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Andrew from Vista Financial

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Andrew from Vista Financial last won the day on January 20 2017

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About Andrew from Vista Financial

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    Financial (Pensions) Adviser

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  1. Andrew from Vista Financial

    Private pension

    Hi Adele If you are referring to transferring your NHS benefits as a transferrable lump sum to an Australian Superannuation Fund then as rammygirl mentions this is no longer possible (from April 2015) I'm afraid. Regards Andy
  2. Legislation, namely the Treasury Laws Amendment (Enhancing Superannuation Outcomes for Australians and Helping Australian Businesses Invest) Bill 2021, has been introduced into Parliament to implement important superannuation changes announced in the 2021 Federal Budget, although we can’t act on these changes with certainty until they become law. Date of effect The Bill provides a commencement date of 1 July 2022 for the measures provided the legislation passes before this date. Regulations associated with the Superannuation and Tax Acts will also need to be amended. Removal of the work test The work test (or the requirement for the work test exemption) will be removed for individuals aged 67 and over making nonconcessional and salary sacrifice contributions. Current rules requiring contributions to be received by the fund no later than 28 days after the month in which the client turns 75 will still apply. Personal tax-deductible contributions are not included in this measure. Those over 67 wanting to claim a tax deduction for their personal contributions will still need to meet the work test (or work test exemption). This will be achieved by placing additional criteria on members when applying for the deduction (likely via the Notice of Intent form). Age to access bring forward rules increased The eligibility age to utilise the non-concessional bring-forward rule will increase from under 67 to under 75 on the 1 July in the year of contribution. This change will provide many opportunities for clients looking to boost their super, even after retirement. The Explanatory Memorandum does warn that it’s not the intention of the legislation to allow individuals approaching age 75 to bring forward non-concessional contributions for future years where they would have otherwise not been eligible to contribute based on their age. It is still unclear what mechanism will be used to support the Government ‘s intention as it is not specifically addressed in the draft legislation. Care will need to be taken when recommending non-concessional contributions to clients approaching 75. Standard eligibility criteria for non-concessional contributions still apply including the total super balance restrictions, whether the bring forward rules have been triggered in the previous two years and the non-concessional contribution caps.
  3. Andrew from Vista Financial

    The Brand New PIO Parents Visa thread

    Hello I do specialise in this area and literally deal in this space daily, that said I do and will at times be unable to assist in providing Advice (and implementing a transfer) if I feel that our professional fees (these vary case by case as some cases are not as complex as others) against the value of the pot and or we might add outweighs the value. Feel free to reach out to me by email andrew@vistafs.com.au if you wish to explaore further. Regards Andy
  4. Andrew from Vista Financial

    How much do you need to retire in Australia in 2021?

    I thought you were asking for a friend
  5. The chairman of the British Pensions in Australia (BPiA) organisation, James (“Jim”) Tilley has died in Sydney. He was 83. He will be remembered as a fiercely committed champion of British expats penalised by the UK’s frozen pensions policy. Full story here: https://www.smh.com.au/national/champion-of-british-expats-battled-for-improved-pensions-rights-20210823-p58l3c.html I know that although unsuccesful in his bid he has helped many UK expats understand their entitlements and make top up payments if appropriate. RIP Jim.
  6. Andrew from Vista Financial

    How much do you need to retire in Australia in 2021?

    Yes it does obviously depend on a lot of things however this is a very good guide, it is updated for each previous quarter and has a detailed budget breakdown available too (as well as covering for a modest or comfortable retirement): https://www.superannuation.asn.au/resources/retirement-standard But the figures you have suggested are not too far away and from my experience the $62,828 for a couple (table below) is pretty close for most, for my higher net worth clients they might target $80,000 - $100,000 but this would tend to be because of their travel intentions. For a lot of clients we will target a tapered income as it's earlier on in retirement that most of the travelling is done. Budgets for various households and living standards for those aged around 65 (March quarter 2021, national) Modest lifestyle Comfortable lifestyle Single Couple Single Couple Total per year $28,254 $40,829 $44,412 $62,828
  7. Andrew from Vista Financial

    What Vista Financial Services can do for you

    Hi Marisa This is an old post and was brought back to life yesterday by a spammer (now deleted), however yes currently as far as I know there is only one public offer Super Fund that is a (Q)ROPS meaning that it is able to accept UK Pension Transfers
  8. Andrew from Vista Financial

