COVID-19 Help For Individuals

COVID-19 Help For Individuals

Here are 9 measures to help you. Let’s call them the COVID-19 help for individuals.

COVID-19 Help for Individuals

This crisis hits all of us, but some of you a lot harder than others. Here is what is out there to help you.

1 – First Economic Support Payment

$750 to anybody residing in Australia and already receiving an economic support payment listed below. This includes any new recipients who are eligible by 13 April 2020. Payments are made from 31 March onwards by Services Australia or DVA and are automatic, so don’t require an application.

Support payments that qualify are:

Young – ABSTUDY (Living Allowance), Austudy and Youth Allowance.
Unemployed – JobSeeker Payment (formerly Newstart Allowance).
Family – Parenting Payment, Family Tax Benefit, Double Orphan Pension, Bereavement Allowance, Farm Household Allowance, Partner Allowance, Widow Allowance and Carer Allowance.
Aged – Age Pension, Wife Pension, Wife B Pension, Pensioner Concession Card holders and Commonwealth Seniors Health Card holders.
Disability – Disability Support Pension and Carer Payment.
Veteran – Veteran Service Pension, Veteran Income Support Supplement, Veteran Compensation payments (including lump sum payments) War Widow(er) Pension and Veteran Payment, Veteran Gold Card holders, DVA PCC holders, DVA Education Scheme recipients, Disability Pensioners at the temporary special rate and DVA Income support pensioners at $0 rate.
Other – Sickness Allowance and Special Benefit.

2 – Second Economic Support Payment

Anybody eligible for a support payment as of 10 July 2020 will receive a second payment of $750 – applying the same rules as for the first payment – provided they do not receive the Coronavirus Supplement with their payment. As before payments will be automatically made by Services Australia or DVA and don’t require an application. Payments will be made from 13 July onwards.

Estimated cost: $4b

3 – Easier to Apply For JobSeeker and Youth Allowance

Applying for the JobSeeker and Youth Allowance for jobseekers has been made easier and the circle of potential recipients expanded – so more will qualify. From 25 March 2020, permanent employees who have been stood down or lost their job as well as people caring for someone infected or in isolation as a result of contact with Coronavirus will be eligible.

This also applies to sole traders and self-employed people, which we will cover under Business.

Applicants don’t need to pass the assets test. And usual waiting periods – Ordinary Waiting Period, Liquid Assets Waiting Period, Seasonal Workers Preclusion Period and Newly Arrived Residents Waiting Period – don’t apply. And last but not least there is currently no requirement to show an Employment Separation Certificate, proof of rental arrangements and verification of relationship status.

4 – JobSeeker Supplement Payment (“Coronavirus Supplement”)

Anybody receiving the support payments listed below will receive a ‘coronavirus supplement’ of $550 per fortnight from 27 April 2020 onwards. Payment is automatic, doesn’t require an application and is in addition to any support payments. The coronavirus supplement is taxable income.

Support payments that qualify are:

Young – ABSTUDY (Living Allowance), Austudy and Youth Allowance.
Unemployed – JobSeeker Payment (formerly known as Newstart Allowance).
Family – Parenting Payment, Partner Allowance, Widow Allowance and Farm Household Allowance.
Other – Sickness Allowance and Special Benefit.

Estimated cost: $14.1b

5 – Reduction in the JobSeeker Partner Income Test Taper Rate

Couples who lose their principal income with one partner still working might receive a higher JobSeeker payment thanks to a lower taper rate.

The JobSeeker Payment Partner Income Test taper rate will reduce from 60 cents to 25 cents from 27 April 2020.

Usually, any partner income over $994 per fortnight reduces a person’s JobSeeker payment by 60 cents, resulting in a cut-out at $1,858.80 per fortnight. This will reduce to 25 cents from 27 April 2020, resulting in a new cut-out at $3,068.80 per fortnight.

6 – Exemption from Mutual Obligation

Usually recipients of support payments need to meet their mutual obligation. This includes attending and reporting certain appointments and activities. Failure to do so often results in suspension of payments. During the crisis, no payments will be suspended for lack of attendance or reporting.

7 – JobSeeker Rights Expanded

Under the new measures, jobseekers can request to do face-to-face job interviews and training online. Job Plans now only require four job searches a month (or fewer, at provider discretion). Work for the Dole and other group activities that cannot be delivered online are suspended.

8 – JobKeeper 

This one first depends on your employer offering you a JobKeeper payment. But then the ball is in your court. You can accept but you don’t have to.

