CQUniversity Unit Profile
FINC19016 Retirement and Superannuation
Retirement and Superannuation
All details in this unit profile for FINC19016 have been officially approved by CQUniversity and represent a learning partnership between the University and you (our student).
The information will not be changed unless absolutely necessary and any change will be clearly indicated by an approved correction included in the profile.
Corrections

Unit Profile Correction added on 14-04-21

Closed book invigilated exams are replaced with open book take home exams for T1 2021. This change has the current approval of the accreditation body, Financial Adviser Services and Ethics Authority until 30 June 2021.

General Information

Overview

This unit covers the regulatory framework of superannuation and the role of financial advisor in retirement and superannuation planning. You will examine the legal and taxation issues related to long term wealth creation and the operation of superannuation funds. You will apply the skills required for managing the client relationship and construct a strategic retirement plan for a client situation.

Details

Career Level: Undergraduate
Unit Level: Level 2
Credit Points: 6
Student Contribution Band: 10
Fraction of Full-Time Student Load: 0.125

Pre-requisites or Co-requisites

Pre-requisite: FINC11001 plus Co-requisite: LAWS19033

Important note: Students enrolled in a subsequent unit who failed their pre-requisite unit, should drop the subsequent unit before the census date or within 10 working days of Fail grade notification. Students who do not drop the unit in this timeframe cannot later drop the unit without academic and financial liability. See details in the Assessment Policy and Procedure (Higher Education Coursework).

Offerings For Term 1 - 2021

Online

Attendance Requirements

All on-campus students are expected to attend scheduled classes – in some units, these classes are identified as a mandatory (pass/fail) component and attendance is compulsory. International students, on a student visa, must maintain a full time study load and meet both attendance and academic progress requirements in each study period (satisfactory attendance for International students is defined as maintaining at least an 80% attendance record).

Class and Assessment Overview

Recommended Student Time Commitment

Each 6-credit Undergraduate unit at CQUniversity requires an overall time commitment of an average of 12.5 hours of study per week, making a total of 150 hours for the unit.

Class Timetable

Bundaberg, Cairns, Emerald, Gladstone, Mackay, Rockhampton, Townsville
Adelaide, Brisbane, Melbourne, Perth, Sydney

Assessment Overview

1. Practical Assessment
Weighting: 50%
2. Examination
Weighting: 50%

Assessment Grading

This is a graded unit: your overall grade will be calculated from the marks or grades for each assessment task, based on the relative weightings shown in the table above. You must obtain an overall mark for the unit of at least 50%, or an overall grade of ‘pass’ in order to pass the unit. If any ‘pass/fail’ tasks are shown in the table above they must also be completed successfully (‘pass’ grade). You must also meet any minimum mark requirements specified for a particular assessment task, as detailed in the ‘assessment task’ section (note that in some instances, the minimum mark for a task may be greater than 50%). Consult the University’s Grades and Results Policy for more details of interim results and final grades.

Previous Student Feedback

Feedback, Recommendations and Responses

Every unit is reviewed for enhancement each year. At the most recent review, the following staff and student feedback items were identified and recommendations were made.

Feedback from Student email

Feedback

Student requested solutions as feedback on the Super FINC19016 exam.

Recommendation

Detailed feedback will be provided for each Online Open Book exam.

Feedback from Moodle Forum

Feedback

Students expressed concerns around not having access to a computer at home or if their computer or software did not work properly what are their options.

Recommendation

Recommend to students to contact CQU Student Support Services for a assistance.

Unit Learning Outcomes
On successful completion of this unit, you will be able to:
  1. Explain contemporary retirement and superannuation issues
  2. Apply taxation and legal principles to long term wealth creation
  3. Explain issues relating to self-managed superannuation funds
  4. Construct pre and post strategic retirement plans.
Alignment of Learning Outcomes, Assessment and Graduate Attributes
N/A Level
Introductory Level
Intermediate Level
Graduate Level
Professional Level
Advanced Level

Alignment of Assessment Tasks to Learning Outcomes

Assessment Tasks Learning Outcomes
1 2 3 4
1 - Practical Assessment - 50%
2 - Examination - 50%

