This document provides guidance on calculating zakat on superannuation funds in Australia. It discusses that zakat is due on any voluntary contributions to superannuation funds each year after the funds reach the nisab threshold. For compulsory contributions required by law, zakat is not due annually but only when the funds are accessed at retirement. Scholars differ on whether zakat is then due immediately or after one lunar year. The conclusion is that determining zakat on superannuation funds in Australia requires further specialized research given the complexity and uniqueness of Australian superannuation laws and structures.
This powerpoint goes into depth and explains FSAs, HRAs and HSAs, how they work together, who can participate, and what types of rules apply. It's a little boring, long, and somewhat detailed. However, you can use just portions of the slides if you'd like. The last 20 or so slides may be useful if an employer is offering high deductible health insurance plans, with an HSA - and already has an FSA in place This is a Continuing Education Course in California, under the Department of Insurance.
The Zakawi Investment in Tunisia: Sharia and Economical Dimensionsinventionjournals
The main reason of the economic and social crises experienced by most Arab countries and intensified after the events of 2011 (unemployment, poverty, lack of development, weak or negative national GDP .....) is the weakness of resources allocated to economic and human development. On the other hand, a large segment of young people, unemployed, have small project ideas and have not been able to obtain adequate funding. Therefore, the exploration for new innovative and unconventional solutions to finance development and reduce poverty becomes an urgent necessity. Zakat funds can be as a solution to this issue (Ihsana El Khulqo and al, 2016 [11]). The idea is to focus on investment instead of consumption. Our analysis shows that Zakat has a helpful effect on economic and social development in Tunisia.
There are many benefits available for Senior Citizens to make their post retirement journey merrier. Moreover, right investment choices can make them financially capable to live it up. Let’s have a look at few special benefits & investment options available for senior citizens.
This powerpoint goes into depth and explains FSAs, HRAs and HSAs, how they work together, who can participate, and what types of rules apply. It's a little boring, long, and somewhat detailed. However, you can use just portions of the slides if you'd like. The last 20 or so slides may be useful if an employer is offering high deductible health insurance plans, with an HSA - and already has an FSA in place This is a Continuing Education Course in California, under the Department of Insurance.
The Zakawi Investment in Tunisia: Sharia and Economical Dimensionsinventionjournals
The main reason of the economic and social crises experienced by most Arab countries and intensified after the events of 2011 (unemployment, poverty, lack of development, weak or negative national GDP .....) is the weakness of resources allocated to economic and human development. On the other hand, a large segment of young people, unemployed, have small project ideas and have not been able to obtain adequate funding. Therefore, the exploration for new innovative and unconventional solutions to finance development and reduce poverty becomes an urgent necessity. Zakat funds can be as a solution to this issue (Ihsana El Khulqo and al, 2016 [11]). The idea is to focus on investment instead of consumption. Our analysis shows that Zakat has a helpful effect on economic and social development in Tunisia.
There are many benefits available for Senior Citizens to make their post retirement journey merrier. Moreover, right investment choices can make them financially capable to live it up. Let’s have a look at few special benefits & investment options available for senior citizens.
What are pension assets?
What are pension liabilities?
Pension deficits/Underfunding
Accounting Rules – Pensions
Defined Benefit vs- Defined Contribution
Retirement Options / Canada
Public Sector Pensions
Private Sector Pensions
Five Trends Reshaping the Global Pension Fund IndustryState Street
This executive briefing explores how pension funds are adapting to the challenges of a new investment environment. The research presented in this report is based on an international State Street survey, conducted by the Economist Intelligence Unit in August 2014, of 134 senior executives in the pension fund industry.
This presentation covers all the compliance issues with HSA's as well as: which employees are eligible, contribution requirements, distributions requirements, and reporting requirements.
How to file form-1 (equalization levy) on new income-tax portal?Ankitasahu60
On or before the 30th of June immediately following the financial year, the statement in Form No.1 in respect of all the specified services chargeable to the equalization levy must be given.