To accept you sign the Employee nomination notice that your employer will ask you to sign. Your employer can’t apply for your JobKeeper payment without your consent.

If you have two or more employers, you can choose which employer is to receive the JobKeeper payment for you. With one exception – if one employer employs you part- or full-time and the other just offers you casual employment, then you can only receive the JobKeeper payment from your part- or full-time employer.

The Jobkeeper Payment is ordinary income for social security purposes, so is included in the income text for any income-tested support payments. So if you receive Jobkeeper, you will probably not qualify for JobSeeker.

Estimated cost: $130b

9 – Work-Related Expenses

You can claim more work-related expenses more easily during the COVID-19 crisis. Here is the ATO fact sheet.

From 1 March until at least 30 June, you can claim 80 cents per work hour for all your running expenses, rather than having to prove actual costs. If you and others (spouse, children, flat mates etc) all work from your home, you can all claim 80 cents per work hour each. And you don’t need to have a dedicated work area while the crisis lasts. This is the so-called shortcut method.

Alternatively – as always – you can claim 52 cents per work hour for heating, cooling, lighting, cleaning, office furniture etc, Plus: Work-related portion of actual costs for phone, internet, computer supplies and stationery, Plus: Decline in value of your computer, laptop or ipad.

Or  – as always – you can claim the work-related portion of all your actual running expenses.

You can only claim actual costs if you have incurred the expense, have a receipt and have not been reimbursed. 

Pre-COVID-19 Assistance Measures

In addition to COVID-19 measures, there are still the assistance packages that were there before COVID-19, including the Commonwealth Rent Assistance and Family Tax Benefit part A or B.

 

help for retirees

COVID-19 Help For Retirees

Your super is down – but help is coming. Here is Australia’s COVID-19 help for retirees.

COVID-19 Help For Retirees

COVID-19 has hit your super hard. It hit everybody hard. To help you, there are 5 measures to get you through this. 

1 – Early $20,000 Access To Super

From 20 April 2020 onwards you can ask the ATO for an early release of your super. If approved, you can access $10,000 by 30 June 2020 and another $10,000 between 1 July and 24 September 2020.

You will qualify, if you meet at least one of the following four conditions:

1 – You are unemployed; or

2 – You are eligible to receive social security payments. To be more precise, you are eligible to receive job seeker payments, youth allowance for jobseekers, parenting payment, special benefit allowance or farm household allowance; or

3 – You were made redundant or your working hours were reduced by 20% or more on 1 January 2020 or thereafter; or

4 – You are a sole trader and your business was suspended or had at least a 20% reduction in turnover since 1 January 2020.

2 – 50% Reduction of Minimum Pension Payments

You can reduce your minimum pension payments by 50% this and next financial year. So 2019/20 as well as 2020/21.

If you have already withdrawn more than 50%, then you can contribute it back into super if you satisfy the work test before your contribution.

3 – Increase of Work Test from 65 to 67

This is still in the pipeline and not yet law. The age for the work test is to increase from 65 to 67.

Once this is law, it means that while 65 and 66 the work test doesn’t apply to you anymore. You can contribute surplus cash back into super, irrespective of whether you work or don’t.

4 – Reduction of Social Security Deeming Rates

It has become much easier to qualify for the age pension. And this is for two reasons..

1 – The value of your share portfolio in super has probably gone down, and so it will get easier to pass the asset test.

2 – The deeming rates are now 0.25% and 2.25% – significantly lower than what they were before – so it will be easier to pass the income test.

5 – $750 Double Dip

If you were on an age pension between 12 March to 13 April 2020 and didn’t receive any other support supplement, you should have received two payments of $750.

Does this make sense? If you get stuck, please give me a call on 0407 909 779 – Heide.

MORE

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Cash Your Super Before You Die

 

Disclaimer: numba does not provide specific financial or tax advice in this article. All information on this website is of a general nature only. It might no longer be up to date or correct. You should contact us directly or seek other accredited tax advice when considering whether the information is suitable to your circumstances.

Liability limited by a scheme approved under Professional Standards Legislation.

 

minor benefit rule

Minor Benefit Rule

The minor benefit rule is the one exception that turns a non-deductible contribution into a deductible one. 

Minor Benefit Rule

When you make a donation and you pay way more than the minor benefit you get back, then you obviously did this to support the charity. And that should be rewarded through a tax deduction. This is the essence of the minor benefit rule.

