Diploma of Financial Planning         Diploma of Financial Planning

                Module 3 Assignment

Submission Instructions:

Key steps that must be followed:

  1. Please complete the Declaration of Authenticity at the bottom of this page.
  2. Once you have completed all parts of the assessment and saved it (e.g. to your desktop computer), login to the Monarch Learning Management System (LMS) to submit your assessment.
  3. In the LMS, click on the file ”Submit DFP Module 3 Assignment” in the Module 3 section of your course and upload your assessment file/s by following the prompts.
  4. Please be sure to click “Continue” after clicking “submit”.This ensures your assessor receives notification – very important!

Click here to go to the Monarch LMS

Declaration of Authenticity*

I certify that the attached material is my original work. No other person’s work hasbeen used without due acknowledgement. I understandthat the work submitted may be reproduced and/or communicated for the purposeof detecting plagiarism.

Important assessment information
* I understand that by typing my name or inserting a digital signature into this box that I agree and am bound by the above student declaration.Student Name*:                                                                                 Date:

Aims of this assessment

This assessment covers the fundamentals of superannuation. It covers rules around contributing to superannuation such as the work test, as well as contribution limits (both concessional and non-concessional). Salary sacrifice strategies are addressed, as are the differences around a superannuation fund in accumulation phase versus pension phase. Tax consequences across contributions to super, money held within the accumulation phase, and lump sum withdrawal of benefits (inclusive of pension payments) is also explored. SMSFs are addressed including important tests such as the sole purpose test, and in-house asset test. The use of business real property including in-specie contributions into superannuation is also addressed in the context of SMSF strategies.

Marking and feedback

This assignment contains 4 assessment activities each containing specific instructions.

This particular assessment forms part of your overall assessment for the following units of competency:

  • FNSFPL502
  • FNSFPL503

If you are enrolled in SMSF units, the following units are also applicable.

  • FNSSMS501
  • FNSSMS505
  • FNSSMS601
  • FNSSMS602
  • FNSSMS603

Grading for this assessment will be deemed “competent” or “not-yet-competent” in line with specified educational standards under the Australian Qualifications Framework. 

What does “competent” mean?

These answers contain relevant and accurate information in response to the question/s with limited serious errors in fact or application. If incorrect information is contained in an answer, it must be fundamentally outweighed by the accurate information provided.  This will be assessed against a marking guide provided to assessors for their determination.

What does “not-yet-competent” mean?

This occurs when an assessment does not meet the marking guide standards provided to assessors. These answers either do not address the question specifically, or are wrong from a legislative perspective, or are incorrectly applied. Answers that omit to provide a response to any significant issue (where multiple issues must be addressed in a question) may also be deemed not-yet-competent. Answers that have faulty reasoning, a poor standard of expression or include plagiarism may also be deemed not-yet-competent. Please note, additional information regarding Monarch’s plagiarism policy is contained in the Student Information Guide which can be found here: http://www.monarch.edu.au/student-info/

What happens if you are deemed not-yet-competent?

In the event you do not achieve competency by your assessor on this assessment, you will be given one more opportunity to re-submit the assessment after consultation with your Trainer/ Assessor. You will know your assessment is deemed ‘not-yet-competent’ if your grade book in the Monarch LMS says “NYC” after you have received an email from your assessor advising your assessment has been graded.

Important: It is your responsibility to ensure your assessment resubmission addresses all areas deemed unsatisfactory by your assessor. Please note, if you are still unsuccessful in meeting competency after resubmitting your assessment, you will be required to repeat those units.

In the event that you have concerns about the assessment decision then you can refer to our Complaints & Appeals process also contained within the Student Information Guide.

Expectations from your assessor when answering different types of assessment questions

Knowledge based questions:

A knowledge based question requires you to clearly identify and cover the key subject matter areas raised in the question in full as part of the response. 

Skill based questions:

Where you are asked to write as though you are speaking to a client, your answers must show your ability to:

  • understand your client’s concerns/perspective/views
  • show empathy
  • display a professional response
  • explain ideas clearly and simply so your client can understand the issues

Good luck

Finally, good luck with your learning and assessments and remember your trainers are here to assist you J

Assessment Activity 1

Short Answer


Activity instructions to candidates

  • This is an open book assessment activity.
  • You are required to read this assessment and answer all 10 questions that follow.
  • Please type your answers in the spaces provided.
  • Please ensure you have read “Important assessment information” at the front of this assessment
  • Estimated time for completion of this assessment activity: 2-3 hours 

Question 1.1  

Question 1.2  Describe a market-linked fund. 