The equalization levy would be 6% of the amount of consideration for specified services received or receivable by a non-resident not having a permanent establishment ('PE') in India, from an Indian resident carrying on business or profession, or from a non-resident having a permanent establishment in India.
A RESEARCH STUDY ON RANI LAXMI BAI PENSION SCHEME.
NEEDS OF THE STUDY
To know about the full detailed information of the Rani Lakshmi Bai pension scheme.
To know the states who are successful with this scheme.
CHAPTER SCHEME
Introduction of the scheme
Details of scheme
Data analysis and suggestion,
Learning experience
Conclusion
Amraz e jild aur tib e nabvi || Australian Islamic Library || www.australiani...Muhammad Nabeel Musharraf
Visit Australian Islamic Library for a huge collection of Islamic Books and multimedia.
www.australianislamiclibrary.org
www.facebook.com/australianislamiclibary
www.australianislamiclibrary.blogspot.com.au
What are pension assets?
What are pension liabilities?
Pension deficits/Underfunding
Accounting Rules – Pensions
Defined Benefit vs- Defined Contribution
Retirement Options / Canada
Public Sector Pensions
Private Sector Pensions
Five Trends Reshaping the Global Pension Fund IndustryState Street
This executive briefing explores how pension funds are adapting to the challenges of a new investment environment. The research presented in this report is based on an international State Street survey, conducted by the Economist Intelligence Unit in August 2014, of 134 senior executives in the pension fund industry.
This presentation covers all the compliance issues with HSA's as well as: which employees are eligible, contribution requirements, distributions requirements, and reporting requirements.
How to file form-1 (equalization levy) on new income-tax portal?Ankitasahu60
On or before the 30th of June immediately following the financial year, the statement in Form No.1 in respect of all the specified services chargeable to the equalization levy must be given.
The equalization levy would be 6% of the amount of consideration for specified services received or receivable by a non-resident not having a permanent establishment ('PE') in India, from an Indian resident carrying on business or profession, or from a non-resident having a permanent establishment in India.
A RESEARCH STUDY ON RANI LAXMI BAI PENSION SCHEME.
NEEDS OF THE STUDY
To know about the full detailed information of the Rani Lakshmi Bai pension scheme.
To know the states who are successful with this scheme.
CHAPTER SCHEME
Introduction of the scheme
Details of scheme
Data analysis and suggestion,
Learning experience
Conclusion
Amraz e jild aur tib e nabvi || Australian Islamic Library || www.australiani...Muhammad Nabeel Musharraf
Visit Australian Islamic Library for a huge collection of Islamic Books and multimedia.
www.australianislamiclibrary.org
www.facebook.com/australianislamiclibary
www.australianislamiclibrary.blogspot.com.au
Invocations from the Qur’an & Sunnah. This is a very beautiful booklet consisting of many authentic Dua’s (supplications) for a Muslim to supplicate on a daily basis and on special occasions.
Presentation slides of webinar presented by Aaron Dunn of The SMSF Academy on the finalisation of tax ruling, TR 2013/5, when a pension commences and ceases.
Find out how you can turn your pension into money you can use. Since 2015 there has been greater flexibility and freedom for people to access their pension savings. Find out more at https://www.tudorfranklin.co.uk
A Geographical History of the Quran
Written by Dr. Syed Muzzafar ud Din Nadvi (based on his teacher Syed Suleiman Nadvi's book - Tareekh Ardh Al Quran)
Exploring the Mindfulness Understanding Its Benefits.pptxMartaLoveguard
Slide 1: Title: Exploring the Mindfulness: Understanding Its Benefits
Slide 2: Introduction to Mindfulness
Mindfulness, defined as the conscious, non-judgmental observation of the present moment, has deep roots in Buddhist meditation practice but has gained significant popularity in the Western world in recent years. In today's society, filled with distractions and constant stimuli, mindfulness offers a valuable tool for regaining inner peace and reconnecting with our true selves. By cultivating mindfulness, we can develop a heightened awareness of our thoughts, feelings, and surroundings, leading to a greater sense of clarity and presence in our daily lives.