The tricky point is what makes a benefit a minor benefit. What means minor? That is the point the entire rule evolves around.

Recap

Here is a quick recap in case you haven’t read Tax Deductible Donation.

A donation is either a gift or a contribution. A gift is tax deductible if it meets the six conditions listed in s30-15 ITAA97 and TR 2005/13.

A contribution is usually not tax deductible, but there are two exceptions – the general deduction in s8-1 ITAA97 and the minor benefit rule. 

The general deduction in s8-1 (1) ITAA97 allows you to claim a tax deduction whenever you pay for something to gain assessable income. To get brand exposure or to buy donor data for example.

The minor benefit rule in s30-15 ITAA97 allows you to claim a tax deduction for a contribution if your contribution qualifies as a tax deductible gift without being a gift and – in addition – meets five other conditions.

Minor Benefit Rule

For your contribution to be tax-deductible after all, it needs to pass two tests. It needs to pass the test for a tax deductible gift. That is the first test. Let’s call it the gift test.

But instead of being a gift – the first condition for being a tax-deductible gift – it needs to pass the additional five conditions of the minor benefit rule. This is the second test.

Gift Test

The contribution needs to be LIKE a tax-deductible gift …apart from the fact that it isn’t a gift. So it must meet all the conditions a gift has to meet per s30-15 ITAA97 and TR 2005/13, except the first one about receiving nothing in return. Roughly speaking, a gift is tax deductible if it meets the following conditions. It must be

1 – a gift – skip this one – a contribution fails this one by definition;
2 – of money or property;
3 – of sufficient value;
4 – made voluntarily;
5 – with a tax receipt;
6 – to a recipient with DGR status.

This is the first test.

Minor Benefit Rule

The second test is passing the minor benefit rule. To pass the minor benefit rule:

1 – You must be an individual and not a company, trust or partnership.
2 – The event must be a fundraising event or charity auction.
3 – If you claim the price of a ticket, you can only claim up to two tickets.
4 – You must only receive a minor benefit in return for your contribution.
5 – The relevant charity must run less than 15 events of this type per year.

Minor 

The core essence of the minor benefit rule is that the benefit you receive is only…MINOR. The thinking is that if you get way less than you paid for, then you must have done this to support the charity. And that should be rewarded with a tax deduction. 

But what is a minor benefit? A benefit is minor if it is worth $150 or less and you pay at least 5 times more than what it is worth. So there are two criteria – market value and payment.

Market Value

The market value of the benefit must be $150 or less. 

This is important. It means that whenever you buy something at a charity auction worth more than $150, the auction item won’t qualify as a minor benefit. The same applies to the tickets for a fundraising event. If it is worth more than $150, no minor benefit.

But remember this is not about what you actually pay for the ticket or item. It is about what it is worth – the market value of your ticket to the event. And the market value of the auction item you successfully bid for.

Payment

You must pay at least 5 times more than its market value.

And this is just as important. It means that if the venue charges $100 per head, then you must pay at least $500 for the ticket for it to qualify as a minor benefit. And if an auction item is worth $50, you must pay at least $250 for it.

The argument is that if you pay 5 times more for what it is worth, you clearly pay the money for other reasons than the benefit you get back. Your intentions are clearly altruistic.

How To Determine Market Value 

A benefit is worth its market value, which is what you would have had to pay for the same good, service or event on the open market. And if there is nothing else like this, then a similar or comparable good, service or event (price or market comparison).

And if it is impossible to make a reasonable price or market comparison, then the market value is assessed based on cost. Take the actual cost plus notional costs plus a certain profit margin and you get the market value (cost-based approach). 

So the value of a benefit is assessed based on market value or cost. Since it is the charity issuing the receipt, they are the ones that need to ultimately work this out. 

Subsidised Benefits

What happens if some benefits are subsidised and the charity didn’t actually pay for these? Makes no difference. Any benefit is assessed based on its market value or cost, even if part or all of the benefit was actually subsidised by another donor.

Let’s say a donor picked up the tap at the charity Gala dinner. So the charity only had to pay $50 per meal, but not the additional $60 per head for free drinks. What is the market value of the benefit received? The answer is $110.

Or another donor donated a range of items for the charity auction. The minor benefit rule still uses the actual market value, despite the fact that the charity paid nothing for these items.

Even if everything was donated – venue, meals, drinks, MC and auction items – it would still be the market value of all this that would go into the calculation. The fact that the charity didn’t pay for some of the benefit doesn’t change the market value or notional cost of that benefit.

