Offset account the best place to park spare cash

AM I better off to save my spare cash in an offset account or a savings account?

If you leave your spare cash in a savings account, you will earn at best 1 per cent or 2 per cent interest and lose a chunk of it in tax. Money invested in the offset account earns you the same effective rate (after tax) as you are paying on the loan. This is probably about 5 per cent. The offset strategy is miles better.

IF I own my home as the sole titleholder and my spouse uses it to run her business, would I be liable for capital gains tax when I sell the property?

Obviously, this is something to discuss with your accountant, but the crucial element is that you as the sole owner have not used the property to produce income. Just don’t charge her any rent, or any share of outgoings on the property.

I OWN a company and pay myself $90,000 a year plus 9.5 per cent super. Can I get my company to pay me $90,000 plus $25,000 super instead of just 9.5 per cent?

Total concessional contributions from all sources cannot exceed $25,000 a year. Therefore, your company could increase its contribution to $25,000 a year, which would mean, of course, that you would not be allowed to make any more concessional contributions in that year.

MY wife is on a temporar y permanent visa and, as such, can’t claim any benefits – also, she is not of pension age. I put it to Centrelink that this is unfair to pay me half the married rate so they did an about face and put me on the single pension rate. However, now that my wife is getting $900 a fortnight in wages I just wondered how this would be assessed and applied by Centrelink. Would Centrelink use the rules for a married pension or a single pension to assess me? It seems to depend on who you talk to or who you complain to.

A departmental spokesperson says there are exceptions that allow for a member of a couple to receive the single rate of payment. In deciding whether or not to apply this exemption, Centrelink will consider whether there is financial difficulty as a result of a couple’s circumstances. If a person is receiving this exemption and their circumstances change, Centrelink will need to determine if the exemption should continue to apply. If it is determined that the exemption

Centrelink will consider whether there is financial difficulty

should no longer apply, then a person is assessed as a member of a couple, which includes being paid a couple rate of payment, and being subject to the couple income and assets test. Individuals should contact Centrelink if they would like to know more about this exemption. People receiving social security payments are responsible for accurately updating Centrelink when their circumstances change, including partner income. Failure to notify Centrelink of a change may result in a penalty.

Noel Whittaker is the author of Making Money Made Simple and other finance books. His advice is general in nature and readers should seek their own professional advice before making any financial decisions. Email: noel@noelwhittaker.com.au