Centrelink states that any prepaid funeral/cemetery transactions do not have to be reported to them and that couples can pre-purchase up to the value of $24,000. Two years ago, we used some of our superannuation to put into place our prepaid affairs within Centrelink's allowed value; and within that we bought a prepaid cemetery internment plot. It includes four certificates of entitlement for us (husband and wife) and for our only son and a future partner if they so wish. Do you know if we are breaching the Centrelink conditions by pre-purchasing a family plot which includes our son? Or would that be viewed as "gifting" to our son?
A departmental spokesman says that a cemetery internment plot acquired by a pensioner for him or herself or their partner is an exempt asset. However, the exemption does not extend to internment plots bought for other people, such as a son and the son's future partner. The additional cemetery internment plots would either be counted as an asset if you have retained legal ownership of them, or would be considered to be a gift if ownership has been transferred to your son.
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I have an investment property on the Gold Coast, which was newly constructed in the current financial year. It has been rented from May 2017 onward. I made three separate trips to the property from Sydney (where I live) in relation to inspection, construction related matters and final handover. The first trips were prior to it being available for rent and would become part of the cost base but the last trip was after it was made available for renting and I am wondering whether I can still claim that trip as it was made prior to the budget changes. Can you please advise?
The legislation has not yet been passed – it was included in the May 2017 budget. I have no reason to think it will not pass, but it does apply to properties purchased after July 1, 2017. Therefore, as long as you have fulfilled the other requirements regarding travel expenses it should be deductible.
My dad receives the full pension but is still struggling to make ends meet. He has $10,000 in the bank. Is there any way I can give him some money each month without it affecting his pension? I want to make sure he is able to pay for heating, the rates etc (and have some dignity at Christmas time when it comes to buying presents for the grandchildren). I am a nurse with an average income, but can spare about $1000 or so every few months to help my lovely dad. Is this allowed?
The gifting rules are designed to stop wealthy people giving money away and then claiming welfare. You are certainly able to give your father small sums of money without affecting his pension. Of course, if somebody gave a pensioner a large sum of money, it could possibly raise their assets to a level where they may lose some pension. Obviously, that's not the case here.
I am 62 years old and have retired. I have just started a pension-based account. Am I allowed to deposit money into the pension account or would it be better to deposit the money in an accumulation account, or put it in a term deposit? Is there a limit on the amount I can deposit into my super? My balance in my pension account is less than $1.6 million.
Given that lack of access is not a problem at your age, I see no reason why the money should not be added to your superannuation. You cannot contribute to a pension account, which means it will need to be contributed to your accumulation account. After June 30, a person cannot make non-concessional contributions to the super if their total superannuation balance exceeds $1.6 million, but this should not affect you as your balance is less than that. Therefore, you will be subject to the normal limits which will be $25,000 a year for concessional contributions and $100,000 for non-concessional contributions.
Noel Whittaker is the author of Making Money Made Simple and numerous other books on personal finance. His advice is general in nature and readers should seek their own professional advice before making any financial decisions. Email: asknoel@fairfaxmedia.com.au.