Australian Aged Pension

[Nemises]

The following letter to the editor of a leading AU newspaper today, seems to have some relevance to this thread i.e. 1/ the reasons some of us may have left AU and moved to Thailand... 2/the hard yakka some of us are doing to get the OAP:

—————-

IT’S A NEW AUSTRALIA, MATE

We are no longer a country defined by cricket, meat pies and Holdens. Now it’s AFL, sushi and Volvos.

It’s no longer bonza, cobber, crikey sport or sheila. More likely f... this and f... that, bro, hoe and whassup?

A coldie in a can is now a craft beer from Silo 4. So many sooks and crooks with tatts and brats.

Anything old is replaced, including respect. Loyalty now means a punch hole in your coffee card. Protecting someone’s back means putting sunscreen on ya girlie’s bod.

Hard yakka means trying hard to maximise your welfare handout.

But it’s still the land of milk and honey, or is it the land of rights and money?

As the song says “we are young and free” .

God bless Australia — land of the free (everything).

———————-

[maccastime]

Just to add to this topic. I was living in Thailand for 6 years returned to Sydney in 2016 at age 65,applied for aged pension waited 4 months as they asked so many questions and filed much paperwork. Finally they agreed to pay me, also back money for 4 months. But asked was I intending an o/seas holiday in the future, I said how long is a piece of string. They advised I could not exit any immigration point for two years if I did pension would cease and would have to apply again, I said can I not go for a few weeks with a return ticket... nope, just recently my thai lady was very ill I phoned and asked could I travel.. no. Sadly she passed away 3 days later. I asked could I attend her funeral... no. Roll on October 2018 I will be able to have wheels up.so I guess will I have to advise centrelink every time I go overseas?

[Lizard2010]

34 minutes ago, maccastime said:

Just to add to this topic. I was living in Thailand for 6 years returned to Sydney in 2016 at age 65,applied for aged pension waited 4 months as they asked so many questions and filed much paperwork. Finally they agreed to pay me, also back money for 4 months. But asked was I intending an o/seas holiday in the future, I said how long is a piece of string. They advised I could not exit any immigration point for two years if I did pension would cease and would have to apply again, I said can I not go for a few weeks with a return ticket... nope, just recently my thai lady was very ill I phoned and asked could I travel.. no. Sadly she passed away 3 days later. I asked could I attend her funeral... no. Roll on October 2018 I will be able to have wheels up.so I guess will I have to advise centrelink every time I go overseas?

Sorry for your loss

Plus not being able to attend the funeral, was terrible of centrelink

But unfortunately these are the rules we all have to put up with

If the Government used there brains they would realaise how much we save them by living overseas in particular Medicare

October will come soon mate

 

[halloween]

20 hours ago, maccastime said:

Just to add to this topic. I was living in Thailand for 6 years returned to Sydney in 2016 at age 65,applied for aged pension waited 4 months as they asked so many questions and filed much paperwork. Finally they agreed to pay me, also back money for 4 months. But asked was I intending an o/seas holiday in the future, I said how long is a piece of string. They advised I could not exit any immigration point for two years if I did pension would cease and would have to apply again, I said can I not go for a few weeks with a return ticket... nope, just recently my thai lady was very ill I phoned and asked could I travel.. no. Sadly she passed away 3 days later. I asked could I attend her funeral... no. Roll on October 2018 I will be able to have wheels up.so I guess will I have to advise centrelink every time I go overseas?

I think you were badly misinformed by CL. The tribunal ruling that the 2 years did not have to be continuous, holidays taken but not counted as part of the 2 years, came into effect well before that.

[Freed1948]

^ True: You can go OS but your Pension stops until you return to OZ.

[sceadugenga]

That's my information as well.

[maccastime]

On 03/02/2018 at 8:10 AM, halloween said:

I think you were badly misinformed by CL. The tribunal ruling that the 2 years did not have to be continuous, holidays taken but not counted as part of the 2 years, came into effect well before that.

Thanks for the info but that is what I was told. So dam annoyed that I couldn’t get to see my sick lady or a few days later not allowed to attend her funeral

[keithpa]

40 minutes ago, maccastime said:

Thanks for the info but that is what I was told. So dam annoyed that I couldn’t get to see my sick lady or a few days later not allowed to attend her funeral

You chose what was most important  to you. Dont worry about it.

[Bikeman93]

On top of that they are now removing the tax free threshold ($18,200) and raising the tax rate (32 cents in the dollar) if you spend more than 6 months outside of the country (non resident). Meaning if you do get a pension you may lose 1/3 in tax.

