Q: If I have retired from work and later on inherit a reasonable sum of cash, can I make a non-concessional contribution into my superannuation fund? OR is that only permitted while I am working, regardless of my age? A: For the benefit of other readers, I will first explain the meaning of a non-concessional ... Read more
Super contributions before and after age 65
Q: I have a three-part question. I turn 65 in January 2019 and would like to make a $325,000 contribution by way of off-market share transfers and cash to my SMSF before I turn 65 ($25K deductible super contributions and $300K non-deductible under the bring forward rules). Will I be able to take advantage of the ... Read more
Super contributions beyond the age of 75
Q: If employers must now make Superannuation Guarantee contributions for over-70s, does this mean that additional concessional or non-concessional contributions can also be made by those aged over 75? A: The short answer is ‘no’. Although employers are now required to make Superannuation Guarantees for any eligible ... Read more
Australian Age Pension: Am I eligible and how do I apply?
Any Australian resident hoping to receive the Age Pension must actively apply for this government-funded benefit. You don’t automatically receive the Age Pension when you reach a certain age, or when you satisfy the other eligibility requirements. You must complete special Centrelink forms and submit those forms to ... Read more
What assets count for the Age Pension assets test?
The Age Pension assets test is one of the tests that you must pass if you plan to claim the Age Pension. The Age Pension assets test involves two main thresholds, with the lower assets threshold determining if you will receive the FULL Age Pension and the higher assets threshold determining if you will receive the PART ... Read more
Is my super pension counted when applying for the Seniors Health Card?
Q: I have searched numerous websites but cannot find a simple answer. I intend starting my allocated pension next month but can’t find out if I am entitled to the Commonwealth Seniors Health Card. The Centrelink info sheet quotes income limits but this appears to turn into ‘adjusted taxable income’. My allocated ... Read more
Repay debts with super: then claim Age Pension?
Q: I have read about the changes to the Age Pension assets test which hit Age Pensioners from January 2017. My Age Pension age is 65, because I was born in June 1952, but I am still working and don’t plan to retire until I’m 67. My question is, can I pay my superannuation into my mortgage, live off my private savings ... Read more
Are you eligible for a Commonwealth Seniors Health Card?
IMPORTANT: Effective from 20 September 2018, the government has again indexed the income test thresholds for the CSHC (see this article for latest thresholds). The next indexation of the CSHC income thresholds takes place on 20 September 2019. Note that since 1 January 2015, new applicants for CSHC need to include ... Read more
Age Pension: Assets test thresholds applicable from September 2018
Note: This article explains the latest Age Pension assets test thresholds for FULL Age Pension (applicable from 1 July 2018 until 30 June 2019) and for PART Age Pension (applicable from 20 September 2018 until 19 March 2019), and also earlier thresholds (including from 1 July 2018 until 19 September 2018, and 20 March ... Read more
Managing capital gains tax with super contributions
Q: I am about to make a capital gain of about $200,000 on an investment property I have owned for several years. My marginal tax rate is 32.5% and I am an employee, and 43 years old. I want to contribute the equivalent of the capital gain to my super (which is not a self-managed fund), so I can save some money for the ... 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: We are not permitted to ... Read more
Capital gains: Reducing income tax via super contributions
Q: I have a self-managed super fund (SMSF), and I also have two investment properties in my personal name. When I sell the properties, I will be required to pay capital gains tax. Can this capital gains tax be offset by a contribution to the SMSF which would be tax-deductible? Would there be a 15% contributions tax? I ... Read more
