Thank you so much 😊

So in that example where someone has gained 500k from a sale and that will be counted as deeming income. What if you gift that amount to a family member straight after sale? I couldn't find any answer to this

That’s easy,once you come off the boat, you go into Centre Link; or a 7/11 store!! 🤨🤨🧐🧐.. Anybody who’s worked hard in this corrupt country doesn’t go on Centre Link!! Which is privately owned anyway!! Like every other Government department!!

GESB. West State Super Fund.

thanks for clearing up the TBC but please do a session on adding more to super in accumulation fund if you want more than the 1.9 mill limit.

good work !

Often confusing but always appreciated. Thanks to you both.

Excellent

Really enjoyed this video and the main focus on income versus capital growth as you head into retirement.

Thanks Luke, great info of which I am aware of but let’s say a surviving spouse withdraws the full amount, closes the Super fund account, money is now in a bank account and he/she passes. Is this now tax free to adult kids given it’s an inheritance..? Make sense.? Cheers Tony

Good stuff, as much as I've explored all things super, I wasn't aware of this.. I'm 50 in the PSSdb very healthy looking will hit 10x multi a month prior to 60.. 2 teenage kids. Just started a HostPlus fund currently dumping cash into. Next step supplement with SS. So now with this info I'll rethink my strategy. Finer detail about income streaming to be worked out, aim to take 75ish percent annual salary the rest Lump sum I'll push over to some extend to HostPlus. But this makes me think just keep contributing NC.. My total super may be an issue. So I think I need to work out how much lump some will be required to free up enough cap for total super including Hostplus at 60. Think that's right. But yes aim will be good income strram from dB, big pot of low to no tax in hostplus start pension take minimum and keep loading it up

I haven't heard the entire issue to be discussed on this vlog. But, I surely think its about the greed on the government in taxing you twice. Sorry for being JUDGEMENTAL.

Your children will thank you when they put flowers at your headstone!

The 450000 inheritance i plane on dropping the lot into a home and living in it with my son as he is going to be paying the mortgage. so that shouldn’t affect my Centrelink payments

What if your 62 on centre link payments and you get a inheritance of 450000 and won’t to use that as a deposit on a house

Cheer~~~regular payment made into a fund by an employee toward a future pension.😊

Thanks so much for your show 😁

Hi Luke, I am thinking of disposing my investment property. I just turned 60 and not working. My super balance is above the cap to use the previous 4 years concessional contribution. My query is can I withdraw from super this financial year to reduce the balance and contribute to super in next financial year after disposing the asset where I could reduce cgt. Is this legitimately possible, appreciate your opinion. Thank you.

love the show. motivational!

Fantastic session. I love directing people to your discussions when personal finance comes up. Absolute champion.

Great one thanks Luke

Hi Luke, my partner and I have recently retired, I've just turned 60 and my partner is 62. Instead of selling one of our investment properties (the property under consideration is owned in my partners name) which is mortgage free and being rented on the short term rental market to maximise returns and control over the property, I've been thinking about taking out a reverse mortgage on this property to fund lifestyle things. This appears to have a number of advantages for our situation, i.e no loan payments have to be made until the property is sold (or she passes away) and we can either take out lump sums or receive a steady cashflow or a combination of both which appears very flexible. We can even pay money back into the loan to reduce its balance. There is no potential for negative equity or recourse under the legislation and any residual value of the property goes to our estate for distribution, and in the mean time the property is expected to increase in value over time, which potentially leaves the property worth the same amount (in headline dollar terms) in future years, even though we have spent some of the equity now. It seems that this would allow us to "sell a bedroom" to fund lifestyle purchases without having to sell the whole house and thereby triggering a CGT event. My partner would probably have a CGT amount of around $100k (after the 50% CGT reduction and after a capital gains "paper loss" of $45k from the sale of another investment property) to be added to her rental property income and defined benefits pension, meaning a sizable chunk of real money would be paid should this CGT event occur, even though she has stopped working for an employer and is retired. Of course since the original mortgage has already been paid off the new loan would not become tax deductable even though it is an income producing property (unless the equity released was wholley spent on an income producing asset) but she has no loan repayments to anyway. The reverse mortgage would give access to some of the capital, and the interest rate seems no worse than if it was for any other no doc loan, as you don't have to substantiate any income to pay the loan as no payments are required to be made except when the property is sold or the property owner dies. I've made a comment on one of your previous videos about my thoughts of when a capital gain is not really a capital gain, because inflation is not taken into account when determining capital gains tax. So my theory is by not selling an investment property and instead taking out a reverse mortgage, you get the benefit of fractional access to the value of the investment property, not having to make any payments on the loan (nominal payments are capitalised) and the capital gains can is kicked along the road until you die and then what is left over is what your beneficiaries get, (which is money they haven't worked for in any event) so there is only an upside for everyone. Our other thoughts are to sell this investment property, she takes the capital gains hit, put the rest into super (splitting it between us both to maximise any concessions available) and then withdraw the money from super as either lumps sums or income streams, tax free, as needed. Advantages are not having to manage the property i.e. booking management, laundry, cleaning, maintenance, capital works, dealing with the latest governements short term thought bubbles affecting long term investment planning and the like. What are your thoughts?

