Jump to content
BANGKOK
johnmcc6

Australian pension

Recommended Posts

11 minutes ago, 4MyEgo said:

 I learn something every day.

 

Are you certain that if you have shares and earn $50,000 you can still draw a pension of $696/Fn ?

 

I thought you can only earn $172/Fn, after that they reduce your pension by $.0.50c for each $ ?

 

Now are we talking draw downs or earning here, which could be the difference, because if what you're saying checks out, it's too good to be true, but then again so was the time when I found out that you don't pay any tax on fully franked shares if you invest in the ASX as a non resident.

Centrelink doesn't care what you spend from super or investments they only deem the balances.

Check for yourself!

http://www.yourpension.com.au/APCalc/

  • Like 1

Share this post


Link to post
9 minutes ago, LosLobo said:

Centrelink doesn't care what you spend from super or investments they only deem the balances.

Check for yourself!

http://www.yourpension.com.au/APCalc/

This is crazy $hit, how far up to speed are you on this, I have just started reading this deeming thing which is new to me.

 

So is the threshold the same as a single/couple home owner if you don't own a property, i.e. you have your money in shares, or is there a different threshold ?

 

Is there an amount/threshold of income you earn from shares before they start reducing your pension ? 

 

Naturally I have a wife who is 21 years my junior, and I am sure we will be assessed on a couples pension but get paid the single pension ?

Edited by 4MyEgo

Share this post


Link to post
9 minutes ago, LosLobo said:

Pension peters out  when investments hit $768k.

So if I understand what you are saying is;

 

Centrelink don't care how much income you earn from shares as long as your assets stay under the threshold of $768k for Pension peters, and as long as his assets stay under $768k he will receive $696/Fn, in other words the pension won't get reduced ?

 

The link attached show some thresholds, but still, miles ahead as a couple: http://guides.dss.gov.au/guide-social-security-law/4/4/1/90

Edited by 4MyEgo

Share this post


Link to post
10 minutes ago, 4MyEgo said:

So if I understand what you are saying is;

 

Centrelink don't care how much income you earn from shares as long as your assets stay under the threshold of $768k for Pension peters, and as long as his assets stay under $768k he will receive $696/Fn, in other words the pension won't get reduced ?

 

 

No that was for investments of $500k but for a couple in your case $616 for $500k investment. Investments at $768k you get nothing.

 

I think there is some appeal process for one pensioner marrieds but I am single and have not experienced this.

Edited by LosLobo

Share this post


Link to post
4 minutes ago, LosLobo said:

No that was for investments of $500k but for a couple in your case $616 for $500k investment.

 

I think there is some appeal process but I am single and have not experienced this.

Cheers mate, you have opened up another door for me to start researching.

 

It looks like you can earn money from shares and not have your pension affected, although it sounds too good to be true, that said, will investigate further, and this might apply to non home owners only, which would be a category that I fit in

Share this post


Link to post
8 minutes ago, 4MyEgo said:

Cheers mate, you have opened up another door for me to start researching.

 

It looks like you can earn money from shares and not have your pension affected, although it sounds too good to be true, that said, will investigate further, and this might apply to non home owners only, which would be a category that I fit in

Single non homeowner full pension at $161k, part pension cutoff $768k of investments.

If you need any help with deeming let me know 🙂

Edited by LosLobo

Share this post


Link to post

Doesn't really add up. Why is a home rental below the threshold considered an income and effects the pension but that same money invested in shares and resulted income does not.

Surely every one would sell any investment property and roll over to shares.

  • Like 1

Share this post


Link to post
6 minutes ago, madmen said:

Doesn't really add up. Why is a home rental below the threshold considered an income and effects the pension but that same money invested in shares and resulted income does not.

Surely every one would sell any investment property and roll over to shares.

Yes I noticed an anomaly with investment property when I was doing some modelling.

 

I was going to share it but didn't think anyone would be up to it.

 

Obviously you are 🙂

 

Edited by LosLobo

Share this post


Link to post
8 minutes ago, LosLobo said:

Single non homeowner full pension at $161k, part pension cutoff $768k of investments.

