Security of housing tenure key to determining pension amount

The $1.7 million quantity is related in two areas solely. Non-concessional contributions are prohibited as soon as your fund steadiness exceeds $1.7 million and $1.7 million is probably the most you possibly can switch from “accumulation” mode to “pension” mode once you resolve to begin a pension.

Due to COVID-19, my companion and I made a decision to place our tremendous into pension section, as we each have immune deficiencies and weren’t working on the time. My companion reaches pension age subsequent December, with most likely about $290,000 in tremendous. I’ll have about $530,000 at the moment, however I cannot attain pension age till 2028. Can I revert my tremendous again to accumulation mode, so my companion is eligible for some form of pension?

You’ll be able to commute all or a part of your tremendous from pension mode again to accumulation mode with out inflicting any Centrelink or taxation issues.

Nonetheless, it might be worthwhile getting some monetary recommendation first as a result of, based mostly on the figures you have got supplied, your companion could be below the thresholds for each the belongings and revenue take a look at and a greater end result could also be to commute the majority of your tremendous to accumulation mode however go away some in pension mode.

The adviser might crunch the numbers for you.

Loading

I’m dwelling in a home I purchased nearly 9 years in the past. I’m planning to upsize and purchase one other property to dwell in. If I hire the present property and dwell within the new property (and use the brand new property as the first residence for land tax functions), do I’ve to pay Capital Features Tax (CGT) when, say, I promote the outdated property in two years?

Julia Hartman, of accountants Ban Tacs, says that no matter what residence you cowl together with your major residence exemption for CGT functions, it is going to be the property that you just dwell in that will likely be exempt from land tax.

You might be allowed to decide on which property is topic to CGT and you do not want to make that selection till one property is offered. The catch is the opposite one will likely be uncovered to CGT.

In case your present residence has all the time been your major residence till you hire it and purchase the brand new one, the outdated residence’s price base will likely be reset to market worth from once you first hire it.

When you think about the prices of promoting in two years, you might discover that the adjusted price base may be practically as a lot because the sale value.

Noel Whittaker is the creator of Retirement Made Easy and quite a few different books on private finance. E mail: [email protected]