Latest news with #HankJongen
Yahoo
15-05-2025
- Business
- Yahoo
Centrelink issues urgent Age Pension eligibility change warning: 'Double check'
Services Australia has warned Australians to "protect themselves" by not falling for misinformation they might see online. Scammers have been trying to con people into thinking there have been big changes to the Age Pension. However, the government body said the payment system hasn't been altered. Services Australia urged people to "double-check" everything they read to make sure its real. "There are no changes to eligibility for Age Pension, and no changes to document verification for pensioners," it said. ATO issues superannuation warning for retirees over June 1 rule 'change' Retirement warning as controversial $3 million superannuation tax change looms: 'Be proactive' Commonwealth Bank customer rages over threat to cut access to his money: 'Seven day deadline' Scammers might use websites that look eerily similar to Services Australia or Centrelink, however, checking the URL can usually separate the real from the fake. "If a website URL doesn't end in . then it isn't an official government website," it said. "We'll always let you know when there are changes to any of our payments or services." Services Australia general manager Hank Jongen told Yahoo Finance these websites are designed to suck people in with flashy headlines. 'Their main purpose is likely gaining advertising revenue through website traffic, rather than phishing for personal information,' he said. Services Australia has noticed an uptick in the number of these scam sites claiming there are changes to things like eligibility or verification processes, as well as new bonuses, cash relief, or "one-off" payments. They will use words like "cost of living" and target those with a Concession Card or those on the Age Pension, Carer Payment or Carer Allowance. They're designed to lure in people who might be in desperate need of a lift in their payments, with big promises of up to $4,100 being offered. However, these payments don't exist. "They might also threaten you with penalties if you don't meet the new requirements," Services Australia warned. "They'll tell you they'll cancel your payments or that you'll get a fine or debt. This isn't true." It added that if you're ever unsure about information you see online, you can search the Services Australia website for any updates. You can also call Services Australia or message the body on social media. The Australian Taxation Office (ATO) issued a similar warning this week after noticing scammers trying to trick people into thinking there have been changes to superannuation. Several online articles have claimed super preservation and withdrawal rules are changing on June 1. But, again, this is fake news. "The maximum preservation age (the age when you can access your superannuation savings on retirement) is 60 for anyone born from 1 July 1964,' ATO deputy commissioner for superannuation Emma Rosenzweig said. 'Always consider the source of information you see, and if in doubt go to trusted sources such as the ATO website your super fund website, your registered tax agent or licensed financial adviser. 'Beware of websites that might be trying to harvest your personal information such as your TFN, identity details or mygov login details.'
Yahoo
14-05-2025
- Business
- Yahoo
ATO issues super warning for retirees over June 1 rule 'change'
The Australian Taxation Office (ATO) has warned Aussies not to fall for false claims that superannuation preservation and withdrawal rules are changing on June 1. A number of online articles have circulated the change, which has been labelled 'fake news'. The articles falsely claim the superannuation preservation age will be increased from 60 to 70 by 2030, starting from June 1, 2025. Some also wrongly claim lump sum withdrawals will be capped at 50 per cent of a person's balance, rather than being fully accessible. ATO deputy commissioner for superannuation Emma Rosenzweig said she was aware there was false information circulating about changes to superannuation preservation and withdrawal rules. RELATED Australians urged to claim $17.8 billion in lost superannuation after ATO pays out $502 million Retirement warning as controversial $3 million superannuation tax change looms: 'Be proactive' Accountant reveals $37 meal expense the ATO lets workers claim on tax: 'Without a receipt' 'This is false. The maximum preservation age (the age when you can access your superannuation savings on retirement) is 60 for anyone born from 1 July 1964,' she said. 'Always consider the source of information you see, and if in doubt go to trusted sources such as the ATO website your super fund website, your registered tax agent or licensed financial adviser. 'Beware of websites that might be trying to harvest your personal information such as your TFN, identity details or mygov login details.' A number of websites have been popping up, spreading misinformation, including ones targeting Centrelink recipients and promoting fake cost-of-living support or fake payment increases. Services Australia general manager Hank Jongen previously told Yahoo Finance the websites were designed to get a lot of traffic using clickbait headlines and take advantage of people interested in financial support. 'Their main purpose is likely gaining advertising revenue through website traffic, rather than phishing for personal information,' he said. 'However people should not give out their personal information, including myGov sign in details, to access fake payments or payment increases.' There are some genuine superannuation changes kicking in for Aussies from July 1. The super guarantee rate will increase from 11.5 to 12 per cent. This is the amount employers have to pay their employees. It is the final legislated increase. Superannuation will also start being paid on the government's Parental Leave Pay. That means parents will get an extra 12 per cent of their payment as a contribution to their super fund. The transfer balance cap, which limits the amount of super that can be transferred into the retirement phase, will increase by $100,000 from $1.9 million to $2 million. The government also plans to increase the tax rate for earnings from superannuation in the accumulation phase from 15 to 30 per cent on accounts with more than $3 million. This is due to come into effect from July 1, but it is not yet law.
