In the Super menu you can view your client's amalgamated superannuation balances into one single value to help model strategies around building wealth into retirement. You can locate the Super section by navigating to Modelling > Cashflow and Capital > Super.
Here you can manage contributions and other transactions, set balances, returns, other rates, and manage contribution transfer caps.
From the home screen you will be able to view both your Client and Partners superannuation accounts by clicking on the member you wish to view. The deep blue bar will indicate which member you currently have selected, in the screenshot below you can see that we are currently looking at Popeye's account.
As with other areas of Cashflow & Capital, you have two buttons available on this menu that allow you to make changes to the account; these are the Pencil (edit) icon and the Transaction button.
Depending on the account you have selected, you will also see a graph on the right and a table below with all relevant transactions.
Pencil (edit) icon
While the main page of Super allows you to make minor adjustments to the super account (balance & contributions) ideally you will want to utilise the pencil icon as it will allow you to make changes to your selected superannuation account.
When you click on the pencil icon, the below popup will appear on your screen with a number of changes that can be made.
1. General Settings
There are a number of general settings for the super account you are able to change in this section.
- You can update the name and balance of the account.
- You can also determine the expected return of the account. By default it will select the Risk Profile relevant to your client, however this can be changed to another risk profile or portfolio return or you can select override which will give you the ability to determine a growth and income return rate.
- You can set any annual fees charged on the account as either a $ or % amount
- The assumed super guarantee rate for your client
- When ticked, use maximum super contribution base is used to cap employer SG to the max cap rate as per legislation. Unticking this will allow amounts of SG higher than this cap
- When ticked, use cap on regular CC contributions will prevent you from contributing more than the allowed regular concessional amount, while unticking this will allow the modelling to add amounts higher.
- When ticked, use cap on super guarantee will prevent SG amounts from going above the concessional rate, unticking will allow it to go above the concessional rate.
Note that use maximum super contribution base and use cap on super guarantee can have an impact on one another depending on whether they are ticked or unticked.
- When ticked, SG salary will set the SG amounts based on your clients salary. If you untick this, it will appear as manual. You can then navigate to the specific super account > transactions and there will be a specific transaction that allows you to manually set SG rates per year, with an indexation and start/end year.
- Use cap on regular NCC contributions is similar to the CC setting, which will cap your NCC amounts per year as per legilsation if ticked.
- If ticked, include untaxed calculations will create additional fields that will allow you to set untaxed amounts, tax on withdrawals and potential tax on rollovers
2. Defined Benefits
This section of Edit Super will allow you to incorporate a defined benefit into super modelling.
This will be useful if you wish to roll a lump sum amount from a defined benefit into your super account at a certain point.
Note that if you wish to model a fixed defined benefit pension, please navigate to the user guide found within Income and Expenses. This section should only be used for lump sum balances into super.
You can use these fields to model a rollover amount, determining the concessional cap and unfunded amounts. The defined benefit rollover date will be the date the funds rollover into your super account (not rollover into a pension account).
3. Super info
The super info link allows you access to all relevant legilsation surrounding superannuation accounts. Midwinter ensures these are regularly updated to reflect the most recent changes to the super environment.
It includes information on transfer caps, catch up contributions. FDS, downsizing, contribution caps & the bring forward rules.
4. Additional settings
There are a number of additional settings you can change for the super account.
- You can select to ignore catchup concessional limits by ticking this field, unticking will include the available catch up amounts in the modelling
- Set up concessional contribution splitting or superannuation guarantee splitting recommendations.
Note that the values you set for splitting will be directed into the partners account (ie be deducted from the account you are working on). You will need to change super accounts if you want the splitting to be received by the account you are working on.
- You can determine the current transfer balance cap, balance and used amount, which will impact the amount that can be rolled into a super account
- Incorporate advice for a First Home Super Saver withdrawal at a specific date and amount
- Include a downsizer contribution as part of the advice.
The downsizer contribution will not impact non-concessional caps and will be added to the account as an additional NCC. It is important to understand that the funds for a downsizer contribution are taken from the cash account, meaning you will need to ensure an influx of funds are added to the cash account to account for this.
The transactions section of Super allows you to manage all money in and out of your super account.
The popup follows the same logic for each of the transaction types
- Select transaction allows you to determine which type of transaction you wish to create
- Here is a number of assumptions for the transaction. Filling the value ($) will automatically set this amount for every subsequent year as determined by the start and end date
- Often you will find important information describing the transaction type, make sure to keep an eye out for this information.
- You can choose to set values for specific years, or select show months to choose a specific month for a transaction. If you select year, it will automatically distribute the value evenly over 12 monthly amounts.
1. Concessional Contributions
Concessional contributions can be managed in three locations.
- Regular concessional contribution - any amounts here will come from cashflow (ie your clients income).
- Concessional (bank account) - any amounts here will come from the default cash account within the modelling, having a direct impact on the balance of this account.
- While not technically a concessional contribution, the SG salary field is available if you selected 'manual' within the edit section (see general settings above). This allows you to manually set any SG rates for your client.
Note due to the tax nature of concessional contributions, you cannot use these transactions to make withdrawals
2. Non-Concessional Contributions & Withdrawals
The next two fields can be used for non-concessional contributions, whilst one of the fields can also be used to make withdrawals from your super account.
- Regular non-concessional contribution - similar to CCs, amounts here will come from the clients cashflow (ie income) and because of this can only be positive amounts
- Non-concessional/withdrawal (bank account) - this field allows you to either add or remove funds from the super balance using either positive (contribution) or negative (withdrawal) values. The funds for these transactions will either come from, or be direct to, the default cash account. This means they will directly impact the balance of this account.
Note you can make both $ and % based withdrawals from the account, however % based withdrawals must be done on a specific month and cannot be set annually. This is due to the annual amounts being averaged over the 12 monthly periods. For example, a -60% value will indicate that 60% of the balance will be withdrawn from the account that month.
3. Spouse Contribution
This will set a spouse contribution amount from the client into their partners superannuation account, coming from cashflow.
4. Fees / Premiums / Deductions
The following three options allow you to include any additonal costs to your super account.
- Insurance premiums - Amounts will be taken from the super balance, set at a $ amount and only positive values
- Deductible costs & Book deductions - Amounts will be taken from the super balance. For monthly transactions, these can be both $ and % based.