Alignment of Graduate Attributes to Learning Outcomes

Graduate Attributes Learning Outcomes
1 2 3 4
1 - Communication
2 - Problem Solving
3 - Critical Thinking
4 - Information Literacy
5 - Team Work
6 - Information Technology Competence
7 - Cross Cultural Competence
8 - Ethical practice
9 - Social Innovation
10 - Aboriginal and Torres Strait Islander Cultures

Alignment of Assessment Tasks to Graduate Attributes

Assessment Tasks Graduate Attributes
1 2 3 4 5 6 7 8 9 10
1 - Practical Assessment - 50%
2 - Examination - 50%
Textbooks and Resources

Textbooks

Supplementary

Australian Superannuation Handbook 2020-21

Edition: 79th (2020)
Authors: Stuart C Jones
Thomson Reuters
Sydney Sydney , NSW , Australia
ISBN: 9780864697684
Binding: Paperback
Supplementary

Financial Planning: Essentials Edition

Edition: First (2021)
Authors: Warren McKeown, Marc Olynyk, John Kerry, Lisa Ciancio, Diem La
John Wiley & Sons Australia, Ltd
Milton Milton , QLD , Australia
ISBN: E-Text: 9780730385752 Textbook: 9780730385738
Binding: Other
Supplementary

Financial Planning in Australia 2019 Essentials Edition

Authors: Taylor, S
LexisNexis Butterworths
Sydney Sydney , NSW , Australia
ISBN: 9780409349047
Binding: Paperback

Additional Textbook Information

For more information and availability on Australian Superannuation Handbook 2020-21 go to https://store.tax.thomsonreuters.com.au/en/store/book/australian-superannuation-handbook-2020-21/p/42774345

For more information and availability on Financial Planning Essentials go to https://www.wileydirect.com.au/buy/financial-planning-essentials/

IT Resources

You will need access to the following IT resources:
  • CQUniversity Student Email
  • Internet
  • Unit Website (Moodle)
  • XPlan Software
Referencing Style

All submissions for this unit must use the referencing style: American Psychological Association 7th Edition (APA 7th edition)

For further information, see the Assessment Tasks.

Teaching Contacts
Angelique Mcinnes Unit Coordinator
a.mcinnes@cqu.edu.au
Schedule
Week 1 Begin Date: 08 Mar 2021

Module/Topic

Background on Superannuation in Australia

  • An introduction to superannuation considering the current superannuation environment
  • Definition of a superannuation fund
  • Concept of a superannuation fund as a trust.

Chapter

Refer to the Study Guide for a list of references supporting the learning materials.

Events and Submissions/Topic

  1. Please refer to the study guide for details of the unit
  2. For your assessment download the three files in the Assessment folder on Moodle.
  3. Start unpacking the assessment case study.
  4. Use the Q&A Forum on Moodle if you are unsure about any content and assessment issue.
  5. Complete self-study questions
Week 2 Begin Date: 15 Mar 2021

Module/Topic

Superannuation Funds and MySuper

  • Types of superannuation funds in Australia
  • Key features of these funds
  • The qualifying conditions for a complying superannuation fund
  • Key elements of the MySuper superannuation product.

Chapter

Refer to the Study Guide for a list of references supporting the learning materials.

Events and Submissions/Topic

  1. Please refer to the study guide for details of the unit
  2. For your assessment complete the sections of the SOA titled ‘Your goals and objectives’ and ‘Your risk tolerance’ sections of the SOA.
  3. Use the Q&A Forum on Moodle if you are unsure about any content and assessment issue.
  4. Complete self-study questions.
Week 3 Begin Date: 22 Mar 2021

Module/Topic

Overview & Regulation of Self-Managed Superannuation Funds (SMSFs)

  • Requirements of a self-managed superannuation fund
  • Appropriateness of starting a self-managed superannuation fund
  • Steps involved in setting up a self-managed superannuation fund
  • Regulations affecting the management of a self-managed superannuation fund
  • Advantages and disadvantages of having a self-managed superannuation fund.

Chapter

Refer to the Study Guide for a list of references supporting the learning materials.

