How can we help our children save for a home?

Also note that the tax office will consider all concessionary contributions and income as taxable income in your hands, and will therefore withhold an amount of tax based on your expected marginal tax rate, including Medicare, deduction made of 30%, or 17% if unable to estimate your tax rate.

Frankly, the tax benefits could be considered marginal, probably compensated by the complexity and the time required. I think this program will be even less popular than Kevin Rudd's 2007 First Home Saver program, which simply contributed 17% to your bank account, generating an annual profit of about 20% and taxed at a flat rate. 15%. Even that was considered too complex and abolished in 2015.

You mentioned that your children earned about $ 40,000, which is less than half the average earnings in Australia, currently $ 82,400. I strongly believe that the best investment that young people can make is to make themselves, through their education, which helps them to earn higher income throughout their working lives. Could your $ 5,000 help them get more education in the field of their choice or even reduce an HECS / HELP bill?

I am an 88 year old British citizen living in Australia since 1991. I have a 91 year old British sister who is frail and ill. I entrusted him with his estate, mainly a bungalow valued at 360,000. The plan is to distribute the proceeds between my daughter and my two grandchildren and my son, the latter in Great Britain. Given the rules of "giving", how will it be difficult? OG

Australia does not have inheritance taxes or gift taxes. Once the money is placed in your local bank account, you can distribute it as you wish. However, it appears that you are receiving an old age pension. In this case, you could lose your pension if your badets exceed $ 564,000. If that were not the case, yes, you would be subject to Centrelink's rules for donations of up to $ 10,000 a year and up to $ 30,000 over five years.

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You, or your sister, should look for answers regarding the British inheritance tax as well as details about the trust deed. For example, are you the beneficiary of the trust or simply the trustee, with your children and grandchildren as beneficiaries?

The simplest approach, from your point of view, is that your sister simply creates a will that leaves succession to your children and grandchildren. You may need to act quickly.

I am a dual American-Australian citizen, having lived here for 40 years. My husband recently died in a tragic accident. I am the beneficiary of his retirement pension and it was said that I had a Super Scheme defined benefit pension and that I could have it as a source of income. However, being an American citizen with dual nationality, I would have to pay a US tax on this pension even if it is not taxed in Australia. I do not see how this money can be subject to US tax if I consider it a pension. It's already quite difficult to find an accountant in Australia who can prepare US tax returns. J.S.

Unfortunately, US law states that US citizens are taxed in the United States. So even if they reside abroad, they have to file a US tax return. And, yes, since American pensions are taxed, Australian pensions are thus paid to a double citizen. This pension allows you to opt for a lump sum in Australia, tax-free, but you must find out about US tax.

The US Consulate offers a list of US tax advisers in Australia on its website.

With the adoption of the FATCA Foreign Tax Compliance Act, Australian institutions are now required to inform the US Internal Revenue Service of bank accounts, pensions, and so on. US citizens, but not pension accrual accounts. The media reports that an increasing number are abandoning their US citizenship. If you had the chance to live in this wonderful land of Oz, why would not you?

I have term deposits at Bendigo Bank and I am offered a higher rate at St George Bank. Are there more risks with this bank and are they real deposits up to $ 250,000 guaranteed by the government? J.M.

St George is a subsidiary of Westpac and, like all banks, both are regulated by the Australian Prudential Regulation. Yes, the government guarantees the first $ 250,000 of a depositor's badets in each bank.

Although the future is still cloudy and there is currently a risk of collapse of the real estate market, I think it is unlikely that you would lose your money in the future. one or the other bank.

Regarding your response to LR (October 14), who attempted to warn a Centrelink office that their mother's term deposits had been reduced due to gambling. The standard procedure for Centrelink is that it's only a matter of time. a check is requested. However, in the absence of verification and in this case, a written declaration will suffice. The more general question is whether the reduction of personal badets due to gambling should be considered as a deprivation of badets. Should the taxpayer be forced to subsidize someone's personal choice to gamble? P.T.

Thanks for that. In addition, I badume that written statements, accompanied by bank statements indicating cash withdrawals, would be used to judge that they are made in good faith.

If you have a question for George Cochrane, send it to Personal Investment, PO Box 3001, Tamarama, NSW, 2026. Telephone Assistance: Australian Financial Complaints Authority (AFCA): 1800 931 678, [email protected] or GPO Box 3, Melbourne, VIC 3001. Answer all the letters.