Your guide to the EOFY Toolkit

Transcription

1 Your guide to the EOFY Toolkit 1_ Introducing the End of Financial Year Campaign Toolkit The lead up to June 30 provides a number of compelling reasons to start a conversation with your clients and help them take advantage of specific financial year-end strategies. The End of Financial Year Campaign Toolkit will help you to target your client base and outline the relevant opportunities and strategies available to assist in building their wealth before tax time. This flyer outlines the End of Financial Year Campaign Toolkit contents, how to target your client base and how to use the toolkit with your clients. 2_ End of financial year opportunities Inside the EOFY Campaign Toolkit you will find: Tools for you Presentations to use with your clients > End of year strategies and opportunities for clients > End of year strategies and opportunities for business owners > Superannuation > Transition to retirement > Insurance cover protecting your family and assets > Gearing strategies. Seminar tools > Guide to running an effective client seminar > Invitation template Client letter and templates > Editable client letters templates for letter and formats

2 Tools for your clients Tax efficiency strategies > Grow your super to save CGT Use salary sacrifice to boost your super and reduce tax > Sell a small business tax effectively Using the small business capital gains tax concessions to boost your super > Prepay interest and help manage your tax Bring forward the tax deduction on your investment loan > Transition to retirement tax effectively Use a tax-effective income from super to maintain your lifestyle Superannuation strategies > Grow your super tax effectively Use salary sacrifice to boost your super and reduce tax > Invest inside super to save tax Move assets into super for a more taxeffective retirement income > Insurance: inside or outside of super? Structuring your insurance taxeffectively Contributions and caps strategies > Access government co- Let the Government boost your retirement savings > Managing the contribution caps Making the most of the opportunities in super > Spouse super Increase their super and reduce your tax > Spouse super contribution splitting Divide your super with your spouse and increase your retirement savings > Transitional cap: Use it or lose it Taking advantage of the $50,000 concessional contribution cap SMSF strategies > Avoid the liquidity trap > Purchasing residential investment property > Purchasing business real property 2

3 3_How to target your clients Strategy Client opportunity Target market Tools to use Government co- > > Free money take advantage of Government (of up to $1,000) to the super funds of eligible investors. The Government will match after-tax dollar for dollar up to $1,000. return as early as July. > > Value demonstrate real value to your clients by providing them with a quick win. > > Pro-activity re-affirm client confidence that you re up to date with legislation and are actively looking out for their interests Salary sacrificing > > Timeliness establish salary sacrificing now so that your clients receive the full benefit in the next financial year. Investors aged over 50 can make concessional up to $50,000 each year. Those under 50 years Gearing and super Personal to super Spouse to super Risk insurance in super can currently contribute up to $25,000. > > Dual-benefit reduce your clients taxable income and increase super savings which are concessionally taxed. > > Reduce tax end of year bonuses that are yet to be announced can be sacrificed to reduce tax. > > Get ahead clients who pre-pay the interest on their gearing or investment home loan can claim a tax deduction this financial year return as early as July. > > Reduce tax clients can reduce their taxable income and use personal to offset any capital gains tax they have incurred during the year return as early as July > > Value demonstrate real value to your clients by providing them with a quick win. > > Tax-effective clients make a direct saving against their income tax liability as this is a tax offset (rather than a tax deduction). return as early as July. > > Boost savings your client increases their spouse s super savings (which are concessionally taxed). > > Reduce tax potentially reduce joint tax liability in retirement by balancing your client s and their spouse s super savings. > > Cash flow your client may experience cash flow benefits from having their life insurance cover held inside super. > > Beneficiaries certain beneficiaries may receive the death benefit as a tax effective income stream, rather than a lump sum. > > Primary target market clients earning $31,920 or less. > > Secondary target market clients earning between $31,920 and $61,920. > > Clients who are an employee of an employer offering salary sacrifice arrangements. > > Clients who already have an investment portfolio > > Clients with an interest only investment loan > > New clients wanting a tax deduction this financial year > > Any person who is currently self employed, or satisfies the 10 percent test. > > Primary target market clients with a spouse on low income (less than $13,800). > > Secondary target market is any client and spouse who have an uneven distribution of super savings. > > Clients with tax dependants > > Clients aged 35 and over > > Clients who are employed > > Flyer Access government co- to save CGT > > Flyer Prepay interest and help manage your tax > > Presentation Gearing strategies > > Flyer Managing the contribution caps tax effectively > > Presentation - Superannuation > > Flyer Spouse super > > Flyer Spouse super contribution splitting > > Flyer Insurance: inside or outside super? 3

