I have been reviewing the Centrelink's determination of assessible income and have looked at the comments on this site in an attempt to simplify my (and others) understanding. Here is a description of inclusions for assessible income for the Income Test for various things such as FTB, baby bonus etc:
Examples of assessable income include:
deemed income from financial investments
gross income from earnings, including fringe benefits
employment income salary sacrificed into superannuation
net income from businesses, including farms
family trust distributions or dividends from private company shares
net income from rental property
total net losses from rental property
income from boarders and lodgers
deemed income on money in superannuation funds if you have reached age pension age
reportable superannuation contributions (salary sacrificed contributions)
non-Australian pensions and income
any income from sources outside Australia
income from income stream products, such as annuities, allocated products and superannuation pensions.
Therefore, I will use my example with particular reference to the following factors to see if I correctly understand - I have rang Centrelink and reviewed the website but it is still not clear and confusing that rental losses are ADDED to income??!?!?
For example, if I had PAYG income of $100k and my partner had $25k and I had the following investment proerty losses:
Income 50k
Expenses 100k
Net Income/loss ($50k) LOSS
Would this therefore mean per the Centrelinks calculations that we (family) have assessible income of $175k ($100 + 25 + 50k) and therefore ineligible for the baby bonus?
The Centrelink site details the following inclusions for Assessible Income and I have included in brackets the totals from above for illustrative purposes):
Earnings (100k + 25k)
net income from rental property (do we also include rent here or is this doubling uo?)
total net losses from rental property (50k)
This ruling seems very confusing and whilst I do have a business/finance background and do understand these terms would appreciate feedback from others with experience or knowledge in this area to give us their take on above and whether families in that position are eligible for baby bonus and correct amounts to record?
Thanks
Ritch
Examples of assessable income include:
deemed income from financial investments
gross income from earnings, including fringe benefits
employment income salary sacrificed into superannuation
net income from businesses, including farms
family trust distributions or dividends from private company shares
net income from rental property
total net losses from rental property
income from boarders and lodgers
deemed income on money in superannuation funds if you have reached age pension age
reportable superannuation contributions (salary sacrificed contributions)
non-Australian pensions and income
any income from sources outside Australia
income from income stream products, such as annuities, allocated products and superannuation pensions.
Therefore, I will use my example with particular reference to the following factors to see if I correctly understand - I have rang Centrelink and reviewed the website but it is still not clear and confusing that rental losses are ADDED to income??!?!?
For example, if I had PAYG income of $100k and my partner had $25k and I had the following investment proerty losses:
Income 50k
Expenses 100k
Net Income/loss ($50k) LOSS
Would this therefore mean per the Centrelinks calculations that we (family) have assessible income of $175k ($100 + 25 + 50k) and therefore ineligible for the baby bonus?
The Centrelink site details the following inclusions for Assessible Income and I have included in brackets the totals from above for illustrative purposes):
Earnings (100k + 25k)
net income from rental property (do we also include rent here or is this doubling uo?)
total net losses from rental property (50k)
This ruling seems very confusing and whilst I do have a business/finance background and do understand these terms would appreciate feedback from others with experience or knowledge in this area to give us their take on above and whether families in that position are eligible for baby bonus and correct amounts to record?
Thanks
Ritch