Overseas pension: Katherine you said the reduction is dollar for a dollar but Services Australia shows overseas income exempt to $204 for a single and rest subject to 50% deduction, for couples it is $300 exempt per fortnight and rest reduced by 25%. Please clarify
Hi Katherine, overseas pension has also impact on Jobseeker payments before age pension of 67. As I had injury last year, I can not work, I've got 13 weeks waiting period for Jobseeker payment and I am still on exemption. Overseas pension = income, that reduces Jobseeker payments, I guess up to rules of Centrelink for Jobseeker income ($150 - 0 reduction, above $150-$256 - reduction for 50 cents and income above $256 - reduction for 60 cents). It is my own experience. Just I need to overcome period till my 67 in the next year, where I will be eligible for OZZI pension reduced for overseas pension of the country that has an Agreement with Australia. I am aware, that any withdrawal from super will decrease Jobseeker payment as well.
Very informative - thank you. Can you tell me, in regards to selling second hand items on Ebay etc, what annual sales limits might apply before the sales may be considered as income, when this is not being done as a form of self-employment? Or are there any requirements for records to be kept, before the Centrelink aged pension payment values are effected? So, if I sell second hand clothes of say $26K during the year, and I am aware that the Tax office does link to Ebay sales records, could any part of the sales value be considered by Centrelink as income?
Hello Linda, most certainly it will be considered as an income, especially if this is an ongoing activity. You are being treated as a sole trader and you will need to explain your activity and where the income comes from.
wow, that's a difficult question and even Centrelink would find it hard to answer. I am sure this would be on client by client basis to understand what was sold, if your own clothing, that I believe it is hardly an income, but if you are trading second-had clothing, then this most certainly would be treated as income (less maybe business costs if you can prove those).
Thankyou for the very informative videos. Could I please ask if a single woman on full aged pension was awarded an $$$ amount as compensation, does she have to inform centrelink of the full amount (200) if she plans on gifting part of it (50) before it is deposited into her bank account ?
Hello, I am not sure if you even have a choice of moving compensation money to other accounts then those that are registered to your name, I would have thought that no.
Hello Katherine . Thank you so much for your videos, they are very informative and well presented. I just want to know how Centrelink value overseas properties you owned to be included in your assets. Also, how do you treat money loaned to your children of which interest is being paid but not principal. Thank you. Meding
wow, few questions, overseas property is counted as any other property, no difference in which country, Australia or otherwise. Loan is subject tp deeming just like any other financial assets, regardless of the interest being charged.
With shares, does Centrelink need ro know the amount of shares and the share price or just total $ invested. Do you need to update them constantly as the share value increases? Have you got a video how this works?
Hi Katherine, I recently came across your videos by chance.I have seen a few of them and I must said they are all very informative. Thank you very much for your great effort in creating this channel to help us. I just saw your video on " To deem or not to deem ". You mentioned about holding on to the account based income stream which was set up before January 2015 and not to do anything until we receive full advice. The problem with my account based income stream is I have 2 separate retirement income streams from 2 separate Superannuation funds and I have been paying quite a lot of fees to both Funds. Have you done any video about " Merging the funds to save on fees " please ?. I am not sure whether you will receive my message or not as this is my first time placing a comment on youtube. Thank you.
I am so very happy you wrote your message. I understand your worry about fees, and it needs to be considered, but the main problem with merging those old income streams is that once they leave the original provider, they will lose a very special treatment by Centrelink, often ending up in reduction of Age Pension. This is why you need to get advice before you rollover any money from those old accounts. So a good advice should provide you with a comparison of keeping those funds and paying fees and merging them and impact on Age Pension. if unsure, just contact me. I could prepare the video you requested, but it will not resolve your problem at all, as with your income streams it is the Age Pension impact that is of issue.
Thank you so much for this explanation Katherine, I now have a better understanding of the actual process of deeming. However, if a couple is deemed to have, say $300 income from savings for example, is this amount used for taxation purposes, or just to calculate pension allowances? After all, it is still below the threshold for taxable income. And is it really worth the time Centrelink takes to work out the deeming rates for a pittance such as this?
Perhaps loans to family, or small self run business that might fall under Personal exertion while retired? I am trying to prepare for future retirement years at the moment for both me and hubbie. Hubbie currently has a small self employed business with low income at the moment, and holds stock.
Katherine thks for your info..I have roll my defined benifit into my super accumulation fund after retirement.How will that affect my age pension? Does it benefit to start inome stream after retirement?
Unfortunately I am unable to answer those questions, as I would need to see where the money is, how much. Defined benefit and accumulation benefit are different and could be treated differently by Centrelink, but you would need to organise an appointment for us, so I can actually see what super you have and how that would impact your eligibility. Just book a meeting via my webiste
you have a very good point, if honest and put what you have in your own name and say not a company then you may well not be entitled to anything as in my case ... the system rewards dishonesty to some extent good luck Bavarian Queen -- and thank you again Katherine for another thought provoking video
Thank you very much Katherine for your prompt reply.
Thank you katherine, It is greatly helpful to listen to you and a pleasure.
Thank you Sasha
Thank you Katherine for another informative video.
Overseas pension: Katherine you said the reduction is dollar for a dollar but Services Australia shows overseas income exempt to $204 for a single and rest subject to 50% deduction, for couples it is $300 exempt per fortnight and rest reduced by 25%.