If you need any help with deeming let me know 🙂

This doesn't make sense, can you re-write it please 🙂

 

Share this post


Link to post
Just now, 4MyEgo said:

This doesn't make sense, can you re-write it please 🙂

 

Sorry thresholds for investments are : full pension up to $161k then part pension until $768k 🙂

  • Like 1

Share this post


Link to post
24 minutes ago, LosLobo said:

think there is some appeal process for one pensioner marrieds but I am single and have not experienced this.

You need to have under 5K in total assets to be able to appeal to be able to get the full single pension if you are married. It is under a hardship clause.

 

I have a fair amount invested just at the moment in fully owned dividend-paying shares and I most likely could do sell call options on them if I wished and bring in a lot more. I plan to do this later (once I clear the 700K mark) as I will not be able to get my pension then. I get my DSP given to me monthly currently, and I am just deemed (CL knows everything I have and it is legally on their books) and I still get a decent payment. Once you get up around the 700K plus mark, I think you would get paid very little. You would need to use the pension calculator online to get an estimated amount. 

 

I also need to look into this more when I get the money.

 

  • Like 1

Share this post


Link to post
45 minutes ago, madmen said:

Doesn't really add up. Why is a home rental below the threshold considered an income and effects the pension but that same money invested in shares and resulted income does not.

Surely every one would sell any investment property and roll over to shares.

Further explanation : Home rental income is direct income but the income from all financial investments is deemed and is calculated on the investment balance not the return.

 

I also wondered why people have investment property. Maybe the capital gains make it more profitable.

 

Deeming which generally started in 2015 could become insidious once the Reserve Bank increases interest rates. The Govt doesn't need any major legislation to suddenly increase the deeming rates.

 

 

Edited by LosLobo
  • Like 2

Share this post


Link to post

Man Im glad I joined up into this forum , learnt a fair bit in a short time , 

 

and its motivated me to get my shit sorted . 

  • Like 1

Share this post


Link to post
Posted (edited)
17 hours ago, Silverfern said:

Man Im glad I joined up into this forum , learnt a fair bit in a short time , 

 

and its motivated me to get my shit sorted . 

What's that old saying, "knowledge is power", suffice to say I was pi$$ed off knowing that I couldn't hold onto my property when I moved here, i.e. if I held it, after 183 days I would be deemed a non resident as I am not living in Australia, the property would be taxed at 32.5c in every $ earned, then on top of that I would have to pay water & council rates, insurances, agents fees, repairs etc etc etc and could not claim anything back, add to that capital gains tax when selling, it just wasn't worth holding onto, suffice to say I sold it before the 6 months was up and the market headed south, good timing for me.

 

I found out by researching that if you invest the money in the ASX as I mentioned before, as a non resident, you do not pay any tax if you buy fully franked shares as the dividends have the tax paid by the companies before you get your payment, add to that no capital gains tax is payable on any shares sold, so why the hell would I want to hold property back in Oz, I have shares in 4 banks that pay me between 5.5% & 6.5% twice a year with other shares also paying me about the same rate tax free.

 

Some will say the market is risky, sure it is, so is real estate, I mean the Sydney market where I came from is down 20% over the past 3 years when I sold out, but you do not see the decline everyday.

 

Like I said market go up and down and if you buy in at the right time (when is that), how long is a piece of string), you can make a good gain, short trading is also a good payer, i.e. have your long term shares paying you your dividends, don't worry about any drops in value as your earning an income, they will climb back in time and as you don't need the capital its a no brainer, then day trade buying and selling as you go, and if the market dips when you have bought, hold, wait, hold, wait, hold, wait, and then when you think it's down to the bottom, buy in again, selling at the price your happy with.

 

You should be able to make 10% at the least tax free.

Edited by 4MyEgo
  • Like 1

Share this post


Link to post

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Recently Browsing   0 members

    No registered users viewing this page.

×
×
  • Create New...