* Maximum offset reduced by 12.5 cents for each $1 in excess of shaded-out threshold.
** A taxpayer's taxable income is taken to be half the couple's combined taxable income.
Senior Australians are not required to pay any income tax if their income is below $32 279 for singles (or $28 974 each for couples). But if senior Australians derive income from a share portfolio they are encouraged to lodge a tax return, as they will receive a nice refund from all of the excess franking credits attached to their dividends.
If you're single, you can earn up to $32 279 (and $28 974 each for couples) in non-super income without paying a cent of tax because of the application of SAPTO and LITO. Any additional superannuation benefit that you receive from a taxed source is tax-free.
Senior Australians who are over Age Pension age but still participate in the workforce can keep more of their pension when they have earnings from working via the Work Bonus incentive. The Work Bonus allows an eligible pensioner to earn an extra $300 per fortnight from employment before it affects their pension rate. Single pensioners can effectively earn $478 per fortnight (being $300 from Work Bonus and the $178 income test free threshold) and still receive the maximum rate of pension.
Any unused part of the $300 fortnightly Work Bonus exemption amount can be accrued in a Work Bonus income bank, up to a maximum of $7800. The income bank amount is not time limited; if unused, it can carry forward into future years (although note that the maximum amount that could be accumulated in the Work Bonus income bank prior to 1 July 2019 was $6500).
Senior Australians who are not eligible for a pension due to their income or assets, may still be eligible for a Commonwealth Seniors Health Card provided that they continue to reside in Australia and their adjusted taxable income is below:
$55 808 a year if you're single
$89 290 a year for couples
$111 616 a year for couples separated by illness, respite care or prison
9 OTHER GOVERNMENT BENEF ITS
There are so many different types of government benefits these days that it is no wonder some families are confused, and aren't claiming everything that they should be entitled to. Most entitlements are means tested, which means the benefits you receive are reduced as your income increases.
If you're in doubt when estimating your annual income, it is always better to overestimate. It can be difficult to repay a debt to Centrelink if you have already spent the cash!
Family Tax Benefit Part A
This benefit helps with the cost of raising dependent children and dependent full-time students under the age of 18. The amount of the benefit is determined by your family income as well as the number and age of your dependants. It will only be paid up to the end of the calendar year that your teenager is completing school.
Family Tax Benefit Part B
Restricted to families where the primary earner has an adjusted taxable income under $100 000, this benefit provides extra assistance to families with one main income. The lower-earning parent can earn up to $5767 per annum before the benefit reduces. The Family Tax Benefit Part B fades out when the secondary earner receives more than $28 671 income per annum.
Parenting payment
This payment provides financial help for people who are the primary carers of children. It is means tested on both your income and assets.
JobSeeker Payment
If you are unemployed, looking for work and aged between 22 and the Age Pension age (currently 66), or you are sick or injured and cannot perform your usual work then you may be eligible for the JobSeeker Payment from Services Australia. The maximum fortnightly payment varies depending on your family situation but ranges from $620.80 per fortnight for single jobseekers with no children to $850.20 per fortnight for single principal carers.
There will be a waiting period of between 1 to 13 weeks depending on how much you have in liquid assets and you will not be eligible for the JobSeeker Payment if your other income or assets are over certain amounts.
Income test
Individuals may be entitled to the full JobSeeker Payment if your other income is less than $150 a fortnight and your partner earns less than $1124 per fortnight. It phases out once you reach an income cut-off point (from $1217 if single with no children to $2321 if single and you are the principal carer of a dependent child with no mutual obligation requirements.
Assets test
Single homeowners must have assets other than their home worth less than $268 000, rising to $401 500 for a home-owning couple. These thresholds increase by $214 500 for non-homeowners ($482 500 for singles and $616 000 for couples).
Youth Allowance
The Youth Allowance is a government benefit paid to eligible students, apprentices or those looking for work aged 16 to 24. It is means tested based on both the young person's income and his or her parents' income. The allowance is assessable and must be included in your income tax return. Unfortunately, Youth Allowance recipients cannot claim a tax deduction for expenses incurred in relation to their studies.
National Disability Insurance Scheme
People with a permanent or significant intellectual, physical, sensory, cognitive and psychosocial disability and aged between 7 and 65 may be eligible to receive support via the National Disability Insurance Scheme (NDIS). If you have a child less than 7 years old who has a developmental delay or disability, the NDIS has partnered with early childhood partners across the nation to deliver the Early Childhood Early Intervention program to assist.
Transition to work
Transition to Work provides pre-employment help to eligible young job seekers who are aged between 15 and 24 years, and are not involved in study or work. Eligibility is only available if the young job seeker does not have a Year 12 (or equivalent) or Certificate III qualification.
Pension loans scheme
If you or your partner are of Age Pension age, you own real estate in Australia and you receive less than the maximum rate of the Age (or Disability Support or Widow B) Pension, then you can apply for a non-taxable loan if you need extra income or to help for a short time or an indefinite period. The loan is capped up to 1.5 times the maximum rate of pension,