Its absolutely crazy the government made things so complicate for elderly retirees and force retirees to pay big $ to get a finical planner to help them to make a decision! The government should make it very easy and simple for retirees if the government does care those retirees as they have always claimed, any citizens should get TAX FREE no matter what they get their income from, put a full Age Pension cap on $1.5 mil for asset test and $100k for income test anyone below those asset test entitle for full age pension, over cap Age Pension start to decrease!

Very informative. Thank you!

Ideally I want to max-out this but I cannot afford it.

Hi Luke. As always, another great video. Love your simple, straight forward, practical advice. Bought your book last week. You're my financial hero 😂... Keep up the great work 👍 Any chance of a future discussion about PSSap? I'm a PSS member (PSS so strict/limiting) needing to open another account

Firstly love your videos Luke. My question is : If you are in a Constitutional Protected Super Fund are you able to make personal contributions into the fund and then claim a tax deduction. Will be contributing around $100k into Fund through my salary this financial year , last year contributed around 60K. The reason i am asking is I have 2 investment properties that i intend to sell shortly one this financial year and the other next financial year. I am looking at a Capital gains this financial year of around $17k and next year of around 350k. The Super balance is only 800k at the moment so long way from the 1.9million cap. My understanding of the Constitutional Protected Super Fund is that there are no concessional contributions limits unless your balance is over 1.9 million so contributing my entire capital gains would be great to avoid paying income tax if this is allowed.

The liberal Morrison government did nothing for 10yrs in relation to public housing. The working class always get stung.

What if you only live for 5 years after the Pss pension kicks in and you've outlived your spouse, is there a lump sum for your children or is the money just wiped?

My partner and I own two investment properties, one in the ACT and one in Queanbeyan. We have to pay land tax on the ACT property which is more than the cost of rates. Investors get absolutely nothing for land tax, no services like they get for rates, it is simply a tax that the government (and the rest of the community) benefits from, but it is passed onto renters via an increase in rent, so thank renters for all this extra money to help support police and schools and hospitals and social housing and all the other expenses land tax pays for. Any poltical party could remove land tax, and the cost of rent would drop because the rental market is compeditive each time you go to rent out the property on a new lease, but the ACT government has land tax (or renters tax) built into their budget. Land tax is levied on investment properties regardless of the property value in the ACT. In NSW land tax is only payable for properties whose land is valued over $1M+. The Queanbeyan property has a land value of about $450K which means land tax is not payable and therefore the rent for the property is less than in the ACT for a comparable property. Owning and renting property is both an investment and a business. The only reason for supplying a rental property to the market is if there is a return on investment. If there is no return on investment then the money available for investment will be redirected elsewhere. The love affair people have with property is becuase they understand it and they can value add with sweat equity into it. You can't renovate a share portfolio, you add on an extra bathroom room to gold investments and you can't predict the value of EFT's anymore than you can predict if your ball will land on black in the casio. Ynless you are the owner of a business, do you as a silent investor really know anything about the business, or are you just relying on blind luck? I don't care what I invest my retirement saving in, as long as I don't lose those savings and then become a burden on society. We are self funded retirees who have worked hard all our lives to get what we have got, and now someone what's to take all that away from us?? Both the investment properties are owned outright, there are no loans and hence no expenses exceeding income, and hence no negative gearing, just income tax that we must pay. When we go to the sell the properties to fund our retirement we will have to pay another whack of tax if the capital gain discounts are abolished. So what's the alternative? Put money into superannuation? But there are caps on how much money can be put into superannuation. And how does this benefit renters? It won't because the limited housing supply will be soaked up by cash rich migrants and competition for fewer rental properties will put even more strain on the rental market. Renters can't just become owners, they don't have the cash or even interest to buy a property. Many renters rent because they don't want to buy even if they could afford to buy. Stamp duty and all those other costs like agents fee's could be more than a year or two's rent on a property and the renter may only want to stay six months in a certain location for whatever reason and not commit themselves to purchasing. We could end up like the US where private rentals are being sold to institutional investors like Blackrock. Report: Institutional Investors Will Own Over 40% of Single-Family Rental Homes by 2030. Our lives are already controlled by government and corporations who lobby government, do we really want to take away control of our finances even more? Superannuation funds are already bohemouths searching for oppertunities to invest your retirement funds, with slogans like, past returns are no guarantee of futuer returns and expect the returns to be negative every x number of years depending on how risky the investment is. When you are retired you don't have the ability or time to ride out negative returns without it severly impacting on your lifestyle, and besides, businesses "negatively gear"all the time, it's just writing off a loss form one business or investment against another investment or income that is making a profit. Negative gearing (for those in the early stage of an investment) effectively subsidises renters and gives them a roof over their head. The payback for investors is not seeing all of their capital gains taxed 10 or 20 years down the track. And remember, if you bought a 3 bedroom single bathroom house for $100K 30 years ago and then sell it today for $1M, the notional "capital gain" is $900K, you currently get a 50% discount on the capital gain so you are paying tax on $450k. Assuming you have no other income or offsets, your tax bill for that year will be around $250k. Meanwhile other 3 bedroom houses still cost $1M, so now you have $1M - $250K = $750k, so your house is not actually worth $1M but is worth $750K, all the rest has gone in tax and you can't rebuy your own house if you wanted to with the net proceeds. This isn't a capital gain, this in reality is a capital loss!! Capital gains tax is a con to make you pay more tax on something that you already own and have paid tax along the way to own as you paid if off over the years. You are paying real money for fictional paper gains. A three bedroom house is a three bedroom house regardless of whether ot not it has a dollar figure associated with it of $100 or $1M dollars. Buy and never sell until you have to, or untill you reach retirement and your tax rate is it's lowest and you have no intention of getting back into the business of owning and renting realestate.