Events and Submissions/Topic

  1. Please refer to the study guide for details of the unit
  2. For your assessment complete ‘Our Recommended Superannuation Strategies’ of the SOA by reviewing the Fact Find, the client's objectives, needs and risk tolerance and linking these to what strategy/ies you believe are achieve them.
  3. Use the Q&A Forum on Moodle if you are unsure about any content and assessment issue.
  4. Complete self-study questions.
Week 4 Begin Date: 29 Mar 2021

Module/Topic

Taxation of Superannuation Funds and Choice of Funds

  • Taxation of superannuation funds
  • Assessable income of a superannuation fund as well as amounts which will be excluded from assessable income
  • Tax deductions available for a superannuation fund
  • Tax levy points
  • Amounts constituting exempt income of a superannuation fund
  • Modifications to CGT which apply to superannuation funds
  • Choice of fund options available for members receiving employer sponsored contributions.

Chapter

Refer to the Study Guide for a list of references supporting the learning materials.

Events and Submissions/Topic

  1. Please refer to the study guide for details of the unit.
  2. For your assessment complete the ‘Our Superannuation Product Recommendations’ section of the SOA.
  3. Use the Q&A Forum on Moodle if you are unsure about any content and assessment issue.
  4. Complete self-study questions.
Week 5 Begin Date: 05 Apr 2021

Module/Topic

Superannuation Contributions including Superannuation Guarantee

  • Who can make contributions to a superannuation fund
  • Concessional and non-concessional contributions caps
  • Penalties for exceeding the contributions caps
  • Choice of fund arrangements that are available for employees.
  • Salary sacrificing arrangements
  • Superannuation Guarantee and Personal concessional contributions rules
  • Government co-contributions
  • Spouse contributions
  • Contributions to offset capital gains
  • Re-contribution strategies.

Chapter

Refer to the Study Guide for a list of references supporting the learning materials.

Events and Submissions/Topic

  1. Please refer to the study guide for details of the unit.
  2. For your assessment complete the product recommendations, also consider ‘Replacement and alternative product recommendations of the SOA.
  3. Complete self-study questions.
Vacation Week Begin Date: 12 Apr 2021

Module/Topic

Catchup and Assessment Completion

Chapter

Events and Submissions/Topic

  1. Catch up on weekly readings audio lectures and self-study questions
  2. Work on your Practical Assessment
Week 6 Begin Date: 19 Apr 2021

Module/Topic

Superannuation Investment Rules

  • Investment rules and their restrictions
  • Strategies to maximize investment earnings
  • Investment policies and objectives
  • Role of fund trustees when making investments
  • Role of investment managers
  • Rules and restrictions that apply to in-house assets
  • Strategies and restrictions if a fund wants to borrow and gear superannuation investments.
  • Arm’s length investing is and the restrictions that apply if a fund wants to lend money.
  • Rules that apply for acquiring and keeping personal assets
  • Investment performance of superannuation funds.

Chapter

Refer to the Study Guide for a list of references supporting the learning materials.

Events and Submissions/Topic

  1. Please refer to the study guide for details of the unit.
  2. For your assessment you should be at the stage of completing the ‘Replacement Product’ and ‘Recommended asset allocation’ as well as making a start on the ‘Financial outcomes of our recommended strategies’.
  3. Complete self-study questions.
Week 7 Begin Date: 26 Apr 2021

Module/Topic

Taxation of Superannuation Fund

  • How super entities are taxed
  • Clients’ tax payable
  • Clients’ assessable income and assessable contributions
  • Non-arm's length income (special income)
  • Concept no-TFN contributions income
  • Capital gains tax affecting the super funds
  • Exempt income is included in super funds and exempt current pension income
  • Tax deductions are available for super funds
  • Dividend franking credits and other offsets
  • PAYG withholding on benefit payments
  • Taxation of benefits, pensions and annuities.

Chapter

Refer to the Study Guide for a list of references supporting the learning materials.

Events and Submissions/Topic

  1. Please refer to the study guide for details of the unit
  2. For your assessment you should be at the stage of completing the Cost of our advice’ section of the SOA and start finalising the ‘Supporting information and Annexures’.
  3. Complete self-study questions.
Week 8 Begin Date: 03 May 2021

Module/Topic

Superannuation Withdrawal of Member Benefits or Payment of Benefits

  • Rules relating to superannuation benefits
  • Concept of preservation of superannuation benefits
  • Rules governing the payment of superannuation benefits
  • Different types of superannuation benefits
  • Conditions of release for superannuation benefits
  • Restriction of cashing of benefits upon serious illness.
  • Superannuation benefits transferred to another fund
  • Re-contribution strategy
  • Strategies of accessing superannuation income in retirement.

