Superannuation Q and As

Trish Power (author of Superannuation for Dummies and DIY Super for Dummies) answers readers’ questions on super.

Set out below are all SuperGuide articles explaining Superannuation Q and As.

Repay debts with super: then claim Age Pension

Q: I have read about the changes to the Age Pension assets test taking effect from January 2017. My question is, can I pay my superannuation into my mortgage, live off my private savings and then receive the Age Pension when I turn 65? My age pension age is 65, because I was born in June 1952.A: … [Read more...]

What are the super and retirement rules for over-65s?

Q: My wife (age 63) and myself (age 65) were told by a financial organisation that at 65 or over I could put money into super, pay 15% tax on the way in, and then draw it out when I wished and pay no tax. In fact I have been told to pay myself $30,000 or less and source the rest of my income through … [Read more...]

Concessional contributions: SG and public servants

Q: I’m a member of a public sector fund, which is a hybrid defined contribution/defined benefit scheme. While I pay 5% of salary towards a ‘Member Benefit’, the super fund doesn’t have a 9.5% employer contribution, as my ‘Employer Benefit’ is based on years of service and Final Average Salary. I’m … [Read more...]

Warning: Government super website is incorrect and out-of-date

Q: I have been doing some research on the maximum amount that can be salary sacrificed into super for someone over age 60, and would appreciate your comments on a government website. It says the concessional contributions cap is $50,000, and that this cap has been indexed since the 2012/2013 year, … [Read more...]

SMSF borrowing: Is a limited recourse borrowing arrangement the same as a non-recourse loan?

Q: Can you differentiate between a limited recourse borrowing arrangement and a non-recourse loan. Are they the same thing?The precise meaning of different terms will depend on the definitions contained in the contract that the loan provider requires a borrower to sign.Generally speaking … [Read more...]

Property and super: What’s the deal? (15 popular Q & As)

We receive many questions from readers about investing in property using super money. Questions range from: ‘Can I withdraw my super to buy a house to live in?’, right through to ‘How can I use my super fund to borrow money to invest in property?’.For the convenience of our 2 million readers, I … [Read more...]

SMSFs: How do I calculate CGT on an asset sale?

Q: If I purchased a rental property in my SMSF for say $300,000 five years ago and the house is now valued at $400,000 in the SMSF what will be the capital base for the calculation of future capital gains tax (CGT) if I sell the flat? Will it be the original $300,000 or the $400,000?A: I am not … [Read more...]

Commonwealth Seniors Health Card: Am I eligible if I live in a commonwealth country?

Q: Could you tell me if the Commonwealth Seniors Health Card is available to Commonwealth Seniors? If not, why is the term Commonwealth used? We are UK seniors resident in the UK, but are house owners in WA and spend three to six months each year in WA on a tourist visa.A: You ask an excellent … [Read more...]

Age Pension: Does my superannuation lump sum count for income test?

Q: I’m over 65 and a member of a super fund, from which I receive an account-based pension. I need to withdraw a lump sum of $40,000 from my super, as my super is not enough to live on. I will have to apply for a part pension (Age) from Centrelink. Will my lump sum be counted as income in the … [Read more...]

Age Pension income test: Deeming rates and deeming thresholds

Note: This article explains the latest deeming rates and the deeming thresholds for the Age Pension income test. If you are seeking information about the latest increases in the thresholds for the Age Pension income test and Age Pension assets test see SuperGuide article Age Pension: More … [Read more...]