Centrelink & Inheritance...anyone know how it works??

[briggsy's girl]

for ftb purposes, you need to check with your accountant on what portion (if any) is taxable. a lot of it will depend on what you're doing with the money - if you invest a large sum of money, it will earn interest, which is taxable, and will, in turn, impact your payments

[BeautifulMadness]

I know when my dad started taking momney out of his super...he gets a certian amount every may ( he started this in 2009) and he had to declare ( which is retarted)

[briggsy's girl]

why is it "retarded"?

your super is there to improve your quality of living in your later years so that you are not living JUST on the pension (cos it's sweet bugger all really) - it is deemed an income and should be declared. there is a certain amount you can "earn" before your pension is impacted, and then it impacts you, but no where near at a dollar for dollar rate.

not that it is in ANY way relevant to the OP's question though! totally not related

[Daffodil Mumma]

Thanks BG so far we are thinking about locking some in a trust for DS for he's like 21, paying off some debts and just leaving the rest in our regular savings account (so not a huge interest earning one)

[briggsy's girl]

Thanks BG so far we are thinking about locking some in a trust for DS for he's like 21, paying off some debts and just leaving the rest in our regular savings account (so not a huge interest earning one)

make sure you get financial advice about the best way to set up trust fund - from what i have gathered, if it isn't set up properly, and gains interest, it can be deemed that the interest is taxable for the people who set up the fund (or something like that - would hate for you to make the gesture and then get slogged tax on money you have no access too)

[Daffodil Mumma]

Oh wow yea good point.....I hadnt even thought of that!!! Just assumed if it was in DS name it would be fine!! Shall chat to the accountant for sure

[2girls]

Helen, usually if it's invested in a child's name it's fine, however you need to be careful how much the investment earns. Kids can't earn much before they start having to pay 46.5% tax (top marginal tax rate) - designed to stop people hiding money in their kids' names, but not much help when you're just trying to do the right thing! However, there are other options like investment bonds that will be tax free for all of you provided you don't access it for 10 years. The accountant should be able to help you with this.