[halloween]

6 minutes ago, Bikeman93 said:

On top of that they are now removing the tax free threshold ($18,200) and raising the tax rate (32 cents in the dollar) if you spend more than 6 months outside of the country (non resident). Meaning if you do get a pension you may lose 1/3 in tax.

1/ the OAP is not considered taxable income

2/ if you are in Oz less than 183 days per financial year, you MAY be a non-resident for tax purposes. This is far from new, and there are other ways to maintain tax residence.

[Bikeman93]

11 minutes ago, halloween said:

1/ the OAP is not considered taxable income

2/ if you are in Oz less than 183 days per financial year, you MAY be a non-resident for tax purposes. This is far from new, and there are other ways to maintain tax residence.

So if you are outside the country for more than 183 days you may be a non resident for tax purposes.

 

Read the bit "Foreign resident tax rates 2016–17"

 

https://www.ato.gov.au/Rates/Individual-income-tax-rates/?page=1#Foreign_residents

 

The OAP is not generally considered taxable income unless it passes the tax free threshold through additional income or lowering the tax free threshold itself.

 

Edited February 5, 2018 by Bikeman93
Addition

[halloween]

2 minutes ago, Bikeman93 said:

So if you are outside the country for more than 183 days you may be a non resident for tax purposes.

 

Read the bit "Foreign resident tax rates 2016–17"

 

https://www.ato.gov.au/Rates/Individual-income-tax-rates/?page=1#Foreign_residents

Before 2/ there was 1/. Which part of it don't you understand?

 

BTW next financial year I will be outside Oz for 11 months, returning to earn ~$4000. Because I will meet other criteria, I expect to pay zero tax on those earnings.

[Bikeman93]

https://www.ato.gov.au/Calculators-and-tools/Host/?anchor=DORSLA&anchor=DORSLA/questions#DORSLA/questions

[halloween]

3 hours ago, Bikeman93 said:

So if you are outside the country for more than 183 days you may be a non resident for tax purposes.

 

Read the bit "Foreign resident tax rates 2016–17"

 

https://www.ato.gov.au/Rates/Individual-income-tax-rates/?page=1#Foreign_residents

 

The OAP is not generally considered taxable income unless it passes the tax free threshold through additional income or lowering the tax free threshold itself.

 

Are you aware that the full OAP is ~$22,000, and the threshold is $18,000? Do you think pensioners get a tax bill of $800 (19c +MCL times $4000)?

The OAP is not taxed. And as a Oz citizen, tax resident previous year travelling abroad while maintaining a residence in Oz, I can still claim to be a tax resident even after 11 months absence.

[simple1]

On 02/02/2018 at 10:51 AM, maccastime said:

Just to add to this topic. I was living in Thailand for 6 years returned to Sydney in 2016 at age 65,applied for aged pension waited 4 months as they asked so many questions and filed much paperwork. Finally they agreed to pay me, also back money for 4 months. But asked was I intending an o/seas holiday in the future, I said how long is a piece of string. They advised I could not exit any immigration point for two years if I did pension would cease and would have to apply again, I said can I not go for a few weeks with a return ticket... nope, just recently my thai lady was very ill I phoned and asked could I travel.. no. Sadly she passed away 3 days later. I asked could I attend her funeral... no. Roll on October 2018 I will be able to have wheels up.so I guess will I have to advise centrelink every time I go overseas?

I assume you were talking with your local Centrelink office; you were grossly misinformed. I twice travelled overseas during the two year wait for portability, both times for three weeks and received full Age Pension payments. The moment you depart Australia, Immi immediately and automatically notifies Centrelink.

 

https://www.humanservices.gov.au/individuals/enablers/age-pension-if-you-travel-outside-australia

 

Please raise the matter with your local Senator so action can be taken in order others do not suffer the same misfortune.

 

For the meantime, if I were you, contact Centrelink International for guidance on 131 673.

Edited February 6, 2018 by simple1

[Bikeman93]

9 hours ago, halloween said:

Are you aware that the full OAP is ~$22,000, and the threshold is $18,000? Do you think pensioners get a tax bill of $800 (19c +MCL times $4000)?

The OAP is not taxed. And as a Oz citizen, tax resident previous year travelling abroad while maintaining a residence in Oz, I can still claim to be a tax resident even after 11 months absence.

What if you are a self-funded retiree or you have some income from interest etc?

 

[maccastime]

Sounds like I definitely have been given the wrong info.will call them and see where I stand. Or maybe better to pay them a visit. Thanks for the info

[keithpa]

2 hours ago, Bikeman93 said:

What if you are a self-funded retiree or you have some income from interest etc?