Slide 3: Benefits of Mindfulness for Mental Well-being
Practicing mindfulness can help reduce stress and anxiety levels, improving overall quality of life.
Mindfulness increases awareness of our emotions and teaches us to manage them better, leading to improved mood.
Regular mindfulness practice can improve our ability to concentrate and focus our attention on the present moment.
Slide 4: Benefits of Mindfulness for Physical Health
Research has shown that practicing mindfulness can contribute to lowering blood pressure, which is beneficial for heart health.
Regular meditation and mindfulness practice can strengthen the immune system, aiding the body in fighting infections.
Mindfulness may help reduce the risk of chronic diseases such as type 2 diabetes and obesity by reducing stress and improving overall lifestyle habits.
Slide 5: Impact of Mindfulness on Relationships
Mindfulness can help us better understand others and improve communication, leading to healthier relationships.
By focusing on the present moment and being fully attentive, mindfulness helps build stronger and more authentic connections with others.
Mindfulness teaches us how to be present for others in difficult times, leading to increased compassion and understanding.
Slide 6: Mindfulness Techniques and Practices
Focusing on the breath and mindful breathing can be a simple way to enter a state of mindfulness.
Body scan meditation involves focusing on different parts of the body, paying attention to any sensations and feelings.
Practicing mindful walking and eating involves consciously focusing on each step or bite, with full attention to sensory experiences.
Slide 7: Incorporating Mindfulness into Daily Life
You can practice mindfulness in everyday activities such as washing dishes or taking a walk in the park.
Adding mindfulness practice to daily routines can help increase awareness and presence.
Mindfulness helps us become more aware of our needs and better manage our time, leading to balance and harmony in life.
Slide 8: Summary: Embracing Mindfulness for Full Living
Mindfulness can bring numerous benefits for physical and mental health.
Regular mindfulness practice can help achieve a fuller and more satisfying life.
Mindfulness has the power to change our perspective and way of perceiving the world, leading to deeper se
Discover various methods for clearing negative entities from your space and spirit, including energy clearing techniques, spiritual rituals, and professional assistance. Gain practical knowledge on how to implement these techniques to restore peace and harmony. For more information visit here: https://www.reikihealingdistance.com/negative-entity-removal/
2 Peter 3: Because some scriptures are hard to understand and some will force them to say things God never intended, Peter warns us to take care.
https://youtu.be/nV4kGHFsEHw
Why is this So? ~ Do Seek to KNOW (English & Chinese).pptxOH TEIK BIN
A PowerPoint Presentation based on the Dhamma teaching of Kamma-Vipaka (Intentional Actions-Ripening Effects).
A Presentation for developing morality, concentration and wisdom and to spur us to practice the Dhamma diligently.
The texts are in English and Chinese.
In Jude 17-23 Jude shifts from piling up examples of false teachers from the Old Testament to a series of practical exhortations that flow from apostolic instruction. He preserves for us what may well have been part of the apostolic catechism for the first generation of Christ-followers. In these instructions Jude exhorts the believer to deal with 3 different groups of people: scoffers who are "devoid of the Spirit", believers who have come under the influence of scoffers and believers who are so entrenched in false teaching that they need rescue and pose some real spiritual risk for the rescuer. In all of this Jude emphasizes Jesus' call to rescue straying sheep, leaving the 99 safely behind and pursuing the 1.
A375 Example Taste the taste of the Lord, the taste of the Lord The taste of...franktsao4
It seems that current missionary work requires spending a lot of money, preparing a lot of materials, and traveling to far away places, so that it feels like missionary work. But what was the result they brought back? It's just a lot of photos of activities, fun eating, drinking and some playing games. And then we have to do the same thing next year, never ending. The church once mentioned that a certain missionary would go to the field where she used to work before the end of his life. It seemed that if she had not gone, no one would be willing to go. The reason why these missionary work is so difficult is that no one obeys God’s words, and the Bible is not the main content during missionary work, because in the eyes of those who do not obey God’s words, the Bible is just words and cannot be connected with life, so Reading out God's words is boring because it doesn't have any life experience, so it cannot be connected with human life. I will give a few examples in the hope that this situation can be changed. A375
The Hope of Salvation - Jude 1:24-25 - MessageCole Hartman
Jude gives us hope at the end of a dark letter. In a dark world like today, we need the light of Christ to shine brighter and brighter. Jude shows us where to fix our focus so we can be filled with God's goodness and glory. Join us to explore this incredible passage.