Free Event

What happens if attendees don’t pay for the ticket to attend and are just asked for a donation, which they are free to make or not?  Then the entire payment is a donation and hence tax deductible as such. In this case you don’t need to worry about the minor benefit rule.

Splitting

The charity can’t split the ticket into event and gift. It can’t say $150 of the ticket is for the Gala dinner and the other $350 are a gift. Para 149 in TR 2005/13 is very clear on that one,

Para 149: Where DGRs conduct fundraising events such as celebrity dinners, gala events, $1,000-a-plate dinners, and so on, the price of a ticket cannot be notionally split between the value of the material benefit received, that is, the meal, and the amount which represents a gift. Where attendees are to pay a given sum of money in order to attend a function, no part of that sum can be considered a gift. This is so even where the cost of attendance is well in excess of the value of the meal received.

But the charity can charge the meal at market value and then ask for a donation. Para 151 in TR 2005/13 even suggests that,

Para 151: However, a fundraiser can offer tickets to a function for an amount which approximates its market value, and solicit additional optional donations from potential attendees. The ticket cost will not be deductible as a gift. However, the additional optional donations will be tax deductible.

Example

After all this, let’s do an example. 

Let’s say there is a Gala dinner followed by a charity auction, which Bob attends. Bob pays $500 for the dinner worth $100 and he successfully bids $1,000 for a golf bag worth $100 and $500 for wine worth $50.

In that case Bob can claim 3 deductions. He can claim $400 for the ticket, $900 for the purchase of the bag and $450 for the purchase of the wine. 

FBT

And last but not least, just in case it confuses you. FBT also has a minor benefit rule. But it is a case of same name – different rule. The minor benefit rule for FBT purposes has nothing to do with the minor benefit rule for contributions to charities.

For FBT purposes, benefits that are less than $300 in notional taxable value count as minor benefits and hence are exempt from FBT. But that is FBT land and has nothing to do with tax deductible contributions.

 

MORE

Tax Deductible Donation

COVID-19 Help For Retirees

Cash Your Super Before You Die

 

Disclaimer: numba does not provide specific financial or tax advice in this article. All information on this website is of a general nature only. It might no longer be up to date or correct. You should contact us directly or seek other accredited tax advice when considering whether the information is suitable to your circumstances.

Liability limited by a scheme approved under Professional Standards Legislation.

Tax Deductible Donation

Tax Deductible Donation

When can you claim a tax deduction for a donation you make? What makes a donation a tax deductible donation?

Tax Deductible Donation

The short answer is: You can claim a deduction, if you have a tax receipt from an entity with DGR status that says it is a tax deductible donation.

The long answer is more complicated and goes like this: A tax deductible donation is either a tax deductible gift or it is a contribution that falls under s8-1 or the minor benefit rule.

If a charity has given you a receipt that says tax deductible gift, you can stop here. You got your tax deductible donation.

But if the charity hasn’t given you a receipt yet and there is a question mark whether you will, then the following is for you.

Donation

A donation is any money or property you voluntarily give to a charity – be it a gift or a contribution. 

DONATION = GIFT + CONTRIBUTION

If you get nothing in return, your donation is a gift. If you get anything in return, your donation is a contribution.  

So every donation of money or property is either a gift or a contribution. Gift v contribution – that is the terminology the legislator uses in Div 30 ITAA97. The problem is that the ATO doesn’t. They talk about ‘gifts or donations’ in D9 of an Individual Tax return as well as on their website. Messy terminology. Don’t let that confuse you. The end result is the same.

Tax Deduction

Why does it matter whether your donation is a gift or a contribution? It matters for tax purposes. It matters if you want to claim a tax deduction since different rules apply depending on whether something is a gift or a contribution.

Gift

A gift is tax deductible if it meets the conditions listed in s30-15 ITAA97 and TR 2005/13. There are many fine nuances in these rulings, but roughly speaking, a gift is tax deductible if it meets six conditions. It must be

1 – a gift;
2 – of money or property;
3 – of sufficient value;
4 – made voluntarily;
5 – with a tax receipt;
6 – to a recipient with DGR status.

Contribution

A contribution is not deductible since you receive something in return. You are basically buying something, even if it is for a bad price. And so there is no tax deduction. But … there are two exceptions – the general deduction in s8-1 ITAA97 and the minor benefit rule. 

