I would like to receive the aged pension in the future, so I need to transfer property assets to a trust (need to set up a trust). A tax lawyer told me that there is no CGT as there are no proceeds taking place as it is gifting. Is this correct? If this is not correct and there would be CGT then can that gain be rolled over to a superfund?
Do the properties not give you more than the aged pension would? Is that not the point of investing, to not need the pension?
Not much of a tax lawyer. Not true Also look at the source test for social security act, about section 1227 from memory. Trust assets will be counted as your own
The properties cost a lot to hold and there is not enough left for me to live off. They also need a lot or maintenance and that is expensive. I paid taxes all my life so I do believe that I deserve the pension. When you look to any developed country in the world, once people get to retirement age; they get the aged pension regardless of what they own and regardless of whether they still work or not - the pension does not get cut nor shortened. We are so isolated and have no neighbours so nobody sees what is happening elsewhere. We have the worst age pension regimen out of all so called "developed" countries.
It's a safety net. If you have assets, there's the option to sell them and live off the proceeds. Your assets are there to make your life easier, cash them in, put the cash under your mattress.
I did not ask u for your opinion nor ur judgement; I asked whether there is cgt on gifting property to trust and if there is cgt can the gain be rolled into superfund Do u have answer to my questions? If not that is ok just stay silent Thank u
Or my spell checker. If you are 'gifting', then this may be seen as disposal which may delay access to any pension which is not a tax issue.
What a idiot. Sure they are a lawyer ? They know nothing about tax. Doing this is a sure way to have Centrelink send you a phone book and then cancel pensions. If you gift to a trust the gifting rules catch it. If you are a potential beneficiary, a trustee OR a appointor its all caught. The gifting rule is by far the easiest catch all. Why would a lawyer provide you with unlicensed financial advice? A pension is a financial product - even a Centrelink pension.
Its a public forum Maruska. I would probably limit your tone to a member with 13,000+ posts since they are posting on a public forum as you did. Sometimes people post things which on reading of threads seem like they didnt read and search a answer. Especially when they have made 4-5 posts since joining. Sometimes their replies can be blunt as a consequence. You are asking for free advice from anon persons. How do you know if what they say is even accurate ?? To answer your question truly requires financial advice and tax advice. I can answer your question but you wont likely appreciate it either............ You can rollover money or contribute money to super. Depending on many factors including your age and other issues. Caps may be affected. There is a small business CGT cap available for some small business CGT concessions which is a complex area of tax law BUT very lucrative if you can access it. However you cannot "rollover a capital gain" as such. Thats like saying can I deposit a tax deduction into a ATM ? No. You can only deposit money. And there are strict limits on the assets some types of super fund can acquire from members...like property !! The question actually makes no sense. It indicates you have no idea what you are actually asking about. Have you considered the downsizer contribution rule ? Or non-concessional caps if you sell the property ? And consider planning how to access a pension under assets and income rules ?
I'm only stating the obvious, like yourself Paul. Yes, the forums have covered the topic several times over but as you said, without full disclosure black might be fine but so could red until the ATO come after you.