2. 2 Zakat Made Simple for Superannuation
How do I calculate zakat on my
superannuation?
The answer to this question is complex, multifaceted and requires
expertise. Only those who are qualified in Islamic jurisprudence and Usul-
Fiqh can make intellectual interpretations on how the laws on zakat should
be applied to new types of wealth such as superannuation and retirement
investment funds. The complexity lies not only in defining
these assets so that they may be compared to assets
referred to in the Sunnah and Shariah, but suffice
to say that the definition of superannuation as an
asset is not the only test applied in the process
of deciding whether zakat is payable on an asset.
Scholars also apply the tests used by classical
scholars such as the criteria of ownership, growth,
nisab and the haul in the ijtihad on this issue.
(Zayas, 2008)
Firstly, an understanding of Australian laws that govern superannuation is
necessary, to allow for an understanding of how scholars may approach the
question of zakat on Superannuation.
Superannuation in Australia
Superannuation is a long term financial investment product that has been
used by some as a means of saving for retirement since the early 1900’s.
(Berrill, 2014) However in 1992 the Australian government introduced
compulsory superannuation as a support mechanism and “savings vehicle”
to reduce the financial burden on the government to fund the needs of an
increasing ageing population in retirement. (Berrill, 2014) Superannuation
funds provide savings in the form of lump sum payments to fund members,
monthly superannuation payments or a combination of both at retirement.
3. 3 Zakat Made Simple for Superannuation
Laws on contributions to superannuation funds
By law employers must make contributions consisting of 9.5% of ordinary
time earnings into a specified or unspecified superannuation fund
(pending new legislation: see treasury.gov.au) on behalf of employees
that earn a minimum $450 per month before tax. This is to ensure that
all workers have a compulsory nest egg for retirement. It is referred to
as the super guarantee (SG). Superannuation Guarantee(Administration)
Act(commonwealth). However there are options for individuals to increase
their retirement investments via voluntary contributions (capped at
$30,000 per annum) in addition to compulsory superannuation. These
contributions provide tax benefits to the members because they are paid
out of pre-tax earnings and they reduce the assessable income of the
individual resulting in a lower tax bill. Salary sacrifice contributions are
taxed at 15% rather than at 32.5%. (Moneysmart.gov.au)
Laws governing access to superannuation funds
The laws governing the management of superannuation also include rules
restricting access to the funds. Fund members have limited control over
their wealth and generally can only receive it at retirement or in capped
amounts, under some extreme circumstances when they have met certain
conditions. The criteria may vary slightly between funds but
generally partial or complete lump sum payments to
members are possible depending on whether the
individual has reached preservation age (before 65yrs)
and retires or retires at age of 65. Circumstances
where special consideration may be given by
the fund trustee to allow the early release of a
limited amount of funds include: financial hardship,
incapacity due to disability, severe or terminal illness.
Application for consideration to the trustee does not
guarantee acceptance and is up to the discretion of the
trustee. In addition these sums are subject to taxes and costs related to
the release of the funds. However there are other exceptions to the rule.
4. 4 Zakat Made Simple for Superannuation
For example some cases may arise where individuals have part of their
superannuation not preserved as they were part of funds established
before July 1, 1999. This component may be accessed at any time.