 

Read again. " The OAP is not taxed. And as a Oz citizen, tax resident previous year travelling abroad while maintaining a residence in Oz, I can still claim to be a tax resident even after 11 months absence. " Forget other income. You will just get a part OAP.

[Bikeman93]

Forget OAP, what about retirees with there own passive income streams who provide for their own retirement and who wish to live abroad?

[tryasimight]

12 hours ago, Bikeman93 said:

Forget OAP, what about retirees with there own passive income streams who provide for their own retirement and who wish to live abroad?

Go for it, nobody will stop you - just be aware of the tax implications and medicare constraints.

 

BTW the thread is about the oz OAP, not self funded retirees.

[Will27]

13 hours ago, Bikeman93 said:

Forget OAP, what about retirees with there own passive income streams who provide for their own retirement and who wish to live abroad?

Well, that's more an ATO issue than a Centrelink one I guess.

 

You can get some good info on here.

Even though the heading is about the OAP, people on here discuss Centrelink,

tax/residency and other issues as well.

[keithpa]

13 hours ago, Bikeman93 said:

Forget OAP, what about retirees with there own passive income streams who provide for their own retirement and who wish to live abroad?

You  can live anywhere you  want. If your not classed as an Australian resident  for tax purposed, you will be taxed at a much higher rate, if your income stream originates in Oz.

[Mitch82]

On 07/02/2018 at 12:55 PM, keithpa said:

You  can live anywhere you  want. If your not classed as an Australian resident  for tax purposed, you will be taxed at a much higher rate, if your income stream originates in Oz.

It depends what form of income is being sourced from Oz. Interest is a flat 10% withheld by the institution if you have advised them of your residency change. Fully franked dividends are the way to go as the tax has already been paid.

Edited February 18, 2018 by Mitch82
Grammar

[keithpa]

20 minutes ago, Mitch82 said:

It depends what form of income is being sourced from Oz. Interest is a flat 10% withheld by the institution if you have advised them of your residency change. Fully franked dividends are the way to go as the tax has already been paid.

Wouldn't know. I let a team of accountants sort out my millions of income.

[Will27]

28 minutes ago, Mitch82 said:

It depends what form of income is being sourced from Oz. Interest is a flat 10% withheld by the institution if you have advised them of your residency change. Fully franked dividends are the way to go as the tax has already been paid.

But you're not getting the tax free threshold of $18 200 as a non-resident.

[Mitch82]

2 minutes ago, Will27 said:

But you're not getting the tax free threshold of $18 200 as a non-resident.

Correct, but a 10% flat rate is not so bad for interest. It beats the 30% rate for unfranked dividends etc. A good accountant like Keith mentioned also helps if you can afford one. I cannot unfortunately with chump change I deal with...

[keithpa]

55 minutes ago, Mitch82 said:

Correct, but a 10% flat rate is not so bad for interest. It beats the 30% rate for unfranked dividends etc. A good accountant like Keith mentioned also helps if you can afford one. I cannot unfortunately with chump change I deal with...

A few ;million baht aint that much. 

[Old Croc]

On ‎2‎/‎7‎/‎2018 at 8:45 AM, tryasimight said:

BTW the thread is about the oz OAP, not self funded retirees.

This thread started in 2008 and, although called OAP, it has long become the discussion place for all types of pensions and tax matters for Australians.

There is much history in the many pages relating to Comsuper, Disability, Defense Forces pensions, etc., it is much more than just for OAP.

To separate it all now into different categories would be impossible. Better if the title was changed to reflect the content. 

[sceadugenga]

26 minutes ago, Old Croc said:

This thread started in 2008 and, although called OAP, it has long become the discussion place for all types of pensions and tax matters for Australians.

There is much history in the many pages relating to Comsuper, Disability, Defense Forces pensions, etc., it is much more than just for OAP.

To separate it all now into different categories would be impossible. Better if the title was changed to reflect the content. 

We'll allow this to continue as long as the discussion remains civil.

[4MyEgo]

On 25/01/2018 at 6:58 PM, Will27 said:

Yep, the ATO is the scarey one methinks.

 

Although, you'd be surprised how many people get stopped at the airport trying to go on

holiday who have a child support debt.

I once had child support put a stop on my tax return cheque of $4,000 with the ATO, unless I paid my outstanding child support, i.e. I had an agreement with the x that I would pay for the kids schools shoes on top of the child support for that month if she purchased her new sports shoes, bitch agreed and then went back on the agreement, was always going back on agreements, always like that, never spent any money on the kid for school uniforms from the child support payments, suffice to say I would have to buy them and claim back through "necessary items" which has since been abolished, and was a lot of work and stress for me, as they would decline it every time, but I would win on appeal, obviously too much work for the C...ts