Do Disability Pensioners need to lodge tax returns?
March 27, 2008 by Josie Kay · Leave a Comment
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.josiekay.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 (Australia and overseas). 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 your 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?
Josie’s Answer – You’re right about the news….which is why I don’t really mind if I miss it ever now and then.
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
Taming the Inflation Dragon and Understanding why the Reserve Bank must increase Interest Rates
March 10, 2008 by Josie Kay · 9 Comments
Don’t worry, I am not about to give you a lesson in economics. I am asked this question quite often and thought I would try and address it as simply as possible.
I can totally understand why most people are baffled as to why the Federal Reserve Bank of Australia raises interest rates when many home owners are struggling to pay the mortgage, have high petrol bills and groceries seem to be getting a lot more expensive.
Why do they have to inflict more pain? One reason is that the Reserve Bank’ is very concerned that inflation is above their target band of 2-3%pa. The latest inflation figure released revealed that the underlying inflation rate was 3.6%pa which was a shocker. The experts are saying that interest rates will have to rise again in March.
Who Controls My Super When I Die?
March 9, 2008 by Josie Kay · Leave a Comment
Q. I heard that I can’t control who gets my Super when I die. Is this true?
Josie’s Answer - Well done. You are on the ball. Yes, it is true that you can’t control who gets your super when you die.
It can be ultimately determined by the Trustee of your super fund (some stranger who has never met you!) If you have retail superannuation fund e.g. AMP, MLC etc or an industry fund (not a self managed super fund) it can be challenged in the Superannuation Complaints Tribunal (SCT). Read more
I have a Question about “Wills and Separation”
March 7, 2008 by Josie Kay · Leave a Comment
Q. I am separated and wondering if my will is automatically revoked?
Josie’s Answer - No. However, the rules vary between each State.
We recommend you seek specialist legal advice. Wills should be reviewed every 3-5 years or whenever a major life event occurs e.g. separation, birth of a child. Read more
.
