age Pension recipients there is no impact to this change if you retain your current
Pension account. However if you are considering changes, planning for retirement in the coming months, or are still working over the age of 65, then
further consideration of these changes is important.
APS FINANCIAL PLANNINg
Centrelink, Superannuation and retirement
planning can often be confusing, stressful and time consuming. This is where APS Financial Planning can help. These strategies are how we already assist our clients, be it a once-off assistance or regular ongoing help. If you would like to discuss how we can assist further, please don’t hesitate to
contact us.
DISCLAIMEr This document has been produced by APS Financial Planning, an authorised representative of Patron Financial Advice, AFS
Licence No. 307379. The advice provided in this document is General Advice Only. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this advice you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs. If any products are detailed on this document, you should obtain a Product Disclosure Statement relating to the products and consider its contents before making any decisions.
Timothy Foster
Certified Financial Planner TM
APS Financial Planning Pty Ltd Authorised Representative No 303995 of Patron Financial Advice
bg.pdf 1 27/08/14 2:48 PM
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uNdErSTANd CrEdIT CArd dEBT
So who would you guess has the most credit card debt in Australia? People who earn less
than $35,000 or those who earn more than $70,000 per year? You may be surprised to know that it is people who earn more than $70,000 per year. Those who are managers and degree qualified are most likely to carry $5,000 or more in credit card debt, compared to the general population. If these people make only the minimum repayment on a $5,000 credit card debt, it will take them 30 years to pay off the debt. That’s the length of your average
home loan!
Whatever you owe on your credit card you need a plan to pay it off. If you don’t you’ll be paying thousands of dollars in interest. The interest rate on credit cards is often higher than it is on other types of credit like loans.
Plan a budget
Before you even start sorting out your credit card debt you should look at doing a budget to see how much money you can spare each month to put towards your credit card debts.
HANdLE yOur CrEdIT CArd dEBT
Extra repayments
After completing a budget take the figure you think you can spare to pay off your credit cards and you will be able to see how much quicker you’ll pay off your card and how much money you’ll save. Even a small extra amount will make a difference.
do it!
Check your credit card statement every time it comes in and commit this money to it. You might need to set up a direct debit to make this happen. Make sure you DO IT.
High Interest rates Cripple you. Look for a better deal
If you are paying high interest on your credit card (or credit cards), you should look for a better deal. It may be a balance transfer that sets you on the right path. Just make sure that the interest you’ll be
paying after the honeymoon period is not higher than the interest
you are currently paying or you might be back to where you
started ...
Start building wealth with your savings
Use the money saved in credit card interest to invest in building wealth in the future.
CrEdIT CArd dEBT &
CHILdrEN’S FuNErAL BENEFIT
As a result of the increasing number of requests by members
and potential members over recent times, we now offer a
Children’s Funeral Benefit
.
The Children’s Funeral Benefit will provide peace of mind to
families at a very low cost. For only $1.50 per fortnight ($39 p.a.)
each dependent child will receive a $7,000 funeral benefit.
For details please refer to the Membership Information and
Membership Rewards Brochure in the Downloads section of
our website or call us on
1300 131 809.