Yahoo
01-05-2025
- Business
- Yahoo
ATO warning over Centrelink payment as 82 per cent of Aussies get it wrong
The Australian Taxation Office (ATO) has warned businesses about reporting their income correctly if they received a natural disaster payment this year. Services Australia has dished out multiple forms of these payments due to flooding in different parts of the country. While the Centrelink cash boost has come from a government agency, the ATO has issued a reminder that it's still part of your assessable income. The tax office recently quizzed business owners about this and 82 per cent of them got it wrong. "The answer depends on the 'type' of support payment received," the ATO said. Accountant reveals 'easy' ATO tax hack giving Aussies 'big' $8,287 refunds Woolworths worker with three jobs shares bank balance as average Aussie savings revealed Banks reveal impact after Aussies try to drain ATMs in cashless protest Some support payments handed out by Services Australia don't need to be included on your tax return, and you don't have to pay any tax on them. However, the ATO has a very short list of what those payments are: Cyclone Seroja 11 April 2021 2021 storms and floods recovery grant 2019–2020 Bushfires Relief recovery payment 2019 North Queensland floods recovery grants 2019 Restocking, replanting or farm infrastructure grantsThat means the disaster payments from ex-Tropical Cyclone Alfred, for example, which hit northern NSW and southeast Queensland in late February, need to be included on your tax return and could form part of your assessable income. The ATO said you can be entitled to claim a deduction on these payments, but only if you used the money to: purchase replacement trading stock or new assets repair your business premises and fit out pay for other business expenses Assistance payments from private funds, charitable groups or crowdfunding platforms to help you pay for your business expenses also need to be declared on your tax return. Services Australia spokesperson Hank Jongen told Yahoo Finance there was a lot of confusion when these natural disaster payments were issued after Cyclone Alfred. The federal government works with state and territory governments to provide support to people affected by a natural disaster event, and they can dish out payments under the umbrella of the Disaster Recovery Funding Arrangements (DRFA). Within the DRFA, those affected by Cyclone Alfred could have accessed the following: Emergency/Personal Hardship Assistance Grants (NSW & Queensland): $180 for individuals and up to $900 for families to cover essentials like food, clothing, and medicine. Essential Services Hardship Assistance (Queensland): $150 per person, up to $750 for families of five or more, to assist with immediate needs following the loss of essential services at home for more than five consecutive days. Essential Household Contents Grants (Queensland): Up to $1,765 for individuals and up to $5,300 for couples or families to replace destroyed essential household contents. Structural Assistance Grants (Queensland): Up to $80,000 for uninsured, income-tested owner-occupiers to help repair or replace a disaster-damaged dwelling and restore it to a safe and habitable condition. Essential Services Safety and Reconnection Scheme (Queensland): There are two parts to this grant – uninsured, low-income, owner-occupiers may receive: But more broadly, these are the usual payments you can receive after a natural disaster: Disaster Recovery Allowance (DRA): This can provide up to 13 weeks of income support for people living and working in affected areas who have lost some or all of their income due to the disaster. It's paid at either the JobSeeker or Youth Allowance rate, depending on your personal circumstances. The maximum Jobseeker amount per fortnight is $1,011.50, meaning the most you could receive over the 13 weeks would be around $6,574. The allowance is paid fortnightly from the date you started losing income as a direct result of the disaster. Australian Government Disaster Recovery Payment (AGDRP): This is a one-off payment of $1,000 per adult and $400 per child for those who were significantly affected by the disaster and need assistance. For example, if your principal place of residence has been destroyed or sustained major damage as a direct result of the disaster. So, if you received any of these in the past few months, as well as the flooding assistance for those affected in Western Australia, you'll need to chuck these on your tax return.
Sydney Morning Herald
22-04-2025
- Business
- Sydney Morning Herald
We're retired, how can we get additional income outside our super?