    Transfer UK private pension to Australia

    Hi I believe that there is a requirement for a certain amount of posts before being able to PM but not sure what that number is. Anyhoo, you are able to reach me on Andrew@vistafs.com.au :)
  9. Andrew from Vista Financial

    Transfer UK private pension to Australia

    P.S Non Australian Advisers may work on commissions and in a lot of cases these will not be fully disclosed and can be very high which is a terrible practice (ultimately commissions result in higher product fees which then directly erode your money), therefore best bet is to work with either an Australian (ASIC) or UK (FCA) regulated Adviser.
  10. Andrew from Vista Financial

    Transfer UK private pension to Australia

    Hello 1) Yes this would vary from person to person, it may or may not. 2) Yes UK rules permit access from age 55 on private pensions and yes for perm residents/citizens this is assessed in Australia for tax. 3) Licensed Australian Financial planners work on an agreed fee (not commission) for Advice and if a transfer is recommended a further agreed fee (not commission) for them to implement. Typically the fee can be deducted from the transferred funds if a transfer occurs, if a transfer is not recommended or a better alternative strategy exists (Ken above touched on a potential one) then the Advice fee may need to be paid directly or deducted from a different super fund if the strategy involves contributions to it. Hope this helps. Andy
  11. Australians will be better off under the Federal Government’s Your Future, Your Super (YFYS) reform package which could result in higher superannuation returns and lower fees, experts say. But views are mixed on whether a performance test will be enough to identify underperforming funds. Performance test call out underperforming funds The central plank of the reforms, passed by federal parliament earlier this month, requires MySuper products to be subject to an annual performance test which assesses the actual performance of a fund, net of fees and taxes starting from 1 July 2021. If you haven’t chosen a super fund, your employer must pay your super into a MySuper fund. Each year, the Australian Prudential Regulation Authority (APRA) will construct an individual benchmark for every MySuper product. When a fund fails the performance test, it will be required to tell super members and refer them to a new YourSuper comparison tool that can help members “select a better performing fund”. Persistently underperforming products will be prevented from taking on new members. The test will extend to non-MySuper funds from July 2022. Emanuel Datt, chief investment officer of Datt Capital, believes the performance test is adequate to alert consumers to underperformers. “Superannuation is an investment that should be taken seriously from a young age,” he says. “This reform will help consumers select their superannuation funds whilst also providing an incentive for trustees to act in their investors best interests to ensure their long-term success.” Drew Meredith, adviser and partner at Wattle Partners, says the test is “a very simple way to compare the performance of multiple funds in an efficient way.” “While superannuation members have ‘choice’ of fund many fail to utilise this and hence some additional oversight on the performance of this diverse array of funds makes sense.” However, Whitlam Zhang, head of research, Parametric Australia, thinks the performance test is not enough. “While it may identify some underperforming funds, it’s also vulnerable to false positives,” he says. “We agree with industry recommendations that the regulator should also consider risk-adjusted returns.” Australia’s $3.2 trillion superannuation system is the fourth largest in the world, managing the retirement savings of 16 million Australians. According to Treasury, Australian households pay $30 billion per year in superannuation fees. This is more than the $27 billion Australian households pay on their energy bills or the $12 billion they spend on water bills. The total assets in the superannuation system are projected to reach $5 trillion by 2034. Under the current system, the amount of fees that will be paid by members in 2034 would reach $45 billion, according to Treasury documents. ASFA chief executive Dr Martin Fahy says the performance test may unfairly penalise some super funds. He maintains the test should involve two stages, that is, the proposed benchmark test and, if a product does not pass that test, a second assessment as to whether the product is delivering “good member outcomes” and is likely to meet the benchmark going forward. “There can be perils when ‘automating’ decisions that should be subject to human oversight, as we saw with the Robo-debt saga,” he says. “ASIC requires us to warn consumers that past performance is not always the best indicator of future performance. Many funds may have recently reduced fees and we know that will enhance performance outcomes. This should be considered before good funds are consigned to the scrap heap.” Stapling to stop fees from accumulating From 1 July 2021, employers must not longer automatically create a new superannuation account in their chosen default fund for new employees when they do not decide on a superannuation fund. Instead, employers will need to obtain information about the employee’s existing superannuation fund from the ATO. Stopping the creation of millions of unintended multiple accounts by employers will alone boost balances in super by about $2.8 billion by avoiding duplicate fees and lost returns over the next decade, Treasury claims. Overall, Your Future, Your Super changes will save Australians $17.9 billion over 10 years. Wattle Partners’ Meredith says this is a very positive step. “The stapling of accounts is a much-needed change,” he says. “As an adviser, we regularly see younger clients with three sometimes four industry super funds where they started work in hospitality or retail and then transitioned. Whilst industry funds are low cost, their fixed admin fee is actually high for smaller balances. “This has the potential of actually getting younger works to engage with their superannuation, rather than view it as someone else’s money. This will reduce cost and duplication as well as simplify insurance coverage given the overlap that can exist where multiple accounts are held.” However, while stapling fixes the problem of multiple accounts, Parametric’s Zhang says stapling shouldn’t have started until all super funds and all options – including choice options – were subject to the performance test. “As it has ended up, members could be stapled to underperforming funds,” he says. Insurance opt-in Other Your Future, Your Super changes relate to insurance coverage, requiring that insurance is offered only on an opt-in basis by super funds for those aged under 25 years. This is so young people don’t pay for insurance they don’t need. Cbus has voiced its concerns about these reforms saying its member-base in dangerous professions could miss out on getting the insurance they need once an individual superannuation account is ‘stapled’ to a member and stays with them for life. “If the government’s ‘stapling’ proposal does commence 1 November 2021, surely hazardous workers should be made exempt until at least after the exclusions review is complete,” Cbus chief executive Justin Arter says. “Workers in hazardous occupations are at risk of being stapled to a fund containing exclusions or unfavourable [insurance] terms and conditions because their existing insurance cover has not been tailored to their new job.” Superannuation guarantee increase From 1 July 2021, the Superannuation Guarantee (SG) rate will increase from 9.5 per cent to 10 per cent. “The long-overdue increase in the Super Guarantee will go some way to address the structural imbalances that continue to occur between fat profits and flat wages,” ASFA’s Fahy says. By Nicki Bourlioufas Nicki Bourlioufas, is a Morningstar contributor. Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar.
  12. Andrew from Vista Financial