General Deduction s8-1

The general deduction in s8-1 (1) ITAA97 allows you to claim a tax deduction whenever you pay for something to gain assessable income. To get brand exposure or to buy donor data for example.

Minor Benefit

Whenever you get a benefit in return, you didn’t give a gift. But if this benefit is so minor in comparison to what you pay – if you pay way above market value – then you must have done this to support the charity.  

The dinner and auction was just the side show. It is a minor benefit in comparison to what this is about. This is the reasoning behind the minor benefit rule.  

Minor Benefit Rule s30-15

The minor benefit rule in s30-15 ITAA97 allows you to claim a tax deduction for a contribution if your contribution passes two tests.

The contribution needs to be LIKE a tax-deductible gift …apart from the fact that it isn’t since you received something in return. So it must meet all the conditions a gift has to meet apart from being a gift. That is the first test.

The second test is that the benefit must be minor. To pass there are five conditions about you, the charity and the event.

# 1    Individual

You must be an individual. Only individuals can claim a tax deduction under the minor benefit rule, but companies, trusts and partnerships can’t. 

# 2   Fundraising Event or Charity Auction

The minor benefit rule only applies to fundraising events and charity auctions. So it doesn’t apply – for example – to the cost of merchandise you buy through a charity website.

# 3    Tickets

If you claim the price of a ticket, you can only claim up to two tickets. 

# 4   Less Than 15 Similar Events

The charity running the event must run less than 15 events of this type per year.

# 5   Minor Benefit

This is the big hurdle. Whether a benefit is a minor benefit depends on its market value and what you pay for it.

The benefit you get must be worth $150 or less. And what you pay must be at least 5 times more than what you paid. These are the two deciding factors – market value and what you pay.

Market Value

The market value of the benefit must be $150 or less. If it is worth more than $150, no minor benefit. So if the ticket or auction item is worth more than $150, it doesn’t qualify as a minor benefit. 

But remember this is not about what you actually pay for the ticket or item. It is about what it is worth – the market value of your ticket to the event. And the market value of the auction item you successfully bid for.

What you Pay

You must pay at least 5 times more than its market value.

And this is just as important. It means that if the meal is worth $100 per head, then you must pay at least $500 for the ticket for it to qualify as a minor benefit. And if an auction item is worth $50, you must pay at least $250 for it.

The argument is that if you pay 5 times more for what it is worth, you clearly pay the money for other reasons than the benefit you get back. Your intentions are clearly altruistic.

—–

Here is more about the minor benefit rule. If you get stuck, please call or email us. There might be a simple answer to your question.

 

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Disclaimer: numba does not provide specific financial or tax advice in this article. All information on this website is of a general nature only. It might no longer be up to date or correct. You should contact us directly or seek other accredited tax advice when considering whether the information is suitable to your circumstances.

Liability limited by a scheme approved under Professional Standards Legislation.

Commonwealth Seniors Health Card

Commonwealth Seniors Health Card

The Commonwealth Seniors Health Card (CSHC) is to help you cover your medical expenses while self-funding your retirement.

Commonwealth Seniors Health Card 

Funding your retirement is one thing. There is super, maybe the age pension, maybe some personal savings.

Paying your medical expenses however is a different story. Nobody thinks of medical expenses to begin with. We all imagine our retirement to be spent on golf courses, cruise ships and overseas trips. But with time medical bills will enter the scene. And this is when the Commonwealth Seniors Health Card (CSHC) comes into play.

Self-Funded Retiree

The Commonwealth Seniors Health Card (CSHC) is aimed at self-funded retirees, who don’t claim the age or DVA pension – even though they are of pension age – and instead just live off their super.

It is to help self-funded retirees with their medical bills. The government’s hope is that this additional support will allow you to stay self-funded, even as your medical bills increase with age. 

Concessions

The CSHC comes with a range of possible concessions.

It might give you cheaper access to Pharmaceutical Benefits Scheme (PBS) prescription items and increase your benefits via the Medicare Safety Net. You might receive an energy supplement and receive other benefits from state governments and businesses. And there is a small chance that doctors agree to bulk-bill you as a CSHC holder.

The Centrelink / Department of Human Services website has more information about possible concessions.

Conditions

There are four conditions to qualify for the Commonwealth Seniors Health Card.

1  –  You must be of pension age, which starts somewhere between 65 and 67 depending on your date of birth;

2 –  You must be self-funded and not receive any income support from Centrelink or DVA (Department of Veterans Affairs);

3  –  You must be an Australian resident currently living in Australia;

4  –   Your annual adjusted taxable income (ATI) must meet an income test.  