D E C E A S E D M E M B E R S 2 0 1 3 - 2 0 1 4
Those who have departed us
SURNAME INITIALS AGE DEPARTMENT STATEAlleyne L M 49 Centrelink Vic
Andrews G J 60 Army Qld
Armstrong W T 82 Telecom Vic
Barns G H 86 PMG Vic
Barrington W E 82 PMG Vic
Barrow I C 67 Dept Air Vic
Basri N M 83 Dept Supply Vic
Berry G E 84 Dept Housing Vic
Bowden G J 70 Telecom Vic
Bowdern J B 85 PMG Vic
Bradley D P 95 PMG Vic
Bradshaw B B 74 Dept Defence NSW
Branagan R P 67 Spouse Vic
Brentnall R H 86 PMG Vic
Brocchi P I 85 TAA Vic
Brown R K 76 RAAF Vic
Bryan W J 86 Army Qld
Bryant R W 80 RAAF SA
Buba M A 64 Spouse NT
Bulock G R 77 Army WA
Butler G J 68 Army SA
Carlton R B 89 Dept Labour Vic
Carroll K J 83 Army Vic
Carroll T J 71 Health ACT
Carter S W 91 PMG Tas
Cathro R 71 Dept Air Qld
Chandler K M 84 PMG Vic
Chivers A B 77 PMG Vic
Coad W S 83 PMG Vic
Coker A G 86 Civil Aviation Tas
Collins J B 81 PMG Vic
Connelly B J 68 Telecom Vic
Conway C P 42 Army Tas
Cooper J W 75 RAAF Qld
Cooper R J 71 PMG Vic
Cousins R P 77 Dept Treasury SA
Cross A R 87 Dept Territories NT
Cross K H 93 Civil Aviation Qld
Crowhurst G A 80 PMG Vic
Culhane J J 90 Telecom Qld
Cullano R 65 Aust Post NSW
Cummings T J 81 RAAF Vic
Curren H 67 Spouse Vic
Cutter G B 63 Army Qld
Davis C J 81 PMG Vic
Davis J W 86 PMG Vic
Davis P L 46 RAAF Qld
De Angelis G 59 Legal Aid Vic
Denning J 55 Aust Post NSW
Denning R J 68 RAAF Vic
Dobson R A 61 Dept Defence Vic
Donald G 76 RAAF WA
Donnelly J R 77 Dept Defence Vic
Dower K 80 Telecom Vic
Dunn W J 88 PMG Vic
Edwards D G 64 Army Vic
Edwards J D 88 CSIRO Vic
Edwards R 82 Dept Defence SA
Edwards R J 67 Dept Employment Vic
Erwin T G 85 Auditors Dept Vic
Evans M M 76 PMG Vic
Farrow K E 68 RAAF Qld
Field S G 92 Dept Defence Vic
Finlay M S 84 PMG Vic
Fitridge H B 87 Electoral Office Vic
Foley L 80 ATO Vic
Forster W T 87 Supply Vic
Friend W R 92 Auditor Gen. Vic
Gale F C 73 PMG NSW
Gavlik M 51 Dept Navy NSW
SURNAME INITIALS AGE DEPARTMENT STATE
Gear R A 54 Dept Defence NSW
Gilmour L 85 Spouse ACT
Gowing J F 90 Dept Navy ACT
Greenacre R E 69 RAAF NSW
Grimwood R P 85 PMG Vic
Haines A W 88 PMG Vic
Hall M A 75 Spouse Vic
Hamilton M G 80 PMG Vic
Hammond H G 87 Telecom Vic
Harbord R F 90 PMG SA
Harris D E 72 Army Qld
Harris R J 65 PMG Tas
Harrison G K 91 PMG Vic
Harvey R H 88 ABC Tas
Hawthorn D A 52 Dept Transport Qld
Haynes A E 85 Navy Vic
Heasly B 82 ATO Vic
Heath K J 98 PMG Vic
Hecker A J 74 Army Qld
Hickey B T 83 PMG Vic
Hogan K B 93 Navy Vic
Hudson S E 84 PMG Vic
Hurle J F 91 PMG Tas
Illia T 64 PMG Vic
Ireland G 47 Army Vic
Jarmyn D W 80 Dept Defence Vic
Jarvis A D 89 RAAF Qld Johns A L 40 Spouse NSW Johnston G T 88 PMG Vic Jones K J 87 PMG Vic Jones W J 68 PMG Vic Judd J F 62 Spouse Qld Kahler J 91 PMG Qld Keith W J 56 Army Qld
