FBT ( Family Tax Benefit)

I'm playing around with centrelinks FTB calculator and am now totally confused with their rules, looking at the tax report from the PIA software what tax figures should I be entering? New taxable income? and then from the summary, after tax cash flow, for the loss?
 
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I'm playing around with centrelinks FTB calculator and am now totally confused with their rules, looking at the tax report from the PIA software what tax figures should I be entering? New taxable income? and then from the summary, after tax cash flow, for the loss?

This is how I understand it if you are working out FTBa and the kindy benifits

INCOME FROM JOB $20,000
INCOME FROM RENT $20,000

TOTAL INCOME $40,000

DEDUCTIONS WORK RELATED $1,000
RENTAL DEDUCTIONS $50,000

TOTAL RENTAL LOSS $30,000 (INCOME - RENTAL DEDUCTIONS)

Centrelink see your taxable income as $49,000 ( as rental losses are added back on for FTB purposes ) all other deductions non rental related centrelink accepts , I found with my own sitiuation I was better off not clamiming all my rental deductions making my rent and rent deductions equal to gain full Benifits.

I have yet to discover wether this works out better or not but I did not want to give back a huge lump sum

Martin
 
INCOME FROM JOB $20,000
INCOME FROM RENT $20,000

TOTAL INCOME $40,000 Correct

DEDUCTIONS WORK RELATED $1,000 minus from income
RENTAL DEDUCTIONS $50,000

TOTAL RENTAL LOSS $30,000 (INCOME - RENTAL DEDUCTIONS) add to income

Wouldn't this make a total income of $69000?
 
INCOME FROM JOB $20,000
INCOME FROM RENT $20,000

TOTAL INCOME $40,000 Correct

DEDUCTIONS WORK RELATED $1,000 minus from income
RENTAL DEDUCTIONS $50,000

TOTAL RENTAL LOSS $30,000 (INCOME - RENTAL DEDUCTIONS) add to income

Wouldn't this make a total income of $69000?

As I see it, originally income from job = $20k. Tax returns claimed negative gearing loss of -$30k. The tax return would show a net loss of $20k - $30k = -$10k.

Centrelink has your tax returns but needs to reconstruct your income without the negative gearing effect. So, the negative gearing loss is added back to the taxable income, ie -$10k + $30k = $20k. Now, Centrelink will determine your Family Tax Benefits based on $20k - $1k of work deductions = $19k. :)
 
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So in effect the rental income doesn't get added in to start with, as essentially its included with the loss.

So lookin at the tax benefits report from the PIA software, it would be my new taxable income + after tax cash flow, correct?
 
So in effect the rental income doesn't get added in to start with, as essentially its included with the loss.

So lookin at the tax benefits report from the PIA software, it would be my new taxable income + after tax cash flow, correct?

That's correct, it's NET rental loss, so if you're positive geared the positive income gets added to your income, if you're negative, the net loss doesn't get deducted, but your rental income doesn't get added either in that case.

eg.to use a more realistic example than the one given, one that doesn't result in negative income.

Income $60,000
Rent $15,000
Property related deductions $20,000

Taxable income: $55,000 ($5,000 negative gearing)
Income for FTB purposes: $60,000

Until this year it was discriminatory in that it only applied to rental property deductions - you could negatively gear shares and still claim the difference, but they've fixed that now.

What I've never been able to work out is what thresholds they use if you have a new child during the year.
 
Yes Sharob. That is my dilemma too. Because have claimed CCB for childcare and OHSC not realising how much it will affect my income with net rental losses added as income??
 
FWIW, the first year we claimed FTB fortnightly - all OK. The next year, we get overpaid and slugged with a bill!!

So since then we've always gone lump sum - we're fortunate we don't NEED the FTB during the year, and the lump sum is nice, even though we've effectively given the govt an interest free loan.
 
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