Question 1.3Question 1.4Question 1.5Alice believes you may as well die when you retire, so she chooses to continue to work on a casual basis at Bunnings.She is 68 years old and works exactly 30 hours each month of the year. She wants to contribute her own funds into superannuation, and seeks your advice as to whether she is able to contribute to super to top it up. Can she contribute into her super fund, based on her age? Why or why not?The bring-forward rule allows a fund member to bring forward two years of non-concessional contributions from the future if they under age 65. From 1 July 2017, for people under 65, what are the maximum bring forward limits based on their total superannuation account balance?Explain your answer.Describe a defined benefit.

Using an example, explain how salary sacrificing can reduce a person’s marginal tax rate.

Question 1.

Could all employees benefit from salary sacrificing some of their salary into superannuation? Explain your answer.

Complete the following table to show that you understand the way that fund earnings are taxed in the superannuation environment effective from 1 July 2017.
Question 1.7

Earnings tax on income returnsEarnings tax on capital returns
Accumulation phase
Transition to retirement income stream phase
Retirement income stream phase

Question 1.8

Explains the ‘pension benefits cap’. What phase of superannuation does this cap apply to?

Your clients are Mr and Mrs Jones. They are in their mid-50’s and they are planning for their retirement in 10 years’ time. Mr Jones has a much higher superannuation balance than Mrs Jones and the pension benefits cap is a concern for him in the future.Question 1.9

Explain the concept of ‘contributions splitting’ and how it could help Mr and Mrs Jones plan for the future.

Nicholas pays tax at a marginal tax rate (MTR) of 37% plus the Medicare Levy of 2%. What is the benefit of receiving fully franked dividends in his SMSF compared with receiving fully franked dividends in his own personal name? Question 1.10

Assessment Activity 2

Case Study



Activity instructions to candidates

  • This is an open book assessment activity.
  • You are required to read this assessment and answer allof the following questions.
  • Please type your answers in the spaces provided.
  • Please ensure you have read “Important assessment information” at the front of this assessment
  • Estimated time for completion of this assessment activity: 2-3 hours

Question 2.1  

Lisa is 59 years old and has permanently retired from the workforce. She has come to your office to seek advice in regards to her superannuation.  Lisa has $350,000 in her superannuation accumulation fund which comprises $70,000 as a tax free component and $280,000 as a taxable component (from a taxed source).  Lisa is planning to go on an extended overseas holiday with her daughter and would like to spend a year in Paris.  She has a few questions she wants you to clarify. 

Provide a clear explanation to Lisa for each of the following.

  1. Can Lisa access her tax free component first as she wishes to use the $70,000 towards her trip and would rather keep the remaining $280,000 invested?

 At what age can Lisa access all her funds tax free? How much of the total $350,000 can Lisa access as a lump sum withdrawal from her superannuation accumulation fund, without having to pay any tax at all on that withdrawal?

Lisa’s friend Sophie is 61 years old and she is considering meeting up with Lisa and her daughter for a few months in Italy. Sophie is also retired and she has a superannuation balance of $500,000 in an account-based pension which comprises $100,000 as a tax free component and $400,000 as a taxable component (from a taxed source).  Question 2.2  

Provide a clear explanation to Sophie for each of the following.

  1. Both Lisa’s fund and Sophie’s fund are producing investment returns of 5% per annum. Are the investment returns treated any different for tax purposes in Sophie’s fund compared with Lisa’s fund?

 If Sophie withdraws a total of $100,000 in the current financial year, will it come from the tax-free component or the taxable component? What are the minimum and maximum amounts that Sophie must withdraw annually from her account-based pension?

 How will the $100,000 withdrawal be taxed?

Question 2.3  

Sophie’s friend Bethany is 59 years old and continues to work. Bethany’s superannuation balance of $400,000 is in a transition to retirement pension account and comprises $100,000 tax- free component and $300,000 taxable component (from a taxed source). 

Provide a clear explanation to Bethany for each of the following.