At present in Australia
In Australia at present the advice or e-fatwas that have been published on
the issue of zakat on superannuation products, have advised that zakat is
due on this new type of wealth. It is important to note that each financial
arrangement in relation to superannuation will differ from one individual
to another. This is based on each individual’s level of involvement or
participation in the management of their fund. The 9.5% contribution is
based on the compulsory portion that has been legislated for employers
to pay into specified funds and all super funds will at the minimum consist
of this component. Alternatively, some employees and business owners
may choose to contribute voluntarily via their pre-tax salary or arbitrary
amounts, to increase their investment in Superannuation. This alters the
financial structure and nature of the asset and will impact the way in which
zakat is levied. Therefore any deliberation of zakat on Superannuation must
take into consideration voluntary and compulsory components of super as
the structure will affect the rights and responsibilities of the individual in
regards to the zakat payable on their Superannuation.
There are two approaches that have been followed in providing guidance
on the issue of zakat on superannuation in Australia. These have
mainly consisted of advice by Islamic organisations or through personal
inquiries made by the general public via e-fatwa sites on the internet. It
is noteworthy the advice provided has been based on fatwas by qualified
scholars on similar cases found globally.
5. 5 Zakat Made Simple for Superannuation
Zakat in Australia
THE FOLLOWING ADVICE / E-FATWA RULINGS ARE INDICATIVE OF THE
NORMATIVE PRACTICE IN AUSTRALIA.
Zakat on Voluntary contributions to superannuation funds
This is based on the assumption that the individual/fund member is making
voluntary payments in addition to the compulsory 9.5% contributions made by
the employer into a superannuation fund out of ordinary time earnings. The
amounts may be varied and as mentioned earlier are capped at $30,000 per
annum. The definition of voluntary contributions also includes contributions
made by business owners and individuals with self-managed funds.
Note: The voluntary contributions may consist of regular salary sacrifice
contributions or arbitrary amounts invested at the individual fund members’
discretion and financial capacity.
Basic structure of superannuation fund which includes
voluntary contributions
Compulsory contributions (9.5% of ordinary time earnings) (CC) per
annum + voluntary contributions (VC) per annum = Total Investment into
superannuation fund per annum (TI)
Note: This represents a simplified structure of this type of fund. Each
individual needs to assess his own personal circumstances when
calculating zakat on his excess wealth.
• Zakat is due on voluntary contributions made to superannuation funds
and payable yearly onwards from the point it reaches nisab. (Kahf, 2015)
6. 6 Zakat Made Simple for Superannuation
• According to Mufti Desai: “Zakat is applicable on all
voluntary contributions you have made towards the
superannuation scheme. However since the money
is not in your possession, Zakat will not be levied
at this moment but only once you get physical
possession of it.” (Lambat, 2015)
• It has been advised by some scholars to calculate
and pay zakat yearly to prevent errors and confusion.
• The rate of zakat is at 2.5% of the value of the contributions.
• Zakat is payable each lunar year (haul) until the receipt of the money
at retirement.
• In circumstances where an individual removes money from his/her fund
at any time before retirement, zakat is due if the amount equals the
nisab. It is calculated at the rate of 2.5%.
These points have been based on the views of following scholars:
Mufti Desai, Imam Qasmi and committee of scholars for the Fiqh Council
of North America, Dr, Monzer Kahf and Professor Abdul Aziz Al-Qassar
(Faculty of Shariah) Kuwait University.
Zakat on non voluntary contributions
to superannuation funds (compulsory contributions)
BASIC STRUCTURE OF SUPERANNUATION CONSISTING OF
COMPULSORY CONTRIBUTIONS:
Compulsory contributions (9.5% of ordinary time earnings) per annum =
Total investment into superannuation fund per annum.
• Zakat is not levied during the lifetime of superannuation funds, where
the contributions consist only of the 9.5% compulsory component.
(i.e. no voluntary contributions are being made into this fund)
• Zakat is only calculated and payable when the wealth can be accessed
at retirement. This is due to the application of the criteria of ownership
on zakatable wealth. Scholars have ruled that since the individual is not
7. 7 Zakat Made Simple for Superannuation
in control of and cannot spend at will from the wealth, ownership can
only be acknowledged when the money is received. Professor Abdul Aziz
Al-Qassar (Faculty of Shariah) Kuwait University (Lambat, 2015), Sheikh
Yusuf Qaradawi (Rahman, 2012) and Dr. Monzer Kahf support this view.
