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Deeming of Income

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Views 295

Replies 1

I want to transfer my super from a self managed super fund to QSuper, where I already have an accumulation account .  My question is regarding Commonwealth Seniors Health Card.  My current super pension account was opened before 2011 and therefore income is not counted for eligibility for the above card.  If I now open a new pension account, will the income from that be deemed or will the total amount of pension be included.  That would mean I might lose my Health Care Card.  I am not eligible for any old aged pension. 

Would you please help me, as losing my Health Care Card would disadvantage me considerably.

Thank you in advance

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Devotee

Replies 0

Hi leonemcn

 

This is a question for Services Australia rather than for the ATO, given that it's how Service Australia's rules work in relation to deemed earnings on financial assets.

 

However, I googled. It seems there was a change in 2015, and super pension accounts started after then would be included in the deemed earnings calculation.

 

I strongly suspect that if you transfer your money over to QSuper that a deemed earnings amount would then be calculated on your total QSuper balance. Deeming rate on financial assets you hold above $53,000 is currently 2.25%. So for every $100,000 you transfer, $2,250 will be the deemed income amount on it.

 

I suggest contacting Services Australia and confirming that that's the case.

 

I'm an ATO employee voluntarily providing my time here

1 REPLY 1

Most helpful response

Devotee

Replies 0

Hi leonemcn

 

This is a question for Services Australia rather than for the ATO, given that it's how Service Australia's rules work in relation to deemed earnings on financial assets.

 

However, I googled. It seems there was a change in 2015, and super pension accounts started after then would be included in the deemed earnings calculation.

 

I strongly suspect that if you transfer your money over to QSuper that a deemed earnings amount would then be calculated on your total QSuper balance. Deeming rate on financial assets you hold above $53,000 is currently 2.25%. So for every $100,000 you transfer, $2,250 will be the deemed income amount on it.

 

I suggest contacting Services Australia and confirming that that's the case.

 

I'm an ATO employee voluntarily providing my time here