Kemp W J 79 Customs Vic
Kennedy N J 59 RAAF Qld
Kiley R G 74 PMG NSW
Kociszewski L A 61 Spouse NSW
Kropf H H E 100 TAA Tas
Liddle B H 72 Spouse Qld
Little R A 81 RAAF Vic
Lovelace J 76 Spouse Vic
Lucchinelli R E 93 Treasury Vic
Maartensz T M 82 Dept Air Vic
MacKenzie J M 91 Cicil Aviation ACT
Maguire T C 88 PMG Vic
Mahar P G 66 Telecom Tas
Maher K J 70 RAAF Vic
Mainsbridge R 92 Spouse Tas
Malixi T 59 Aust Post NSW
Mallaroy N J 81 Army NSW
Marmont A E 84 RAAF Qld
Matthews A J 88 Treasury Vic
McCarthy B D 87 Social Services Vic
McCormac M G 93 Army NSW
McCormack P J 71 Spouse Tas
McCrae T S 88 PMG Vic
McDermott D G 82 PMG Tas
McEwan G A 52 RAAF ACT
McGuire L J 87 TAA Tas
McKerrow G 64 PMG Vic
McOwan B N 90 PMG Vic
McQuillan I D 54 Army Vic
Mellowship R B 59 Army Vic
Merkel R P 73 PMG Vic
Miles B M 65 Communities ACT
Mills J R 79 ACT Electricity ACT
Minehan W M 85 PMG Vic
Moore G 64 PMG Vic
Morris R L 81 Telecom Vic
SURNAME INITIALS AGE DEPARTMENT STATE
Murphy C J 85 PMG Vic
Murphy F A 84 Dept Productivity Vic
Murray J 42 Spouse Vic
Neale J B S 51 RAAF Qld
Needham S J 67 RAAF Vic
Nicoll R J 71 Dept Defence Vic
Norris K A 93 Navy Vic
Noyaux G P 87 PMG Vic
Nugent P 89 ATO Vic
O'Brien E P 89 Dept Interior ACT
O'Brien H J 90 PMG SA
O'Connor C-A 55 Spouse NSW
O'Shaughnessy B L 91 PMG Vic
Patterson V C 88 PMG Vic
Pearce A 92 Army Vic
Peck S K 68 Spouse Qld
Perrot A C 77 Telecom Vic
Perrott M A 92 PMG NSW
Petty J B 88 ATO Vic
Phillips J C 77 RAAF WA
Plant C M 73 Spouse Vic
Redman A G 83 RAAF Vic
Reynolds A 72 RAAF Vic
Richardson F H 81 Dept Housing Vic
Richardson J C 48 Army Vic
Roach L M 88 Dept Air ACT
Robertson P M 48 Army SA
Robins G W 80 PMG Vic
Rogers K V 80 PMG Vic
Ryan K M 92 Spouse Vic
Sanderson I A 73 Telstra Vic
Sandow M L 74 RAAF NSW
Schultz R G 93 PMG Qld
Schultze H F 83 Immigration ACT
Searle L H 91 Spouse Vic
Sheenan F B 93 PMG Vic
Shepherd D E 84 PMG Vic
Sinclair J K 85 PMG Vic
Smeaton R M 75 Dept Navy ACT
Smith F J 93 PMG ACT
Spooner K A 38 Spouse NSW
Steele H A 67 RAAF ACT
Stevens R D 75 PMG Vic
Stone R T 80 TAA Tas
Strongman D F 81 PMG Vic
Stuart B G 66 Urban Services ACT
Stubbs R R 89 Dept SS ACT
Taylor J G 73 PMG Vic
Taylor R G 68 Dep Transport NT
Teichel R 60 RAAF Qld
Thaw K W 90 PMG Vic
Thomas H W R 72 PMG Tas
Thompson G D 70 DFRDB ACT
Thompson L A 75 Dept Navy ACT
Thorpe J F 64 Centrelink ACT
Timms B H 87 PMG Vic
Tongue R F 72 Telecom Vic
Treble J J 90 PMG Vic
Warden P J 68 ATO Vic
Warren E J 74 PMG Vic
Watson R J 58 RAAF Qld
Watt K R 77 PMG Tas
White R J 76 Army Vic
Wilson R 75 Customs Vic
Wood R 88 PMG Vic
Worrall U E 86 Spouse Vic
Youngson S V 92 RAAF Vic
Yurisich S G 77 Spouse Vic
Our thoughts are with their families and friends
deceased members 2013-2014.indd 1 13/08/14 5:14 PM