Please clarify
Hi Katherine, overseas pension has also impact on Jobseeker payments before age pension of 67. As I had injury last year, I can not work, I've got 13 weeks waiting period for Jobseeker payment and I am still on exemption. Overseas pension = income, that reduces Jobseeker payments, I guess up to rules of Centrelink for Jobseeker income ($150 - 0 reduction, above $150-$256 - reduction for 50 cents and income above $256 - reduction for 60 cents). It is my own experience. Just I need to overcome period till my 67 in the next year, where I will be eligible for OZZI pension reduced for overseas pension of the country that has an Agreement with Australia. I am aware, that any withdrawal from super will decrease Jobseeker payment as well.
We should be like Canada and not have it subject to any test. If they can afford it we can.
Maybe, but Australia has those rules, and my goal is to explain them and maximise the final benefit where possible.
Very informative - thank you. Can you tell me, in regards to selling second hand items on Ebay etc, what annual sales limits might apply before the sales may be considered as income, when this is not being done as a form of self-employment? Or are there any requirements for records to be kept, before the Centrelink aged pension payment values are effected? So, if I sell second hand clothes of say $26K during the year, and I am aware that the Tax office does link to Ebay sales records, could any part of the sales value be considered by Centrelink as income?
Hello Linda, most certainly it will be considered as an income, especially if this is an ongoing activity. You are being treated as a sole trader and you will need to explain your activity and where the income comes from.
wow, that's a difficult question and even Centrelink would find it hard to answer. I am sure this would be on client by client basis to understand what was sold, if your own clothing, that I believe it is hardly an income, but if you are trading second-had clothing, then this most certainly would be treated as income (less maybe business costs if you can prove those).
Thankyou for the very informative videos. Could I please ask if a single woman on full aged pension was awarded an $$$ amount as compensation, does she have to inform centrelink of the full amount (200) if she plans on gifting part of it (50) before it is deposited into her bank account ?
Hello, I am not sure if you even have a choice of moving compensation money to other accounts then those that are registered to your name, I would have thought that no.
Hello Katherine . Thank you so much for your videos, they are very informative and well presented. I just want to know how Centrelink value overseas properties you owned to be included in your assets.
Also, how do you treat money loaned to your children of which interest is being paid but not principal.
Thank you. Meding
wow, few questions, overseas property is counted as any other property, no difference in which country, Australia or otherwise. Loan is subject tp deeming just like any other financial assets, regardless of the interest being charged.
Got a investment property worth millions and still want a pension . W. T. F.
I am not really sure what you are referring to
really valuable info. thank you!
For singles how super they have before aged pension is reduced
Thank you
With shares, does Centrelink need ro know the amount of shares and the share price or just total $ invested. Do you need to update them constantly as the share value increases? Have you got a video how this works?
Hi, no I have not done a video about shares, so I will try to prepare one
@@AboutRetirementTV that would be great if you could, thanks
Hi Katherine, I recently came across your videos by chance.I have seen a few of them and I must said they are all very informative. Thank you very much for your great effort in creating this channel to help us. I just saw your video on " To deem or not to deem ". You mentioned about holding on to the account based income stream which was set up before January 2015 and not to do anything until we receive full advice. The problem with my account based income stream is I have 2 separate retirement income streams from 2 separate Superannuation funds and I have been paying quite a lot of fees to both Funds. Have you done any video about " Merging the funds to save on fees " please ?. I am not sure whether you will receive my message or not as this is my first time placing a comment on youtube. Thank you.
I am so very happy you wrote your message. I understand your worry about fees, and it needs to be considered, but the main problem with merging those old income streams is that once they leave the original provider, they will lose a very special treatment by Centrelink, often ending up in reduction of Age Pension. This is why you need to get advice before you rollover any money from those old accounts. So a good advice should provide you with a comparison of keeping those funds and paying fees and merging them and impact on Age Pension. if unsure, just contact me. I could prepare the video you requested, but it will not resolve your problem at all, as with your income streams it is the Age Pension impact that is of issue.
Great information😁
Thank you so much for this explanation Katherine, I now have a better understanding of the actual process of deeming. However, if a couple is deemed to have, say $300 income from savings for example, is this amount used for taxation purposes, or just to calculate pension allowances? After all, it is still below the threshold for taxable income. And is it really worth the time Centrelink takes to work out the deeming rates for a pittance such as this?
Exactly %100 correct. People getting advice from a lightweight bean counter is a no no.
Can you think of any other assets that I have not included in the list?
Perhaps loans to family, or small self run business that might fall under Personal exertion while retired? I am trying to prepare for future retirement years at the moment for both me and hubbie. Hubbie currently has a small self employed business with low income at the moment, and holds stock.
Precious metals and Crypto Currencies and how do they check?
Katherine thks for your info..I have roll my defined benifit into my super accumulation fund after retirement.How will that affect my age pension?
Does it benefit to start inome stream after retirement?
Unfortunately I am unable to answer those questions, as I would need to see where the money is, how much. Defined benefit and accumulation benefit are different and could be treated differently by Centrelink, but you would need to organise an appointment for us, so I can actually see what super you have and how that would impact your eligibility. Just book a meeting via my webiste
Bad luck to work hard all your life and own your house, have super and money in the bank- best to be a welfare recipient all your life-
you have a very good point, if honest and put what you have in your own name and say not a company then you may well not be entitled to anything as in my case ... the system rewards dishonesty to some extent good luck Bavarian Queen -- and thank you again Katherine for another thought provoking video
@Alan Painter thank you
And rob you up to 40% of your pension leaving you with less then $700 a fortnight