Question on what is classed as income when on the pension?

The Meeting Place > Dilemmas > Question on what is classed as income when on the pension?

Question on what is classed as income when on the pension?

10 yrs ago

I will be retiring after the end of this year and may be eligible for a part pension to supplement my own funding. If I was to have someone come to live with me and pay the bodycorp, would that be classed as income? The reason for asking is that it might put me just above the threshold for getting any pension. It will be difficult for me to manage on the small income that I will have and pay my bodycorp. Any suggestions?

5 comments

Always deal in cash. :))) I take no responsibility if you end up in jail :(((

Liani

10 yrs ago

Hahaha! Jaguar, thanks for that.....I think!

Your question is too complicated to answer on here Liana. However, in simple terms, you can look at your town house/villa/ unit as partial investment & have the deeming income put up as income & most likely not have your pensin affected. You would then be able to claim depreciation as well. You dont mention where you are, but in any Capital City, the rent for one room would be a lot more than the strata fees, but regardless of what you charged, the income would be deemed. The only negative would be when, if ever, you came to selling, at which time you would have to pay 15% capital gains tax on the proportion of the dwelling that was rented out. The alternative is to follow Jaguar's advice as do most. Just one tip. If you collect a bond, do not put it into the Bond Board.

Liani

10 yrs ago

Hi Innes, Thank-you for your advice, although I am not sure I understand exactly what you mean. I am on the Gold Coast and would sell and buy a house if I could, but as you are aware, the market has dropped considerably since I bought about 7 years ago. I guess that if I sold at a loss, there would be no capital gains tax, so your idea could very well work well. I would not do as Jaguar suggested as the lady in question would probably want to claim rent assistance and also to hold a good conscience. I am very grateful for your time and thoughts.

Liani, I could explain a lot better, but I would need to ask you a lot more questions that you would not want to put on here. I would suggest that you make an appointment with your Bank's Financial Planner & tell him what you are considering. The service is free & it could work out quite well for you income, pension & tax wise. I am assuming that you bought the unit brand new. Good luck.

Question on what is classed as income when on the pension?

Preview your comment