The good news is that there is no asset test. So this is different to the age pension.

Threshold

The threshold for you annual adjusted taxable income (ATI) is indexed and hence changes each year. In rough numbers, your ATI must be less than $55k when single and less than $90k as a couple. If you live apart as a couple due to illness, respite care or prison, then your combined ATI is about $110k. 

Indexation

From 2001 until 2014 the ATI thresholds were not adjusted to inflation. And as a result, less and less self-funded retirees qualified for the CSHC.

With time this would have pushed the CSHC into oblivion. So in September 2014 indexation came back. And the income thresholds have been indexed every September ever since.

So you would think that increasing the income thresholds would make more Australians eligible for the CSHC.

But the indexation is offset by another change in the opposite direction. Since January 2015 deemed income from superannuation in pension mode is now included in your ATI and hence makes it harder to pass the income test. 

Adjusted Taxable Income

Your adjusted taxable income (ATI) is your

1 – taxable income plus
2 – foreign income not taxed in Australia, plus
3 – total net investment losses, plus
4 – employer-provided fringe benefits (if exceeding $1,000), plus
5 – reportable super contributions and plus
6 – any deemed super income from a taxed source.

Let’s go through these one by one.

1 – Taxable income

Your taxable income is your gross income less deductions. Even if you don’t have to lodge a tax return, you might still have taxable income.

2 – Foreign Income Not Taxed in Australia

This relates to income you receive from outside Australia for which you don’t pay Australian income tax. 

3 – Total net investment losses

Your total net investment losses are your net losses from rental-properties and from financial investments. You add these negatively geared losses back to your adjusted taxable income. 

4 – Employer-Provided Fringe Benefits

Employer-provided fringe benefits include benefits such as cars, loans, housing, and health insurance. But you only add them to your ATI if they exceed $1,000.

5 – Reportable Super Contributions

Reportable superannuation contributions are not the compulsory 9.5% superannuation guarantee (SG) contributions your employer might have paid for you. It also doesn’t include the non-concessional contributions you might have paid out of your after-tax income.

Instead, it is the salary sacrifice you might have paid into your super fund as well as any additional super your employer might have paid for you in addition to SG.

6 – Deemed Super Income from a Taxed Source

Super benefits can come from an untaxed or taxed source. Most Australians only have super from a taxed source. You usually find untaxed sources only among retired former government employees.

Super benefits from an untaxed source are subject to tax and therefore already part of your taxable income and hence ATI. So there is no need to deem any income. 

Super benefits from a taxed source while aged 60 or over are tax-free, however. As a result the actual payments are not included in your taxable income. And this is where deeming comes into play.

Your ATI includes a deemed amount of pension income for any pensions started post 2014. So not the actual payments, but a deemed amount.

New applicants on or after 1 January 2015 include deemed super income based in their adjusted taxable income.

This is a radical change, but it only applies to new applicants applying for the CSHC on or after 1 January 2015 and new pensions.

Pre-2015

This deeming of pension income only applies to CSHC cards issued and pensions started on or since 1 January 2015.

If you have been holding your current CSHC card since 31 December 2014 or earlier, then these pension benefits still fall under the old rules. Meaning there is no deeming of super income.

However, this grandfathering only applies to the actual pension in place as of 31 December 2014. If you start a new pension on or after 1 January 2015, then this new pension will be subject to the new rules, even though you might be a pre 2015-CSHC holder. 

Calculation

Deeming means that the actual amounts withdrawn from your super account are not taken into account for the ATI. Instead deeming assumes a standard rate of return on your super pension assets. Your actual returns or pension payments might be different from this standard return.

The calculation uses the asset value of your super pension assets applying a set interest rate. This might sound familiar. The age pension also deems super income since 1 January 2015.

Overseas Travel

You can spend up to 19 weeks overseas without losing your current CSHC. If you are away for longer, you need to apply for a new card.

This is important if you held your CSHC since pre-2015. A new application would break the grandfathering rules and would mean that your new card would become subject to the deemed income rules we will discuss later.

If you have any questions, please reach out to us. There might be a simple answer to your query.

 

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Disclaimer: numba does not provide specific financial or tax advice in this article. All information on this website is of a general nature only. It might no longer be up to date or correct. You should contact us directly or seek other accredited tax advice when considering whether the information is suitable to your circumstances.

 

Liability limited by a scheme approved under Professional Standards Legislation.