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Kaplan SRP May 2010

Discussion in 'Financial Planning Study Group' started by kylie13, 9th Aug, 2010.

  1. kylie13

    kylie13 Member

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    Hi

    Anyone out there doing this assignment or have done it! I'm starting it now have done the other 3 still waiting for mark on IP1. It looks harder than IP! Any assistance would be appreciated. or someone to discuss with.

    Thanks :confused:
     
  2. kylie13

    kylie13 Member

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    Just passed the IP1 first go thank GOD!
     
  3. llanfachreth

    llanfachreth Member

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    Hi
    Yeah I'm doing it too, but since it's my last module I've totally run out of steam...
     
  4. HOCFP

    HOCFP Active Member

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    hi i need help with IP question 4 regarding how to work out the IRR.
     
  5. kylie13

    kylie13 Member

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    Hi
    The formula is on page 7.13. It is easier to get the answer on a claculator rather than trial and error, as the book suggests. Show the formula in the assignment. To get the answer on a calculator refer to page 2.22. Hope this helps. Good Luck with it.
     
  6. kylie13

    kylie13 Member

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    Disregard the above comment............I have just passed SRP first go! :D
     
  7. llanfachreth

    llanfachreth Member

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    With regards Question 1 (b), looking at the tax implications of Michael's options. 100% of this payment is included in assessable income and taxed at marginal tax rates + Medicare
    - does this include all payments added together on top of salary? i.e. annual leave, long service leave and ETP? or do you work each one on a case by case basis?

    His salary is $68k, if all payments are added his MTR is then 38% + medicare.
    If one is added at a time, it would be 30%?
     
  8. balmy nights

    balmy nights Member

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    I have just gone back to my workings for SRP, and I added the leave payments to Micheals $68000 pa to get the overall tax payable.

    I have passed that Assignment, so I assume my calcs were correct.

    Hope this helps

    ETP is taxed seperately
     
    Last edited by a moderator: 5th Sep, 2010
  9. llanfachreth

    llanfachreth Member

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    Hi
    Sorry, what do you mean ETP is calculated separately?
    Thanks
     
  10. balmy nights

    balmy nights Member

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    annual leave and long service leave are taxed at marginal rates i.e. addded on to the salary and calcutaled

    ETP is calculated at 15% if I remember rightly

    Hope this helps
     
  11. llanfachreth

    llanfachreth Member

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    I get you now.
    Cheers
     
  12. llanfachreth

    llanfachreth Member

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    Super Transfer

    Does anybody know anything about Super transfer between spouses, i.e. transferring the balance and not just last year's contribution.

    It mentions it in the notes but says very little about it.
    I've googled it but no luck

    Thanks
     
  13. balmy nights

    balmy nights Member

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    what case study are you doing?

    My understanding is as long as the spuse doing the transferring is currently a tax payer they can transfer up to $150k before any tax implications. although I am talking in aus dollars, I notice you are in the uk, is the legislation any different over there????
     
  14. llanfachreth

    llanfachreth Member

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    Thanks, that's what I thought, just doesn't say much about it in the notes.
    I'm doing the May 2010 SRP.

    Yes legislation is slightly different over here we don't really have offsets etc. Not a huge difference overall though. Don't really need to do a tax return either.

    I'm moving over there in a few weeks, just need to get this diploma done before i leave!
     
  15. llanfachreth

    llanfachreth Member

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    Marginal Tax Rate

    If my income is $35,000, my MTR is 15%

    If i also have interest and dividend income on top of this of lets say $5,000, is my MTR then 30%?
     
  16. Kellie

    Kellie Member

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    Help! I'm stuck on Q5b). I'm not sure if I'm on the right track.
    I need to resubmit my Q1, 5 & 6 I can't believe I have done so bad =(

    For Q5b) I assume the strategy to use is use the money in Michael's super to purchase an allocated pension in order to minimise income test?

    I can't think of another strategy, in my 1st submission i put down term allocated pension and term annumity but I've received my comment that they are no longer eligible in 2010 so they are invaid =(

    Also with Q1, is the answer something similar to :

    Total Tax payable on employer payment = $ 8,500 + $ 1,275 = $ 9,775 ?

    Net payment to be received = ($68,000 + $22,500) - $ 9,775 = $ 80,725 ?


    Any help would be so much appreciated !! So lost !
     
  17. michelle_191285

    michelle_191285 New Member

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    SRP Q1 - Superannuation options

    Hi, I am just starting the SRP assignment may 2010 and am unsure of how much detail is appropriate for his options at retirement for his superannuation? My answer so far is:

    Superannuation:
    I have assumed that Michael’s taxable component is from a 100% taxed element.

    a)Michael’s $135,500 super balance is made up the following components:
    20% tax free - $27,100
    80% taxable - $108,400

    As Michael is over age 60 he is able to access the both the tax free and the taxable component tax free.

    When Michael retires he has two options regarding his superannuation:
    1.Lump Sum withdrawal
    2.Establish a retirement income stream. – This option has various options within:

    I.Michael could establish an account based income stream (formally known as Allocated pensions and annuities)
    II.Michael could establish a non-account based income stream such as:

    a. A Term certain annuity
    b. A Lifetime annuity


    b) Income and capital gains on assets used to provide a pension to the member(s) of the fund is treated as exempt income and therefore tax free.

    If Michael were withdraw his entire superannuation balance upon retirement and invest outside the superannuation environment he would be required to declare and pay tax on any income and capital gains generated from those assets.[/I]

    With regard to the other payments, i calculated the tax as follows:

    Annual Leave - $5,400 x 38.5% (including Medicare Levy) = $2,079
    Long service leave -$8,600 x 38.5% (including Medicare Levy) = $3,311
    ETP -$8,500 x 15% = $1,275

    Thanks in advance
     
  18. ovywasef

    ovywasef Member

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    Hey Michelle

    I just started the assignment. Shouldnt the taxable component be taxed at 15%?
     
  19. ovywasef

    ovywasef Member

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    oke my bad! disregard my previous comment!
     
  20. scoffa

    scoffa Member

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    Ive also just started SRP, shouldnt Michael Annual Leave & Long Service Leave payments be taxed at 30% based on his MTR and also an additional 1.5% for medicare levy. While the ETP should be taxed at 15%.