Family tax benefit rules are up the creek
- Thread starter Ausprop
- Start date
Well it looks like they are making a start and cracking down on it a bit this year with a change to the definition of income:
http://www.familyassist.gov.au/New/2009/Pages/Changestothedefinitionofincome.aspx
Total Net Investment Loss
The Family Assistance Office already includes net losses from rental properties as income. It also includes net losses from financial investments. Together, net losses from rental properties and net losses from investments are known as total net investment losses.
If you expect to make a loss from rental property income, investment income or both, you need to give the Family Assistance Office details of the total amount of losses for financial investments. It is important you only record losses from investment earnings, not capital losses.
If you have net investment losses, you must declare this income to the Family Assistance Office as part of your income estimate.
So net investment losses, such as the deduction of loan interest for the purchase of Special Income Units in a HDT, are now added back whereas they never were in previous years.
That is what we had done, added it back on the application. Then they deducted it back off again.
Regrow
It only comes into effect for the 2009-2010 financial year.That is what we had done, added it back on the application. Then they deducted it back off again.
Regrow
That is why negative gearing should be bolished.
There is also a double counting - capital work deduction - calculated twice when you do the cgt. I had a discussion with ATO and they acknowledged that.
ATO are anti-investing and pro-rich people.
I reckon Australian tax system is a shame and so complicated. NG and CGT should be reformed. CGT should be should be treated a business tax and NG should be dumped.
There is also a double counting - capital work deduction - calculated twice when you do the cgt. I had a discussion with ATO and they acknowledged that.
ATO are anti-investing and pro-rich people.
I reckon Australian tax system is a shame and so complicated. NG and CGT should be reformed. CGT should be should be treated a business tax and NG should be dumped.
you also need to apply in person at centrelink, or online. gone are the days when your tax return prompted the family benefit payment. imagine how much that will save because of people who can be bothered putting in the return manually.
also imagine how much $$ the government could save if they scrapped family benefit for everyone except those living within 10% of the poverty line ... and simplified the tax system. a fortune in civil servant wages alone.
also imagine how much $$ the government could save if they scrapped family benefit for everyone except those living within 10% of the poverty line ... and simplified the tax system. a fortune in civil servant wages alone.
it's more than just FTB tho. look at all those $1000 cheques, $900 cheques, the GST exemption on food and residential housing, rules for deducting legal fees and software, various caps on super... could go on all day. this country thrives on admin, tall poppy cutting and giving the under dog a free leg up despite the cost
Lizzie, last year after hubbie's tax was done, we got a centrelink payment for the shortfall each fortnight.
Has this changed just this financial year? I get a small payment as I don't want to owe them any money like happened once before when they paid me too much per fortnight.
I give them an income overestimation (usually about 2-3k over) each year and get paid fortnightly. I get less than $300 a fortnight and always get puzzled when people who earn more than me get heaps more, but I guess that's the system. I got so much more than that back when I was a single parent earning $35k with only one kid .... *sigh*
I get to deal with the centerlink fun of declaring an investment property next week (assuming these prospective tenants don't stand me up tomorrow) so that's going to be fun. They've grilled me enough times on my empty property that doesn't earn anything, this'll be the first time it actually returns $$. Centerlink must hate me - their forms are all set out for people earning a wage or share income, and I've got a website earning in $US and now rent as well ... confuses the pants off em
I get to deal with the centerlink fun of declaring an investment property next week (assuming these prospective tenants don't stand me up tomorrow) so that's going to be fun. They've grilled me enough times on my empty property that doesn't earn anything, this'll be the first time it actually returns $$. Centerlink must hate me - their forms are all set out for people earning a wage or share income, and I've got a website earning in $US and now rent as well ... confuses the pants off em
yes - it changed just this financial year just gone. i was advised by my accountant and when to centrelink to put in the paperwork only to have it confirm.
apparently the admin was costing the ato much administer.
What do you class as low income?? We have nearly paid off our home and are trying to decide whether to put our extra money into super or an IP. We currently get FTB A and B, so how do I work out net losses for an IP, as this I am discovering will impact any centrelink payments, which could also impact whether we get any childcare benefit too....So much to consider!!!
I consider low income to be < 20k (ie, a couple on a pension) but centerlink pays single parent benefits and perks up to about $40k so low income for a single is well over twice that for a couple. If you are on parenting payment partnered you lose FTA/FTB once your partner earns more than $4k so for that payment, low income is < $4k. On the dole and most other payments, it starts cutting back once you earn more than $60pw, so $3k PA. For those who aren't on welfare, all the government perks cut out at a combined income of $150k, which is the highest definition of low income I've ever seen. I wish the government would raise some of those really low single digit 'low income' thresholds that haven't changed for decades. Like, make them match the tax-free threshold. Isn't that also $20k nowadays? It might make it actually worthwhile working on the dole/pensions if you don't lose 70c in the dollar after clawbacks and tax for a minimum wage job.
/rant
/rant
Absolutely; I think that's absolutely ridiculous. I don't know what the exact figure should be, but the idea that a family with a combined income of 2.5 times the average wage only *just* fails to qualify for welfare is silly! It should only be available to families with a combined income well below the average wage of $60K.
I acknowledge that families with incomes around $70K could still be finding it quite difficult, but that should be addressed via the tax brackets - and through allowing income splitting - than through welfare. It's inequitable that a family with one person earning $70K pays more tax than a couple where each person earns $35K.
And the definition of "income" should be the same for all purposes relating to dealings with Government.
Couldn't agree more with income splitting!
If we could income split I would be so happy! It might help to make all those weird shifts my husband does and extra study/stress etc etc worth it all.
If we could income split I would be so happy! It might help to make all those weird shifts my husband does and extra study/stress etc etc worth it all.
Oh, wouldn't that be nice. And the same thresholds for everything too, none of this $40k if you're on one pension, $20k for the ATO, $4k for another pension etc. Then there's asset limits ... they need to overhaul everything.
http://www.centrelink.gov.au/internet/internet.nsf/payments/rent_rates.htm
And while we're at it, the limits for rent assistance are REALLY SMALL ... they seem to be the same as back when rents barely got higher than $150 a week. Read those charts carefully - they are all FORTNIGHTLY. My brain mentally read them as weekly because the numbers are so small.
hey
im receiving part carer payment for my child, yes it cost a fortune for medical treatment but i would love to use my equity (about $200000) to buy small rental property, I have no superannuation, i don't want to receive centrelink payment forever but im not sure if any way to do this without loosing the pension card. I only receive small part of carer payment as my husband income is under cut off... i agree centrelink is very confusing........ i hope you have so input on this ...diesel.
im receiving part carer payment for my child, yes it cost a fortune for medical treatment but i would love to use my equity (about $200000) to buy small rental property, I have no superannuation, i don't want to receive centrelink payment forever but im not sure if any way to do this without loosing the pension card. I only receive small part of carer payment as my husband income is under cut off... i agree centrelink is very confusing........ i hope you have so input on this ...diesel.