4 3_How to target your clients Strategy Client opportunity Target market Tools to use Review income streams Small Business CGT concessions Investing inside super > > Tax effective clients over 55 can maximise their income through transition to retirement and salary sacrifice strategies. > > Potential tax savings when disposing of business asset(s) > > Ability to contribute more money into super that does not form part of the non-concessional cap. > > Maximise retirement savings clients can make the most of their retirement savings by structuring investments in super > > Clients aged and still working > > Clients with a sole income of $150k and under > > Business owners looking to retire or sell assets > > Especially clients age 55+ with active assets held more than 15 years. > > Clients aged > > Clients with a large cash balance > > Flyer Transition to retirement tax effectively to tax effectively > > Presentation Transition to retirement > > Flyer Sell a small business tax effectively > > Flyer Invest inside super to save tax > > Presentation Superannuation Maximising deductable Strategies for SMSF Strategies for SMSFs Deepen relationship with your clients > > Reduce tax If you are aged 50 and over, you can take advantage of the $50k concessional contribution cap, but only until June 2012 > > Purchasing a residential investment property with borrowed funds > > Clients aged 50 and over > > Clients who are still working > > Clients with an income of $150k and over > > Flyer Transitional cap: use it or lose it tax effectively > > Presentation - Superannuation > > Trustees of a SMSF > > Flyer Strategies for SMSFs Purchasing a residential investment property with borrowed funds > > Avoid the liquidity trap > > Trustees of a SMSF > > SMSF with borrowing > strategies inside super, or > SMSF with business property > > Identify clients where there s an opportunity to reconnect, where you can help them with savings at year end. > > Re-assess goals with long term clients. > > Clients with previous single product sales > > Self directed clients > > Long term clients. > > Flyer Avoid the liquidity trap 4

5 Targeting your clients using the Wrap DeskTop: Aside from your own client database information there are several reports available on the Wrap DeskTop that can assist in targeting your client base. Report How to find specific clients Strategies the report is useful for Contributions Summary Report Use the summary report to view a summary list or detailed report of client throughout the financial year. Total Business Summary Report Use the Total Business summary report to identify your clients who have a Geared Wrap account. Insurance Details Use the Insurance Details report to identify clients in your business who have insurance policies. Summary report of client ages and made From the Wrap DeskTop in My Business view: 1_Click on Reports >> Contributions Summary 2_Input date range and click Show Report Report will show the Investor Name and number, Age as at 1 July 2010, Contribution Type and made over the period selected. Use the summary list of clients who have made to then view a detailed summary report for each client showing concessional/non-concessional and other made. From the Wrap DeskTop in My Client view: 1_ Use the advanced client search to identify and bring up the required clients details 2_ Within the Reports tab select Contributions Summary. 3_ Input data range required, select Detailed report then click on Show Report. Report will show a breakdown of the types of made including concessional, non-concessional and others including CGT, directed termination payments, personal injury and government co-contribution. View a summary list of clients who have a Geared Wrap account: From the Wrap DeskTop in My Business view: 1_Select Reports 2_Select Total Wrap Business 3_Select No. Clients: All 4_Product type: Geared Investment 5_Wrap/Wrap Essentials: All 6_Select: Show report The report will show all clients with a geared wrap account and their total funds under advice. View a list of clients with insurance policies linked to their Wrap accounts: From the Wrap DeskTop My Business view: 1_Select Reports 2_Select Insurance Details 3_Select Policy Type: All 4_Select Policy Status: All 5_Select Product Type: All The report produces a list of all clients in your business with an insurance policy including their investor number, Policy Number, Policy Type and current status. Government co-: Refer to the Personal section in the detailed report to view made (both as a claimed/unclaimed tax deduction). You can also view whether they received a Government co-contribution in previous years. Salary sacrifice: Review the concessional fields to view employer made and discuss with your client benefits available to them. You can also view their age at a glance to further determine the specific benefits available to them. Personal tax deductions: View whether a client has claimed a tax deduction on made by referring to the Personal (tax deduction claimed) field. Spouse : Refer to the Spouse field under non-concessional to see if spouse have been made. Small business CGT concessions: Refer to the CGT small business 15 year exemption and retirement exemption sections on the report to determine made. Pre paid interest: Refer to clients who have a Geared Wrap account who may be able to pre pay interest on their margin loan. Risk insurance in super: Refer to clients who have a current policy in force who might be able to claim a tax deduction for premiums paid via their super accounts. 5

6 4_ How to use the end of year toolkit with your clients Consider using a combination of seminars, individual client meetings and personal phone calls to help ensure that you re able to connect with as many clients as possible. Step 1 Step 2 Step 3 Step 4 Step 5 Identify your top clients in your client base, based on the target market for each strategy. Start by sending a letter with the relevant flyer(s) to clients you have identified in each target market. Follow up with a phone call to discuss the opportunities invite your client in to meet face-to-face. Use the presentation to enhance your discussion with a visual explanation of the concepts. Decide whether to hold a seminar to invite prospects to discuss the issues. As part of our ongoing commitment to providing you with valuable tools and resources to help you develop your business and make life easier, we hope you find our End of Financial Year Campaign Toolkit both useful and informative for you and your clients going into the final straight for year end. For further information Visit What to do next > See your Business Development Manager > Call Wrap Adviser Relations on BT Portfolio Services Ltd ABN (BTPS) operates Wrap including Wrap Essentials (Wrap) and administers SuperWrap including SuperWrap Essentials (SuperWrap). BT Funds Management Limited ABN is the trustee and issuer of SuperWrap. Your Dealer Group may also operate a Wrap offering, otherwise its role in relation to Wrap and SuperWrap (Wrap Products) is limited to distributor only. This document has been prepared and is provided solely for the general guidance of advisers and has been prepared without taking into account any individuals objectives, financial situation or needs. The information in this publication provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such. The taxation position described is a general statement and should only be used as a guide. It does not constitute tax advice and is based on current tax laws and our interpretation. This disclaimer is subject to any contrary requirement of the law. Information current as at 1 January BT Funds Management Limited BT ao