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Post by bunyip on Nov 29, 2023 12:19:33 GMT 7
hi l am on the DSP and own my own home and thinking of selling and moving , l think l read the proceeds from the sale of a house are exempt from the assetts test while its sitting in my bank account and looking for another house to buy for up to a year ,? is that correct? But what about the interest l would earn while the money is in my savings account, is that also exempt, if its not exempt would l lose all or most of my DSP under the income test if l had the proceeds from the sale of my home sitting in my bank account earning interest for a year
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Post by bear on Nov 29, 2023 15:10:37 GMT 7
The above is exactly how it was when I sold a property in 1996 bunyip ..... When I sold another one a couple of years ago, because it was my primary place of residence it didn't attract capital gains tax and the proceeds went directly into my bank account which saw my pension reassessed under the assets test. Fortunately, depending on how you look at it, it didn't take me over the assets threshold so there was no change to my payment. What the assets limits are for a full pensionWhen your assets are more than the limit for your situation, your pension will reduce
Single non home owner limit before reduction $543,750.00
For every $1000 in assets above the applicable limit, your rate of pension will reduce by: To find out what the current state of play is, contact Centrelink Financial Information Services 13 2300 and they'll set you straight on how the property sale may or may not affect your DSP. Just give them.your estimated sale price or your portion of it if it's jointly owned. www.servicesaustralia.gov.au/financial-information-service"We help people with their Centrelink issues through sharing our experiences. We have no formal qualifications but we can point you to people who have". Cheers 🐻
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Post by Denis-NFA on Nov 29, 2023 19:15:23 GMT 7
bunyipAny interest you earn will be included as income in your pension assessment. But talk to a financial adviser to see if you can capitalize the interest?!
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Post by bear on Nov 30, 2023 5:14:34 GMT 7
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Post by dswau on Dec 4, 2023 7:16:40 GMT 7
bunyip Any interest you earn will be included as income in your pension assessment. But talk to a financial adviser to see if you can capitalize the interest?! It actually falls under the deeming rules: www.servicesaustralia.gov.au/deeming?context=22276Scroll down the page for the rates depending on your marital/partner situation. It works out quite well at the moment - Ubank are paying 5.1% at call on their savings account, so you're actually doing quite well parking money in a savings account at the moment. Obviously tax applies to the interest earned, but if your only income is (tax exempt) DSP then you're unlikely to get above the 0% income threshold on the interest earned.
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Post by dswau on Dec 4, 2023 7:21:07 GMT 7
hi l am on the DSP and own my own home and thinking of selling and moving , l think l read the proceeds from the sale of a house are exempt from the assetts test while its sitting in my bank account and looking for another house to buy for up to a year ,? is that correct? But what about the interest l would earn while the money is in my savings account, is that also exempt, if its not exempt would l lose all or most of my DSP under the income test if l had the proceeds from the sale of my home sitting in my bank account earning interest for a year Have a look at: guides.dss.gov.au/social-security-guide/4/6/3/90 for detail on PPR sale - the exemption period was extended to two years at the beginning of 2023 - this is to encourage age pensioners in four bedroom houses to downsize. The sale proceeds will be deemed at the rates set out at www.servicesaustralia.gov.au/deeming?context=22276 - and that rate is applied to the income test - not the actual interest that you receive - which when a savings account is chosen properly, will well exceed the deemed income. Before doing anything, have a chat to the FIS folks www.servicesaustralia.gov.au/financial-information-service - they are really helpful at assisting you in avoiding worsening your position financially in respect of pension payments.
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