  1. Assuming that Bethany’s fund produces an investment income return of 6% for the 2017-2018 financial year, explain the tax treatment of the return.

 If Bethany withdraws pension payments totaling $20,000 for the year, how will this be treated for tax purposes?

 When Bethany turns 60 and continues to withdraw $20,000 for the year, how will the withdrawal be treated for tax purposes?

Assessment Activity 3

Case Study

Superannuation –Death benefits

 Activity instructions to candidates

  • This is an open book assessment activity.
  • You are required to read this assessment and answer both questions.
  • Please type your answers in the spaces provided.
  • Please ensure you have read “Important assessment information” at the front of this assessment
  • Estimated time for completion of this assessment activity: 1-2 hours

Question 3.1  

Matthew is currently married to Susan and they have one child together, Annie, who is just 5 years old. Matthew also has 2 children, Zac and Toby, from his previous marriage with Penelope. Zac is 20 years old, attends university and is financially dependent on Matthew. Toby is 26 years old, works full-time as an electrician and lives with Amy. Matthew has a superannuation balance of $300,000 which is 100% taxable component (from a taxed source).

Complete the following table in respect of Matthew’s superannuationif it were to be paid out as a death benefit to each of these individuals.

 SIS dependant

YES or No
















Question 3.2  

What is the difference between a binding death benefit nomination (BDBN) and a non-binding death benefit nomination?

This is an open book assessment activity. Activity instructions to candidates

  • You are required to read this assessment and answer all 6 questions that follow.
  • Please type your answers in the spaces provided.
  • Please ensure you have read “Important assessment information” at the front of this assessment
  • Estimated time for completion of this assessment activity: 1-2 hours

Question 4.1  

Question 4.2  How many members can aSelf Managed Superannuation Fund (SMSF) have? 

Your client, Jane, has an existing balance of $500,000 in a retail superannuation fund and is considering establishing an SMSF where she will be the only member of the fund.

What options does Jane have in terms of who can be the trustees of her SMSF?

Susan has an SMSF with a total fund value of $800,000. She owns her own home which is valued at $425,000 and also owns a beach house worth $310,000 which she only uses during the very warm months of summer.  Susan wants her SMSF to purchase the beach house. Is Susan’s SMSF permitted to purchase the beach house from Susan? Explain why/or why not?Question 4.3

Question 4.4

Your clients, Sam and TerryBanks, have an SMSF and have just purchased a residential property at auction, using the cash that they had in their SMSF. The property will make up about 95% of the total assets of the fund. They are both in pension phase and ask you whether there are any issues they should know about.

  1. Explain two risks of having one asset comprising such a big portion of the fund.Sam heard a friend talk about the “sole purpose test”. Explain to him what that test means.
  • Explain the In-house asset rule? What percentage of In-house assets could your client have within their fund?What happens if the residential property couldn’t be tenanted for a significant period of time? Could your client move into it and pay rent to themselves?
  1. Would your answer to question (c) above differ if the property was business real property and your client leased the property for their own business? Explain

Maddox Smith

Greetings for the day !
Hope that you’re well !

We want to introduce ourselves as a team of professionals who are into academic writing for the last 10+ years. We can provide assignment assistance in all subjects. Our experts can provide solutions across all the topics right from Management, HR, Marketing, Finance & Accounts, Statistics, IT, childcare, nursing, law, and general writing. We provide plagiarism free work and also send a ‘Turnitin’ report along with completed work. Our services are available at reasonable cost; we entertain amendment requests from clients without any extra charges.

Our Feature Included

Ø Every assignment includes graphical representation like pie chart, bar graph, smart art and all.
Ø Free 0% plagiarism report
Ø Expert team for technical work as well.
Ø On time delivery
Ø Multiple rework facility
Ø Huge team of expert in each subject
Ø Referencing like: Harvard, APA, MLA, Oscola, automatic referencing all are familiar to our experts.

Subject we cover: Math , finance, economics, accounts, civil engineering, mechanical engineering, IT, Computer science, electrical and electronics engineering, history, geography, political science, sociology, physiology, philosophy, biology, microbiology, biotechnology, biotechnology, B-school assignments, project report, psychology, nursing assignments, medical assignments, Tourists and travelling assignments all kinds of dissertation and so on

Best Regards:
Oz Paper Help
WhatsApp:+1 585-666-2225

1 Step 1