No problem!

There are benefits to holding fixed-income assets in tax-deferred retirement funds rather than taxable accounts. If you're unsure about navigating the market, it's wise to seek guidance from a financial advisor.

Working with an investment advisor is a smart move, especially for those nearing retirement. I’ve been collaborating with a coach for a while now, and it has paid off significantly-I’ve made over $800K in a relatively short period.

Who is your advisor? I’m looking for a more strategic approach to investing my savings.

I consistently recommend Rebecca Lynne Buie as my top choice. She is well-known for her expertise in financial markets and has an impressive track record. I highly endorse her services.

I did a quick search on Rebecca Lynne Buie, and her website came up right away. I’m impressed with what I’ve seen so far and will be scheduling a session with her soon.

Best of luck!

What if you sold an investment with a large capital gain in that year?

@@SuperGuyAu If you had an investment that large your pension would probably be zero due to the assets test. And you'd have had poor financial advice along the way to allow that situation to occur. Or else suck up your good fortune and stop claiming poor person's benefits.

Current returns around 8% or more on superfunds. That’s $36k per annum. When the super balance gets below $399,000 for a married couple you can then get state pension of around $45k. With the $399,000 in super you need to draw 5% per annum which is $20k. So at that point you would be on $65,000 per annum which is not too bad I reckon

My pleasure!

Stop dreaming, end of story

@peteb4148 ok sheep

Thanks!

haha

preservation age is 60 and fulfil one of the condition of release.

This is a standard fee for personal financial advice in Australia. I would be very cautious of any financial advisers that charge significantly less than this, as their advice is likely to be conflicted and they are probably getting remunerated through the products they recommend. Additionally, unlike the large majority of the industry, we never charge any ongoing fees. We charge a one-time fee for advice only. I would consider our service offering to be quite reasonable, but it's not for everyone.

no, not even reportable when doing tax return

@@Woodland26 Ok, I don't understand then. If they have to deal with Centrelink, what are they trying to find out?

TTR pension income is not assessed for tax purposes, but the balance is 'deemed' to earn an income for Centrelink purposes.

You're welcome!

Generally yes, provided it's at least partially exempt from CGT under the main residence exemption.

I agree. The government is essentially a looting operation

Thank you for the kind comments. No, it does not need to be recorded at all and will not affect the taxation of any other sources of taxable income.

If you have no other income besides your pension, it is tax free.

Up to TBC of course ;) Then remainder is stuck in accumulation phase where it still gets taxed at 15% (which isn't much better than the 16% rate on income between $18,200 and $45,000). And the 'income stream' could be SABP for a SMSF, or an annuity product (which might be of benefit if eligible for part or full SP). Probably is that simple for 95% of people, but financial advisors generally work for the other 5% who have more complex situations (or whatever part of the 95% who have simple situations but can't be bothered to learn enough to DIY their financial and tax planning).

@ if you put it in a pension fund, there is no tax

@@wealthelife all those acronyms. I’ve no idea what you have said.

$22,575 with low income offset kzbin.info/www/bejne/aGjci5qhaKaFeLcsi=PVJaF9BSL9qW1wqg

No problem! Thanks for watching!

Yes/No/Maybe... Sell the property, invest the proceeds into super, and purchase a pension/lifetime annuity? No tax on pension income, and a portion of the purchase price is not counted towards the assets test (for potential AP eligibility)? Depends on your super balance, age, work status, CGT that would be realized selling the rental property etc. etc. So, the usual 'it depends -- get personal advice from a financial adviser or tax accountant' mantra. General advice/info is, well, general... ;) Alternatively, use the rental income to purchase shares (or another property) and use leverage so get negative gearing so end up with reduced taxable income and increased long term capital gains. Gift it to someone on a low tax bracket (eg. a non-working married daughter) who won't pay much income tax on the rental income. After 5 years the 'deprived asset' also won't count towards the AP asset test any longer -- so you could get some AP and the daughter get up to 18,200pa rent income tax free... Transfer the property into a family trust and distribute income in the most tax effective way. Donate the property to charity. Charge less rent (so have less net rental income) So many ways to "reduce tax on rental income in retirement" ;)

Cash or deductions. Depending on your income, you can also keep an accumulation super account open and deposit into it at 15%

Take out a small loan against the property. The loan is tax free, to be used how you want, and the rent repays the loan and is tax deductible.

@@fredfred4086 Well technically no -- while the money obtained as a loan is tax free, the interest on the loan is only tax deductible if the loan was used to buy an investment that produces investment (taxable) income. You can't just take out a separate loan secured against an existing property and spend that loan proceeds, then claim the loan interest as a tax deduction against the rental property income (rent). Claiming the interest on a personal use loan as a tax deduction would get caught as tax avoidance if you ever got a tax audit and they asked to show what the purpose of the loan was, to determine if the interest on that loan was a legitimate tax deduction or not. You might as well say to ask the tenants to pay some of the rent as cash in hand and not declare it -- reducing tax via tax avoidance is easy, but illegal. Tax minimisation is a bit more complex.

Assuming you can make a concessional contribution, contribute the rent to superannuation, claim a deduction and it will only be taxed at 15%.

30 K as of this financial year

Correct 👍​@@inovatas

@ thank you muchly.

$25 - $30k over the last five years. It has incrementally increased.

You can contribute up to 30k (including employee contribution) Example - you earn 100k/yr plus super. your employer contributes 12k, and you can contribute 18k pre tax of your own money.

Very kind words, thank you! I just hope we can continue living up to this standard haha!