    Claiming NHS Pension

    Happy for you to buy me a pint next time you are in Adelaide!! Seriously though, glad you found my comments useful
  13. Andrew from Vista Financial

    Claiming NHS Pension

    It's fine, happy to answer questions generally, time permitting. You are right the NHS do not provide a historic transfer value however you are not looking for a historic transfer value, you are simply trying to understand what your benefits were worth ie annual pension/lump sum, when you arrived. If your time of arrival was close to when you left the NHS they do provide benefits figures for date of leaving, alternatively you may have a statement of some form showing what your annual pension was close to when you arrived (typically with the NHS the lump sum is 3x annual pension): https://www.nhsbsa.nhs.uk/sites/default/files/2018-10/Retirement Guide %28V24%29 print version - 05.2018 .pdf Failing all of that then a calculation would need to be carried out by essentially working back (or forward if you have benefits from date of leaving and this is not close to you arriving in OZ) by using the method of revaluation that applies (this would be mainly CPI/RPI (perhaps an element at a fixed rate if there is any GMP involved). If need be the ATO will give a private ruling on it, if you provide them with all of the revelant information: Applying for a private ruling | Australian Taxation Office (ato.gov.au) Regards the assessment of the growth of the lump sum, there is no special rate of tax it is simply added to marginal tax rate in the year of receipt. Hope this helps. Andy.
  14. Andrew from Vista Financial

    Claiming NHS Pension

    You are correct it is a defined benefit scheme, if you have a statement around the time you arrived in Australia that should give you the value of the lump sum.
  15. Andrew from Vista Financial

    Claiming NHS Pension

    Hello Purely from the point of view of answering you questions factually. The lump sum as rammygirl points out should not be assessed as income but rather a lump sum from a foreign super fund, see here: Lump sums from a foreign super fund | Australian Taxation Office (ato.gov.au) this broadly is generally based on the growth since a person arrives in OZ to the point of receipt of the lump sum and converted to OZ dollars at that time. Re the pension income, as Marisa points out isn't really a choice and typically Australia will have taxing rights on UK pension income for OZ residents. You have mentioned reducing taxable income by using the concessional contribution catch up rules: Concessional contributions cap | Australian Taxation Office (ato.gov.au) this certainly can be a good way for someone to reduce taxable income in certain circumstances, note also that concessional contributions do attract a 15% tax which is deducted from within the Super Fund. Regards Andy