The information you were given is wrong. Services Australia general manager Hank Jongen tells me they encourage customers to notify them when their circumstances change, to ensure the correct payments are being made. This includes changes to Australian-listed shares for both customers and their partners. If there is a change of $2000 or more in the combined value of investments, they must be informed within 14 days. They also need to be notified if there are changes to the number of shares or investment units held. For changes under $2000 to shares, investments, bank balances, or loans, reporting is optional. Listed shares, securities and market-linked managed investments are automatically revalued on March 20 and September 20 each year. You can request a revaluation at any time, with no limit on the number of requests for shares or managed investments. When a revaluation is requested, all unitised managed investments and listed shares on your record will be included. Given the current share market volatility, it may be worth contacting Services Australia for a revaluation to ensure your pension is correctly calculated. If you are receiving a part-rate payment, advising them of any reduction in asset values could also be to your benefit. My husband turns 67 at the end of this month and I'm 65. We're retired, own our home, and have a mortgage-free rental property. We both have super from working for the WA state government. We're thinking of selling the rental in the next financial year. If I contribute some proceeds to my super (still in accumulation phase), will Centrelink count that as an asset when assessing my husband's age pension eligibility? Loading Would it be better to keep the rental for now, or should he delay applying for the pension until after the sale and contribution? Our combined assets, including the rental, are around $800,000. Rent is $1200 per week. Money in superannuation in accumulation phase is not counted by Centrelink until the member reaches pensionable age. Therefore, selling the property and contributing the proceeds to your super – within your available limits – could make sense. Watch for capital gains tax. Tax-deductible contributions may help reduce this, and catch-up rules might boost how much you can contribute and claim as a tax deduction. Seek advice from a financial adviser and be aware that your husband must meet the work test to make deductible contributions after turning 67. My father entered aged care in April but is in rapid decline. We're trying to understand how the 1 July changes will affect him if he's still in care. You mentioned the home is exempt while my mother lives there, which I believe applies to the age pension. But for the aged care means test, isn't $206,663 of the home's value still counted? With assets of $470,275 dad is paying $17.35 per day in means-tested fees plus the basic daily fee. We haven't paid the Refundable Accommodation Deposit (RAD) yet, as it would leave mum with very little. The home is exempt for both pension and aged care means testing when a spouse lives there. The aged care reforms taking effect from July 1, 2025 will not affect your father as his aged care costs are grandfathered under the existing rules.
The Age
22-04-2025
- Business
- The Age
We're retired, how can we get additional income outside our super?
The information you were given is wrong. Services Australia general manager Hank Jongen tells me they encourage customers to notify them when their circumstances change, to ensure the correct payments are being made. This includes changes to Australian-listed shares for both customers and their partners. If there is a change of $2000 or more in the combined value of investments, they must be informed within 14 days. They also need to be notified if there are changes to the number of shares or investment units held. For changes under $2000 to shares, investments, bank balances, or loans, reporting is optional. Listed shares, securities and market-linked managed investments are automatically revalued on March 20 and September 20 each year. You can request a revaluation at any time, with no limit on the number of requests for shares or managed investments. When a revaluation is requested, all unitised managed investments and listed shares on your record will be included. Given the current share market volatility, it may be worth contacting Services Australia for a revaluation to ensure your pension is correctly calculated. If you are receiving a part-rate payment, advising them of any reduction in asset values could also be to your benefit. My husband turns 67 at the end of this month and I'm 65. We're retired, own our home, and have a mortgage-free rental property. We both have super from working for the WA state government. We're thinking of selling the rental in the next financial year. If I contribute some proceeds to my super (still in accumulation phase), will Centrelink count that as an asset when assessing my husband's age pension eligibility? Loading Would it be better to keep the rental for now, or should he delay applying for the pension until after the sale and contribution? Our combined assets, including the rental, are around $800,000. Rent is $1200 per week. Money in superannuation in accumulation phase is not counted by Centrelink until the member reaches pensionable age. Therefore, selling the property and contributing the proceeds to your super – within your available limits – could make sense. Watch for capital gains tax. Tax-deductible contributions may help reduce this, and catch-up rules might boost how much you can contribute and claim as a tax deduction. Seek advice from a financial adviser and be aware that your husband must meet the work test to make deductible contributions after turning 67. My father entered aged care in April but is in rapid decline. We're trying to understand how the 1 July changes will affect him if he's still in care. You mentioned the home is exempt while my mother lives there, which I believe applies to the age pension. But for the aged care means test, isn't $206,663 of the home's value still counted? With assets of $470,275 dad is paying $17.35 per day in means-tested fees plus the basic daily fee. We haven't paid the Refundable Accommodation Deposit (RAD) yet, as it would leave mum with very little. The home is exempt for both pension and aged care means testing when a spouse lives there. The aged care reforms taking effect from July 1, 2025 will not affect your father as his aged care costs are grandfathered under the existing rules.
