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Australian Pension

Australian Pension

Old May 19th 2018, 11:02 am
  #46  
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Default Re: Australian Pension

Originally Posted by Kiwipaul
Once you hit retirement age (currently 65 1/2 years) you can claim SAPTO tax free allowance which means that you can earn $28,974 (normally $18,200) before you start paying any tax at all. This excludes any Australian Super you receive which is tax free.
https://www.ato.gov.au/Individuals/I...r-Australians/
Yes, SAPTO and the Beneficiary Tax Offset are available for people who've reached age pension age, but eligibility is tied to receiving certain government benefits and also to your income. Not everyone who's reached age pension age will qualify.
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Old May 19th 2018, 11:05 pm
  #47  
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Default Re: Australian Pension

Originally Posted by spouse of scouse
Yes, SAPTO and the Beneficiary Tax Offset are available for people who've reached age pension age, but eligibility is tied to receiving certain government benefits and also to your income. Not everyone who's reached age pension age will qualify.
Yes I agree about income because if you earn over $50,119 (for a single person) SAPTO cuts out, but I cannot find anything about having to be in receipt of a gov benefit.
Also it's not clear to me whether this income has to be earned in a job or does investment income count as well. It is designed to encourage people to stay in work beyond retirement age.
In fact SAPTO and LITO (low income tax offset) increases the income before tax has to be paid to $32,279.
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Old May 20th 2018, 12:17 am
  #48  
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Default Re: Australian Pension

You do have to meet the age and residency requirements of the Age Pension to qualify for SAPTO but you don't actually have to be in receipt of a government benefit to get it.

My OH gets SAPTO and he definitely doesn't get any sort of government benefit whatsoever.

And all income is counted - regardless if it is earned in a job or from investments.
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Old May 20th 2018, 12:20 am
  #49  
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Default Re: Australian Pension

Originally Posted by Kiwipaul
Yes I agree about income because if you earn over $50,119 (for a single person) SAPTO cuts out, but I cannot find anything about having to be in receipt of a gov benefit.
Also it's not clear to me whether this income has to be earned in a job or does investment income count as well. It is designed to encourage people to stay in work beyond retirement age.
In fact SAPTO and LITO (low income tax offset) increases the income before tax has to be paid to $32,279.
.


There has to be a "Sweet spot" where one earns income or receives interest v the Pension income starting to cut to the point of being detrimental to earning more.

BTW Paul, are you aiming to work beyond Pension age? I'm considering it. My wife is in a situation where although she is only 2.5 years younger than me, she reaches pension age 4 years after me, because of the sliding pension age, which for her will be 67. I'm working out what we are going to do during that 4 years..... Whether I carry on working, whether we go overseas and live of off our super, whether we rent our place out and grey nomad, or whether we just stay put, take holidays and carry on working.... It's actually an exciting time.
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Old May 20th 2018, 12:21 am
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Default Re: Australian Pension

Originally Posted by Kiwipaul
Yes I agree about income because if you earn over $50,119 (for a single person) SAPTO cuts out, but I cannot find anything about having to be in receipt of a gov benefit.
Also it's not clear to me whether this income has to be earned in a job or does investment income count as well. It is designed to encourage people to stay in work beyond retirement age.
In fact SAPTO and LITO (low income tax offset) increases the income before tax has to be paid to $32,279.
.


There has to be a "Sweet spot" where one earns income or receives interest v the Pension income starting to cut to the point of being very detrimental to earning more.

BTW Paul, are you aiming to work beyond Pension age? I'm considering it. My wife is in a situation where although she is only 2.5 years younger than me, she reaches pension age 4 years after me, because of the sliding pension age, which for her will be 67. I'm working out what we are going to do during that 4 years..... Whether I carry on working, whether we go overseas and live of off our super, whether we rent our place out and grey nomad, or whether we just stay put take holidays and carry on working.... It's actually an exciting time.
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Old May 20th 2018, 9:41 am
  #51  
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Default Re: Australian Pension

Originally Posted by ozzieeagle
.
BTW Paul, are you aiming to work beyond Pension age? I'm considering it.
I'm already retired and have been for the last 5 years but I hit the pension age this month and so my tax free income will jump from $18,000 to $32,000 for this tax year if I understand the laws correctly.
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Old May 20th 2018, 11:30 am
  #52  
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Default Re: Australian Pension

Originally Posted by Kiwipaul
I'm already retired and have been for the last 5 years but I hit the pension age this month and so my tax free income will jump from $18,000 to $32,000 for this tax year if I understand the laws correctly.

I think thats about right, however at least 50pct of that figure will come out of any government pension you may be eligible for, because of the income rules against government pensions..... So it's a case of peter robbing paul. Unless you dont have to worry about the Government Pension then your fine.
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Old May 20th 2018, 12:48 pm
  #53  
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Default Re: Australian Pension

Originally Posted by ozzieeagle
There are some really technical and little-known tax savings when one actually reaches the full retirement age of 66/67 here in Victoria and probably mirrored around the country.

Things like no Stamp Duty on downsizing houses etc. There are a couple of others like that.

