Moving in with mum may add to land tax liability
I AM thinking of renting out my home and moving in with my mum. I also have two units that I pay land tax on. Will I have to pay land tax and capital gains tax on my home? I have lived in my home for 10 years.
There is no capital gains tax payable until an asset is disposed of, so moving out and retaining the property will certainly not trigger CGT.
You can also be absent from the home for up to six years without it losing its CGT exempt status provided you don’t claim any other home as your principal residence during that time.
Once you move out it will almost certainly be liable for land tax. The amount of this will depend on where you live and the combined value of your properties.
BEING one of those who lost their part pension and (quite valuable) pensioner concession card on Januar y 1, 2017, we read with some interest the mention in the recent Federal Budget, of the reissue of the card to people like us. Can you please confirm this is in train.
Our municipal council is hot on our heels seeking proof we are eligible for a PCC discount on our rates this year.
A departmental spokesperson has confirmed that from October 9, 2017, the Pensioner Concession Card (PCC) will be reinstated to around 92,300 former pension recipients, including 3600 Department of Veterans’ Affairs payment recipients.
The Government recognises that those whose pensions were cancelled on January 1, 2017, due to the rebalancing of the assets test, lost their entitlement to a range of concessions without any change to their income or assets. They will reinstate the PCC to maximise concessions for these people.
This change will help these people in accessing concessions offered by states, territories and private providers.
Consistent with the Health Care Card and Commonwealth Seniors Health Card they currently have, the PCC will be automatically reissued over time with an ongoing income and assets test exemption. Other eligibility requirements,
There is no capital gains tax payable until an asset is disposed of
such as portability conditions, will still need to be met.
These people will also retain the Commonwealth Seniors Health Card to ensure they continue to receive the Energy Supplement. The HCC will become redundant, and will be deactivated.
AT June 30, 2017, my allocated pension balance was $1,654,000. I understand that I have until June 30, 2018, to withdraw $54,000. Can the regular “pension” payments count towards this total, leaving me to make a smaller additional withdrawal?
There are two separate requirements – as at June 30, 2017, your balance should be no more than $1.6 million in pension phase and you also have a requirement to draw the minimum pension in the current year. They are two separate issues, which means your pension can’t count for the amount you need to withdraw.