Chapter

Refer to the Study Guide for a list of references supporting the learning materials.

Events and Submissions/Topic

  1. Please refer to the study guide for details of the unit.
  2. Finalise your Statement of Advice document ready for submission in the assessment section of Moodle.
  3. Complete self-study questions.
Week 9 Begin Date: 10 May 2021

Module/Topic

Pensions and Annuities

  • Rules relating to superannuation pension and annuity benefits
  • Concept of preservation of superannuation pension and annuity benefits
  • Rules governing the payment of superannuation pension and annuity benefits
  • Conditions of release for superannuation pension and annuity benefits
  • Types of pension and annuities available
  • Minimum amount of pension and annuity income required
  • Transition to retirement strategy to boost retirement savings and income.

Chapter

Refer to the Study Guide for a list of references supporting the learning materials.

Events and Submissions/Topic

  1. Assessment is due this week
  2. Please refer to the study guide for details of the unit.
  3. Complete self-study questions
  4. Prepare for the exams

[SCALED] STATEMENT OF ADVICE Due: Week 9 Friday (14 May 2021) 11:45 pm AEST
Week 10 Begin Date: 17 May 2021

Module/Topic

Superannuation Death Benefits

  • How death benefits are paid out of a superannuation fund.
  • Role of the trustee in determining how a death benefit is paid out
  • Powers of the trustee on the death of a superannuation fund member
  • How tax is determined on a death benefit payment
  • Different tax treatment of a lump sum and pension death benefit
  • Payment of various types of death benefits
  • Tax treatment of superannuation death benefits
  • Restriction of cashing of benefits upon death.

Chapter

Refer to the Study Guide for a list of references supporting the learning materials.

Events and Submissions/Topic

  1. Please refer to the study guide for details of the unit.
  2. Complete self-study questions.
  3. Prepare for the exams.
  4. Complete the student evaluation.
Week 11 Begin Date: 24 May 2021

Module/Topic

Family Law and Superannuation

  • Divorce and superannuation
  • Splitting agreements and court orders
  • Family Court's approach to division of superannuation interests
  • Flagging agreements
  • Superannuation interests covered
  • Obtaining information from superannuation trustees
  • Tax treatment of family law superannuation payments
  • Splitting pensions and annuities
  • No tax deduction for contribution for non-member spouse
  • CGT implications
  • Splitting after death of member spouse.

Chapter

Refer to the Study Guide for a list of references supporting the learning materials.

Events and Submissions/Topic

  1. Please refer to the study guide for details of the unit.
  2. Complete self-study questions
  3. Prepare for the exams
  4. Complete the student evaluation if you have not already done so.
Week 12 Begin Date: 31 May 2021

Module/Topic

Employment Termination Payments

Exam Revision

Unit Evaluation Survey

Chapter

Refer to the Study Guide for a list of references supporting the learning materials.

Events and Submissions/Topic

  1. Please refer to the study guide for details of the unit.
  2. Complete self-study questions
  3. Prepare for the exams
  4. Complete the student evaluation if you have not already done so.
Review/Exam Week Begin Date: 07 Jun 2021

Module/Topic

All the Best for the Exams

Chapter

Events and Submissions/Topic

Exam Week Begin Date: 14 Jun 2021

Module/Topic

Chapter

Events and Submissions/Topic

Assessment Tasks

1 Practical Assessment

Assessment Title
[SCALED] STATEMENT OF ADVICE

Task Description

This is an individual assessment.

Important detailed information for your assessment is on the Moodle site.

Before you begin please read the:

  1. instructions for completing and submitting your assessment.
  2. case study background.

Task requirements:

  1. Identify the client's objectives, needs and financial situation by reviewing the case study background, fact find and risk profile information provided.
  2. If you choose to use XPlan, input this information into XPlan software so that you can model the various strategies within XPlan.
  3. Prepare a written Statement of Advice using the template provided and financial planning software [XPlan, Microsoft-Excel and/or related software] The software is available to you via Moodle.
  4. Using the analysis questions provided within the Statement of Advice template, develop and document appropriate retirement and superannuation strategies and recommendations to achieve the client's retirement goals.

We provide:

  1. Instructions document to complete the assessment with grading rubrics
  2. Completed fact find and risk profile document assumedly obtained during a meeting with the client that has already taken place.
  3. Statement of Advice template, which you must complete to be graded.
  4. Data analysis questions within the Statement of Advice to assist preparing the Statement of Advice document.