One thing I don't get is annuities v draw down on Super. How is an Annuity better than drawing down when needed. If one has an annuity the government automatically deducts 50pct of whatever they receive above 18K from their pension. Whereas with a draw down you only lose that 50pct (above 18K) of pension on what you draw down....which is bound to be less I would have thought than an annuity amount.

I'll be asking my Tax Accountant, who is very good at the government rules, about these little anomalies and reporting back.
My opinion:
I'd go for the draw down over the annuity. With the latter, there's another financial company involved - aka fees. The ideal situation is to not have to draw down and live off the interest. With $1m (entirely feasible for a couple who have worked all their lives and earned decent salaries) in blue-chip shares paying good dividends, definitely possible
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Old Aug 28th 2018, 7:54 am
  #54  
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Default Re: Australian Pension

I think I've just worked out that after all, I don't qualify for a UK pension at all. Having not been in the workforce for a full 10 years there. First of all, I'm not sure whether the clock starts at age 16 which is when I first joined the fulltime workforce. Plus I left the UK with 7 years worth of contributions if they get counted from age 18? So do they count from age 16 or 18? I think my life would be a lot easier if indeed I don't qualify for the UK pension, as it saves a lot of mucking around with the Australian System and the debit amount from the Aus system on account of having a UK pension.

So the question is if one isn't in the UK workforce for 10 years do I definitely not qualify for a UK pension. I think if they count me from when I first started work at age 16 I'm about 9 years and 6 months.

How do I find out the answer to this, or does anyone on here know?
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Old Aug 28th 2018, 10:38 am
  #55  
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Default Re: Australian Pension

Willis group Ipswich have only gone and lost my private pension....... I've made 3 phone calls thus far, gone round in bloody circles only to end up back at them. The original one to Willis Group, one to the Government Pension finding mob, one to the mob that the Government put me on to... Ascot Lloyd or something and they put me back to Willis. All fingers point to Willis having it, including their own annual statement which they dutifully send me twice a year to tell me how they are going.... and the silly buggers haven't got a clue. No account number, no communication about all the different companies involved and now no bloody record. Save for their bloody annual statement. I guess I'll have to wait to see what happens when It's time to pay it out, then I'll probably hear something.

hope those bloody 0800 numbers aint going to cost me, because I was on hold for bloody ages, with nothing to show for it. God ineptitude at it's saddest. Some miserable buggers over there as well.

Why the hell do they charge phone enquiries, whats that all about?



I'd larf if it wasn't my money involved.

Time to start emailing for some paper records me thinks.
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Old Aug 29th 2018, 12:23 am
  #56  
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Default Re: Australian Pension

Originally Posted by ozzieeagle
I think I've just worked out that after all, I don't qualify for a UK pension at all. Having not been in the workforce for a full 10 years there. First of all, I'm not sure whether the clock starts at age 16 which is when I first joined the fulltime workforce. Plus I left the UK with 7 years worth of contributions if they get counted from age 18? So do they count from age 16 or 18? I think my life would be a lot easier if indeed I don't qualify for the UK pension, as it saves a lot of mucking around with the Australian System and the debit amount from the Aus system on account of having a UK pension.

So the question is if one isn't in the UK workforce for 10 years do I definitely not qualify for a UK pension. I think if they count me from when I first started work at age 16 I'm about 9 years and 6 months.

How do I find out the answer to this, or does anyone on here know?
https://www.tax.service.gov.uk/check-your-state-pension
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Old Aug 29th 2018, 12:45 am
  #57  
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Default Re: Australian Pension

I gave that a brief look yesterday whilst making the phones calls for the private company pension.

I've just tried to join and failed at UK address. So I've got to phone them, at least I've got a direction to go in now.

Many thanks.
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Old Sep 1st 2018, 2:59 pm
  #58  
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Default Re: Australian Pension

Originally Posted by Amazulu
Bulk billing doctors are increasing everywhere - plenty around here and more opening. Medical schools turning out more graduates than required means that BB is the only way many of them can make a living
Indeed. That's even happening in the ACT. Just a year or two ago it was hard to find a bulk billing doctor without having to wait in a long queue to see one.
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Old Sep 1st 2018, 4:14 pm
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Default Re: Australian Pension

Originally Posted by ozzieeagle
I gave that a brief look yesterday whilst making the phones calls for the private company pension.

I've just tried to join and failed at UK address. So I've got to phone them, at least I've got a direction to go in now.

Many thanks.
When you get your pension statement you should be able to top up 5 or more years of missed contributions and to make voluntary contributions until you are 67. My sister received hers recently and I was surprised to see she has been given the option to top up 12 of her missing years.
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Old Sep 2nd 2018, 3:37 am
  #60  
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Default Re: Australian Pension

Willis found my private Pension, they are sending me details on how to cash it in before my retirement date. Seems like Emails are the way to go with this kind of thing. Especially as Vodafone were going to charge me for ringing a 0800 UK number which apparently was meant to be free. They re credited me after I complained about the supposed "Free" call though, which I figured should have been included in the 1200 Oseas minutes I have with them.

AFAIK Paulry If I do qualify for any UK pension it will be so low that it will actually be detrimental to me, inasmuch as I will have to fork out the transaction fees out of my own pocket. So I'm hoping to get zilch from the UK now. Besides cashing in my private pension.
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