We all should be public servants around the water cooler

Apologies if I have missed it. But do you need to notify the super fund of your intention every time you make a personal contribution? Let's say for instance, I wanted to do it every fortnight and pay in $1000, do I need to notify the Superfund every fortnight or can I just wait til near the end of tax year and say that I want the $26k to be taxed appropriately?

Spend your money by enjoying your life. You might not have it much longer.

Thanks mate

Very interesting video,very informative.

Am I the only guy watching. Lukes got a lot of good information!

My partner made a concessional contribution into Super last financial year. A large tax return has just been processed. Do we now put the amount the Super fund took out in tax back in concessionally, or non concessionally?

a great video, very informative, thanks

So, if there are multiple children in a testamentary trust, and they want to sell the assets I.e. property, can they do that? And if the beneficiaries never actually own the assets, what happens if/when they die? Also, is there any info you can give about the process of accessing those assets? Does it differ between trusts? E.g. how does a mechanism like a testamentary trust allow beneficiaries to withdraw money/assets and also protect against financial abuse/control by the trustee?

Great info. 👍

great advice again thanks fellas !

This question is never really answered. 300,000 superannuation pension account plus government pension equals approximately how much per year for 20 years ?

I retire at 66yrs and 8mths in July 2025. Can I use the concessional contributions before I turn 67yrs in Nov 2025 to claim a tax deduction even though I will be over 67yrs when I do my tax return in July 2026.

Tell those pensioners who find out after they privately invest their money that they have under "SCAM" concerning their pension. Where they find they have lose up to 40% of pension. At the same time they will still receive the full pension if they money is handled by their family. Both ways( investing) have the same meanings, except one will find themselves every fortnight with less pension while they're receive a full pension. Maybe a Queen Bannister should review this system while your neighbour receive full pension and you only less.

Hi Luke. Question - can you make contributions into your super fund and claim it as a concessional deduction when you’re not working?

In my opinion, it is foolish for the government to be crying about the national housing shortage and rental crisis, the skilled labor shortage! and no quick solution! …They should think deeply about providing a fairer system for the hard working retirees! After all, they have spent their whole lives to build this country, and they only have 20-30 years to live a decent final journey of life. The government and this country are eternally grateful to them, and the way you treat today's retirees is how you will be treated in the future. Respecting them today is respecting yourself. 1). The government should make the system very simple and easy for retirees, so that retirees will not have to heavily rely on professional financial advisors to take care of their life savings due to facing a very complex and difficult to understand retirement system, which has led to many retirees being scamed! 2). The government should adopt a universal pension system, and the maximum limit of government pension payments will remain unchanged, but the upper limit should be $100,000 per year, which is also based on the government's suggestion that hard working retirees should live a comfortable standard of living. In this way, the government will not lose any money, but will benefit the government, the country and retirees. If the government's upper limit is $100,000, by useing a couple as a example, for a couple, the government's current maximum age pension is $42,000 per couple. To get $100,000, that is, a gap of $58,000, these couples can return their rich assets to the economy in various forms, instead of spending them all (many retirees actully spent theie money on foreign economies, such as traveling there is little help to local Economy), or giving their assets to their children without flowing into the economy. Retirees can actually do the following if the government gives them a more relaxed age pension policy a) Reinvest assets into the economy instead of spending or giving them away. If they buy a house, they can immediately solve the current housing shortage problem. If they invest in a business, they can immediately help the country's employment... These actions do not require waiting for a long time for government red tape funding approval as they do now. b). If those older and most skilled retirees choose to return to work and earn extra income, they can return their skilled skills to the labor market and alleviate the current labor shortage that needs to be solved by a large number of immigrants.