Capital Gains and family tax benefit.

[rugrat]

Hello,
Just wondering if anyone is able to answer my question. If my DH and I sell our PPOR and make roughly 60k in capital gains; Does the ATO consider that to be 'income' for the purposes of figuring out Family Tax Benefit?

 

[Terry_w]

Hello,
Just wondering if anyone is able to answer my question. If my DH and I sell our PPOR and make roughly 60k in capital gains; Does the ATO consider that to be 'income' for the purposes of figuring out Family Tax Benefit?

FTB is administered by Centrelink and they look at the adjusted family income which is different to the taxable income:
http://www.centrelink.gov.au/internet/internet.nsf/payments/ftb_a_iat.htm

This would be taxable income with some add backs such as losses on investment properties. Having a CG would increase your taxable income.

 

[wylie]

Hello,
Just wondering if anyone is able to answer my question. If my DH and I sell our PPOR and make roughly 60k in capital gains; Does the ATO consider that to be 'income' for the purposes of figuring out Family Tax Benefit?

Like Terry said, it does come into play. For the first time last financial year I got a big fat "nothing" in any benefit. I generally get a very small amount, but due to a sale and capital gain, for that year I missed out altogether.

 

[Ed Barton]

i think you are both missing that the OP's CG is on their PPOR. I see nothing on the centrelink site about adjusted income that would suggest it includes gains on a PPOR. the centrelink site is worse than the ATO's, so i could be wrong.

http://www.centrelink.gov.au/internet/internet.nsf/factors/income_taxable.htm

 

[Terry_w]

Oh, yes. I thought DH was some form of investment property!

Generally capital gains on main residences are exempt from tax.

 

[wylie]

OOPS! Sorry. We sold an IP. Must be having a "senior" moment . Obviously cannot read that well either .

 

[rugrat]

Cheers. We are just weighing up the pros and cons of selling vs turning into an IP and want to make sure we have all the info correct.

 

[Ed Barton]

Oh, yes. I thought DH was some form of investment property!

Generally capital gains on main residences are exempt from tax.

defence housing? when i see DH, i firstly read - Richard head.

 

[Terry_w]

defence housing? when i see DH, i firstly read - Richard head.

Yeah, that is what I assumed at quick glance. DH probably means 'darling husband'?

 

[rugrat]

Yeah, that is what I assumed at quick glance. DH probably means 'darling husband'?

DH = Darling Husband.
Sorry, i forget that different abreviations mean different things in different forums.