Do Disability Pensioners need to lodge tax returns?
March 27, 2008 by Josie Kay · Leave a Comment
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Q. Hello, Do you have to lodge A tax return if you are on the Disability pension, I am unsure as this is my first full year on the pension. I have no other income.
Kind regards
Teresa
Josie’s Answer: Teresa thanks for posting a question on www.askjosiekay.com. According to the Australian Taxation Office website, you probably don’t need to lodge an income tax return, if you are on the disability pension and have reached aged pension age.
You can read more about it here.
Basically, they are saying that if you received a pension, allowance or payment listed below and your taxable income was MORE THAN the following relevant amounts:
- $21,637 – if you were single, widowed or separated at any time during the year
- $20,710 – if you had a spouse but one of you lived in a nursing home or you had to live apart due to illness
- $18,330 – if you lived with your spouse for the full year Read more
How much Capital Gains Tax do I have to pay?
March 25, 2008 by Josie Kay · Leave a Comment
Q. Hi Josie just a quick question. In 2001 my wife and i purchased our home and 50 acres for $198000.We have just sold half the land alone for $218,000 leaving us the house and 25 acres. We own the place outright and want to know what capital gains we would have to pay and how we can reduce this if we can. I am employed and make around $52000 and my wife works part time earning around $10000 and we have 2 children aged 13 and 10.Thank you for your time Tim
Josie’s answer: Hi Tim. Capital Gains Tax (CGT) is a very complex area of taxation. Basically, the family home is tax free, but only if the land area is less than 2 hectares.
Consequently, the half that you sold will be subject to capital gains tax. Determining how much is very tricky as difficulties arise in determining the value of the land in excess of the 2 hectares which is exempt.
For example, a qualified valuer may value the land that your family home is sitting on to be worth significantly more than the balance (some of it could be swamp land). Therefore, I am not really in a position to estimate your potential tax liability. For your info, I have included a link to the ATO website which covers this matter Guide to capital gains tax 2005-06. Read more
What Risks Should I Be Aware Of When Investing?
March 24, 2008 by Josie Kay · Leave a Comment
Q. Hi Josie, my question Is about Investing and in particular the different types of risks when it comes to investing?
Josie’s Answer -There are lots of things that can affect the performance of your investment. These include business risk and market risk.Business risk is where we might be disappointed by a company’s investment results which can be caused by inefficient management, competitors beating them at their game, changes to the industry etc. It makes sense to diversify a portfolio across different company’s shares and share markets (
Wealth Creation Tip #2 - Podcast
March 18, 2008 by Josie Kay · Leave a Comment
This weeks Wealth Creation Tip is simply entitled - “I hate Budgets.” Can you believe? Josie Kay actually admitting she hates Budgets…..or does she?
Audio runs for 90 seconds….Click the play button and let’s start saving.
My Allocated Pension is losing me money. Do I take it out?
March 17, 2008 by Josie Kay · 2 Comments
Question. I have approx $44,000 in allocated pension super fund. I am losing money. At present, I draw $300 a month. If market stays volatile for say 5 years I probably will only have say, $20,000 let. I am thinking of taking funds out and putting into term deposit at bank. Is this the way to go? Will I lose much from Centrelink Age Pension? Thanks for considering. Marlene
Josie’s answer: Marlene, I can understand why you are very concerned at the moment. Sharemarkets around the world are going up and down like a yo-yo.
For your info, after a big fall it is not unusual to see big gains (just don’t know when!). The situation is worse for you as you are drawing income from your allocated pension, which means that you are withdrawing funds when the unit price has fallen, therefore crystallising any losses that you may have incurred. Based on history, I believe it is highly unlikely that the market will stay volatile for 5 years, but remember nobody has a crystal ball. Read more
I earn $55K. Do I have to pay the Medicare Levy Surcharge of 1%
March 16, 2008 by Josie Kay · Leave a Comment
Mike’s Question -
Now to your question - Assuming you are single, if you don’t have private hospital cover through private health insurance, you will be have to pay an extra 1% surcharge (on top of the 1.5% that you already pay).
If you are married, you won’t have to pay if your taxable income (plus reportable fringe benefits) is $100K. It increases to $101,500 if you have 2 kids, plus $1,500 for each additional child. Read more
I am going overseas. Do I need a Power of Attorney?
March 13, 2008 by Josie Kay · Leave a Comment
Q. I am going overseas and somebody told me that I might need a Power of Attorney. What do you think?
Josie’s answer: There are different types of Powers of Attorney, and in this case, note that I am NOT discussing Enduring or Irrevocable Powers of Attorney.
The main reason they are used is to allow a legally capable individual to share his/her legal rights with another person in circumstances where that individual may not be available to exercise those rights himself/herself.
As you stated you will be going overseas, the tyranny of distance makes it difficult to sign documents.
For example, you might want to give someone an authority to access your bank account whilst you are away.
Obviously you need to be very careful. They should only be given to some who you trust and you must have confidence powers will not be abused. Read more
What is Investment Risk?
March 13, 2008 by Josie Kay · Leave a Comment
Q. Hi Josie. The Share market has had more ups and downs over the past few months than a yo yo competition….One term I hear a lot of financial commentators and even work mates use is “Investment Risk” What do you mean by investment risk?
Josie’s Answer – Thanks for you Question…another interesting and quite topical at the moment. Investment Risk for most investors means the risk of losing capital.
Losing capital is never pleasant, but risk can only mean not receiving an appropriate level of income, or the risk of not achieving a desired level of growth. Read more
What happens If I die without a will?
March 12, 2008 by Josie Kay · Leave a Comment
Q. Hi Josie. I turned on the news after work today and it was one tragedy after another….which got me thinking, if I die today, what will happen if I don’t have a will in place?
To your question, It is recommended that everyone has a will, even if you think you have no money.
You might have some in your super fund that you have forgotten about. If a person dies without leaving a will they are said to die intestate and how it is divided up depends on where you live. Read more
Margin loans - A Friend Of Mine Says They’re The Way To Go, Why?
March 11, 2008 by Josie Kay · Leave a Comment
Q. A friend of mine has a margin loan. Why would he have one?
Josie’s answer - There has been lots of bad press lately about margin loans (you may recall Eddie Groves from ABC Learning is now in deep financial trouble because of them).
Margin lending is a higher-risk strategy. Your investment, for example, the shares you bought, is the security for the margin loan and its value varies on a daily basis.
If the share market takes a nosedive you might suddenly no longer have enough security for your loan. Read more
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