(Kahf, 2015)
• According to Mufti Faizal Riza “….it is not compulsory to pay zakat on
one’s superannuation money until one gains access to it (i.e. when one
reaches the age of retirement.) And when one does gain access to it, he
will not have to pay zakat on it for previous years; he will merely have to
pay zakat on it from then onwards. This is also the view of Mufti Emran
Vawda, Mufti Munib Ahmad Ebrahim Desai.” (Riza, 2015)
• Zakat is payable at the time of receipt of the wealth vested in the
Superannuation fund. (Rahman, 2012)
• In contrast Imam Qasmi and scholars from the Fiqh
Committee of North America have a different view
in the timing of the zakat due on this wealth.
They include the criteria of the haul in their ruling
and are of the opinion that one lunar year needs
to pass after the receipt of the wealth from
the Superannuation fund before zakat is due.
(Lambat, 2015)
• Mufti Desai also rules it is to be included in the
calculation of zakat from this point onwards. (Riza, 2015)
• Zakat is not due for the previous years which constitute the lifetime
of the fund, as the individual did not have access to the funds.
(Rahman, 2012)
Note: These points are based on the fatwas of Sheikh Yusuf Qaradawi,
Dr. Monzer Kahf, Imam Qasmi, Mufti Riza, Mufti Vawda and Mufti Ahmad
and Mufti Desai on compulsory contributions to superannuation funds.
8. 8 Zakat Made Simple for Superannuation
Examples of Zakat calculation
1) Lump Sum received at retirement - prescribed tax due = Zakatable
Amount (Rahman, 2012)
2) Withdrawal Amount before retirement – (prescribed taxes and penalties)
= Zakatable Amount (Al-Qudah, 2015)
Conclusion
The issue of Zakat on superannuation is a complex question and it
requires research, scholarly inquiry and ijtihad by qualified jurists to
provide a solution for Australian Muslims, on how to calculate zakat
on Superannuation. At present Muslims in Australia are relying on
rulings based on models used in other countries. This
is not feasible for the long term as the structure and
legislation on Superannuation differs from country
to country and therefore impacts the way in which
zakat is levied on this type of wealth. Investigation
and analysis of the finer points of difference need
to be conducted. In view of this, research is being
undertaken in the form of an academic paper to
construct a more detailed perspective of the issue of
zakat on superannuation in Australia. It will include a study
of responses on this issue made by jurists/scholars in other contexts,
which may provide clarity and a framework for a comprehensive discourse
on the subject.
Allah Knows Best.
Disclaimer: The information provided is general and intended to be a guide only. Each
individual should seek independent advice, from qualified Islamic law scholars based on their
own personal/ particular circumstances and not rely on the information contained in this
publication. The author/s, editors and publishers are not responsible for any actions taken
or omitted by a person because of any information contained in this publication due to
human error or omission.
9. 9 Zakat Made Simple for Superannuation
Payments can be made to:
National Zakat Foundation
There are a few options available. Visit our website www.nzf.org.au/pay
Option 1: Bank Transfer
Account Name: National Zakat Foundation Incorporated
Bank: Commonwealth Bank Australia
BSB: 062 196
Acc No: 11378252
References: ZAKAT / SADAQAH / FIDYAH / FITR / KAFFAARAH /
TAINTED WEALTH
Option 2: Direct Debit (One off Ongoing)
Debit and Credit accounts can be used for all categories of payment types
ZAKAT / SADAQAH / FIDYAH / FITR / KAFFAARAH / TAINTED WEALTH
Option 3: PayPal
PayPal account holder as well Debit and Credit cards can be used without
a PayPal account
Also please consider setting up an on-going payment in any of the above
options by paying your zakat in advance or for on-going Sadaqah to help us
with our administration cost to distribute your Zakat, as we have a policy of
100% Zakat Distribution.
All donations to NZF are also 100% Tax Deductible, so if you require a Tax
Invoice, send us an e-mail at accounts.receivable@nzf.org.au