Case Study: Superannuation and Estate Planning

Marks:30 marks: Refer to the Rubric for the detailed marking criteria.
Word limit:The word limit for this case study is no more than 2,500 words, excluding references and bibliography You must note the number of words on the cover page. A tolerance of 10% will be applied then the failure to comply will be reflected in your mark AND the marker has the discretion to cease marking.
Academic Integrity:You must submit through the Turnitin link in Blackboard. You will have the opportunity to review your work for inadvertent plagiarism and resubmit up to the due date. You must attach the coversheet available on Blackboard. Note that you may be asked to provide an oral defence of your assignment.
Learning outcomes and assessment criteriaThis assignment requires you to have mastered the concepts illustrated up to topic 7: Death Benefits. However, adjustment will be made to your answers in relation to death benefits because topic 7 is not covered in class before the assignment due date. You will need to show that you have researched and applied critical analysis to emerging issues in this area. The allocation of marks to the assessment criteria can be reviewed through the rubric which can be viewed on Blackboard. The graduate capabilities that will be assessed are: Curtin graduates acquire discipline knowledge and professional capabilities that enable them to transform lives and communities for the better.Innovative, creative and entrepreneurial: Graduates will be able to apply their discipline knowledge with intellectual inquiry, be creative leaders in problem-solving and challenge traditional ideas.Effective communicators with digital competence: Graduates will be able to effectively communicate, and confidently access, use and adapt information and technology to meet the needs of life, learning and future work.  
ReferencingThe required referencing format is AGLC4 with Bibliography
ExtensionsRefer to the Unit Outline regarding the procedure to be followed in seeking an extension. Note that an extension will only be granted to the extent that it does not affect the integrity of the assessment process, including the release of feedback to other students.


Bill and Jill own and operate a bakery under a franchise arrangement. The business is valued at $100,000, which is made up of $60,000 plant (depreciated value) and $40,000 goodwill. They own the land and premises for their store as joint tenants, which is currently valued at $700,000. There is no debt over this property.

While Bill, aged 59, works full time in the business, Jill aged 57, is employed full time in the public sector. Under the award that sets her conditions of employment she is entitled to a base salary of $200,000, with superannuation of 12% payable in addition to her base salary as long as the contributions are paid to the Public Sector Superannuation Fund. Under the terms of the Public Sector Superannuation Fund she also pays a personal contribution of 5% of her base salary, which is currently salary sacrificed. Her current balance is $1.3m in the defined benefit division. She has life insurance and income protection insurance through this fund.

Bill currently has superannuation of $150,000 in a retail fund. He makes contributions up to the concessional cap each year, depending on the business profits, and claims a tax deduction. They also have investments of $400,000 in managed investments outside the superannuation environment.  They do not consider themselves to be sophisticated investors and are generally happy to rely on strategies set by fund managers. They have not made any non-concessional contributions over the last three years.

Bill and Jill have an adult daughter, Leah, who has studied business and finance at university.  She has a superannuation balance of $20,000 in a defined contribution fund.

Jill’s sister has recently died. She had a superannuation account with a balance of $800,000, with Jill as the nominated beneficiary. The account is 70% taxable and 30% non-taxable components.

Bill and Jill have been told by “a mate at the pub” that they could do much better if they set up a self-managed superannuation fund because they could “run their business through the SMSF”.


Advise Bill and Jill on the following issues:

  1. What are the advantages and disadvantages of setting up a SMSF and would you recommend it as an appropriate course of action for Bill and Jill?
  • Assuming that they decide to establish a SMSF, advise them on
    • How will the inheritance be dealt with, and can it be rolled over or otherwise invested in the SMSF? 10% (3)
    • How to maximise their retirement savings in the SMSF and 10% (3)
    • Whether they can “run their business through the SMSF”. 15% (4.5)
  • Skills: Communication and Ethics    25% (7.5)
  • You should refer to relevant legislation, rulings and case law to support your advice.
  • You should state any assumptions that you make in the preparation of this advice.
  • Due to the word limit restriction and as you are not expected to give financial product advice, you are not required to comply in full with ASIC RG 175 Licensing: Financial product advisers, although you may seek guidance from that document.

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