From the above task, it is clear this is a practical assessment dealing with a real world financial planning client superannuation need. Please start this assessment as soon as possible, because for some of you it will require learning numerous new skills. Learning how to use new software [for instance, XPlan] may need sometime and practice. Your unit coordinator is available via Moodle discussion forum and Q&A forum, as well as Zoom drop-in sessions mobile phone messaging.

Please refer to Moodle and download all three files relating to this Assessment requirements. Please read these documents carefully.

Email your unit coordinator directly to address any personal matters, concerns or difficulties during the term is encouraged.


Assessment Due Date

Week 9 Friday (14 May 2021) 11:45 pm AEST

Submission via Moodle


Return Date to Students

Week 11 Friday (28 May 2021)

Feedback via Moodle


Weighting
50%

Assessment Criteria

We award marks for completing a Statement of Advice (SOA) Microsoft-Word template provided covering the following sections of the SOA.

  1. Introduction (Table of Contents)
  2. Your goals and objectives
  3. Scope of your advice
  4. Your tolerance to risk
  5. Retirement funding
  6. Summary of our Advice in a Strategy Map
  7. Our Recommended Superannuation Strategies
  8. Our Superannuation Product Recommendations
  9. Replacement and alternative product recommendations included
  10. Recommended asset allocation
  11. Financial outcomes of our recommended strategies
  12. Cost of our advice
  13. Supporting information and Annexures
  14. Organisation/Structure/Presentation/Mechanics
  15. Sources/Evidence

Find in the Assessment Instruction File in Moodle a comprehensive marking criteria sheet covering grade


Referencing Style

Submission
Online

Submission Instructions
Your assessment 1 comprise a single Microsoft-word file as per the Assessment Criteria List above that is to be uploaded and submitted via Moodle.

Learning Outcomes Assessed
  • Explain contemporary retirement and superannuation issues
  • Apply taxation and legal principles to long term wealth creation
  • Explain issues relating to self-managed superannuation funds


Graduate Attributes
  • Communication
  • Problem Solving
  • Critical Thinking
  • Information Literacy
  • Team Work
  • Information Technology Competence
  • Cross Cultural Competence
  • Ethical practice

Examination

Outline
Complete an invigilated examination

Date
During the examination period at a CQUniversity examination centre

Weighting
50%

Length
180 minutes

Exam Conditions
Closed Book

Materials
Calculator - all non-communicable calculators, including scientific, programmable and graphics calculators are authorised
Dictionary - non-electronic, concise, direct translation only (dictionary must not contain any notes or comments).
Academic Integrity Statement

As a CQUniversity student you are expected to act honestly in all aspects of your academic work.

Any assessable work undertaken or submitted for review or assessment must be your own work. Assessable work is any type of work you do to meet the assessment requirements in the unit, including draft work submitted for review and feedback and final work to be assessed.

When you use the ideas, words or data of others in your assessment, you must thoroughly and clearly acknowledge the source of this information by using the correct referencing style for your unit. Using others’ work without proper acknowledgement may be considered a form of intellectual dishonesty.

Participating honestly, respectfully, responsibly, and fairly in your university study ensures the CQUniversity qualification you earn will be valued as a true indication of your individual academic achievement and will continue to receive the respect and recognition it deserves.

As a student, you are responsible for reading and following CQUniversity’s policies, including the Student Academic Integrity Policy and Procedure. This policy sets out CQUniversity’s expectations of you to act with integrity, examples of academic integrity breaches to avoid, the processes used to address alleged breaches of academic integrity, and potential penalties.

What is a breach of academic integrity?

A breach of academic integrity includes but is not limited to plagiarism, self-plagiarism, collusion, cheating, contract cheating, and academic misconduct. The Student Academic Integrity Policy and Procedure defines what these terms mean and gives examples.

Why is academic integrity important?

A breach of academic integrity may result in one or more penalties, including suspension or even expulsion from the University. It can also have negative implications for student visas and future enrolment at CQUniversity or elsewhere. Students who engage in contract cheating also risk being blackmailed by contract cheating services.

Where can I get assistance?

For academic advice and guidance, the Academic Learning Centre (ALC) can support you in becoming confident in completing assessments with integrity and of high standard.

What can you do to act with integrity?