My senior parents on a full pension have come into an inheritance. They own their home and they want to put $100k into a term deposit to earn interest. How much interest can be earned so they don’t have to do a tax return or pay tax?
They would have to pay tax unless at least one of them has income above $32,587 for the year. The current couples pension amount is around $19k each, meaning if their non-pension income is below around $13k each they would not have to pay tax.
Impossible to provide an answer without knowing what their rebate income is. Whether they need to lodge depends on their total rebate income. Try the "do I need to lodge a tax return?" tool. Will need to use 2024 year as 2025 not yet available. (also provides an explanation of what rebate income is)
https://www.ato.gov.au/single-page-applications/calculatorsandtools?anchor=DINTL#DINTL/questions
Rebate income maximum for pensioners is $28,974. (for 2023/2024). Above this a tax return is required.
They would have to pay tax unless at least one of them has income above $32,587 for the year. The current couples pension amount is around $19k each, meaning if their non-pension income is below around $13k each they would not have to pay tax.
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