Post by Banker on Oct 24, 2012 6:23:35 GMT 7
Some Q & A about Pensions please go to the link for more.
I am recently retired and receive a part pension. Due to my circumstances, I have no home but $200,000 deposited in an online account because I need to protect my capital. I live rent-free with a long-term friend. I understand I can earn up to $18,200 a year before I must pay tax. Is the pension included in the calculation of my annual income for the purposes of paying tax? If not, am I able to earn casual income and bank interest to a total of $18,000 before paying tax?
If you are a single person and are eligible for the senior Australian tax offset, you can earn $30,684 a year and pay no tax. This includes income from all sources, including the age pension. A pensioner can earn $6500 a year from employment - this money is not taken into account when assessing their eligibility under the income test.
I am an Australian pensioner considering Chile as a place to retire. I own a home in Australia and would like to know if I sell it, would I be able to buy a home in Chile without forfeiting my Australian pension? I am concerned that the amount of money I would receive in Chile would not be the equivalent of what I would receive in Australia.
Centrelink advises that the age pension can generally be paid for the total period of the absence. However, the rate may change after 26 weeks' absence if the person's Australian Working Life Residence (AWLR) is less than 25 years. The AWLR is the length of residence between age 16 and age-pension age. While the age pension may still be paid, other components of the payment, such as the pension supplement, may reduce, or cease to be paid. A pensioner's principal home is an exempt asset whether they live in Australia or overseas. If the pensioner buys a home in Chile, when they move into the home it will be an exempt asset. When they sell the home in Australia the share of proceeds that will be used to buy or build a new home will be exempt for 12 months from the assets test.
Read more: www.smh.com.au/money/ask-an-expert/is-the-pension-included-in-my-annual-income-20121023-282hz.html#ixzz2AARhbN4w
I am recently retired and receive a part pension. Due to my circumstances, I have no home but $200,000 deposited in an online account because I need to protect my capital. I live rent-free with a long-term friend. I understand I can earn up to $18,200 a year before I must pay tax. Is the pension included in the calculation of my annual income for the purposes of paying tax? If not, am I able to earn casual income and bank interest to a total of $18,000 before paying tax?
If you are a single person and are eligible for the senior Australian tax offset, you can earn $30,684 a year and pay no tax. This includes income from all sources, including the age pension. A pensioner can earn $6500 a year from employment - this money is not taken into account when assessing their eligibility under the income test.
I am an Australian pensioner considering Chile as a place to retire. I own a home in Australia and would like to know if I sell it, would I be able to buy a home in Chile without forfeiting my Australian pension? I am concerned that the amount of money I would receive in Chile would not be the equivalent of what I would receive in Australia.
Centrelink advises that the age pension can generally be paid for the total period of the absence. However, the rate may change after 26 weeks' absence if the person's Australian Working Life Residence (AWLR) is less than 25 years. The AWLR is the length of residence between age 16 and age-pension age. While the age pension may still be paid, other components of the payment, such as the pension supplement, may reduce, or cease to be paid. A pensioner's principal home is an exempt asset whether they live in Australia or overseas. If the pensioner buys a home in Chile, when they move into the home it will be an exempt asset. When they sell the home in Australia the share of proceeds that will be used to buy or build a new home will be exempt for 12 months from the assets test.
Read more: www.smh.com.au/money/ask-an-expert/is-the-pension-included-in-my-annual-income-20121023-282hz.html#ixzz2AARhbN4w