Opinion
I’m retired and working as an Uber driver. Do I need to log my hours?
Noel Whittaker
Money columnistI want to make a $100,000 concessional contribution to super, but my problem is the work test. I am retired, so I joined UberEats using my ABN. The challenge is proving I work 40 hours in a 30-day period. UberEats requires you to log in showing that you are available, then wait for notification of a job in your area. You are not required to accept every or any job. I log on during the day and accept jobs that are local. I keep a spreadsheet log showing the hours that I am logged into the app to prove my 40 hours. To confirm that I am completing the work test requirements to the satisfaction of my super fund and the ATO I rang them. The super fund says it is the ATO’s responsibility to accept the worksheet log. I am lost.
Super funds do not have to be satisfied the work test has been met. It is just the ATO.
An ATO spokesperson tells me that the work test requires you to provide evidence of gainful employment for a minimum of 40 hours, as an employee or self-employed person, in a period of 30 consecutive days during the financial year in which a contribution is made.
Keeping your affairs tax compliant can be a tangle, especially once you’re retired.Credit: Simon Letch
Australia’s tax system relies on self-assessment, so it accepts that the information you give is accurate. If the ATO reviews your tax return, and you don’t have evidence to support claims for a deduction, your claims can be disallowed.
As with all deductions, you should keep a record of the hours you worked, so you can demonstrate how you met the work test. It looks like you’re on the right track.
I have one accumulation account and two pension accounts. Both pension accounts were commenced in 2017. Since 2017 all accounts have grown. To save fees, I was planning to close both pension accounts and roll them into my accumulation account and then convert that account to a new pension account. However, am I correct in thinking that the capital growth in the two original pension accounts would then be counted towards my Total Balance Cap (TBC) as well as the additional amount from my accumulation account?
John Perri of AMP Technical says that the TBC system works on a series of “credits” and “debits”. When you started your pension accounts in 2017, the amounts were treated as a “credit” and counted towards your TBC at that time.
These pension accounts have grown in value, and if you roll them back into accumulation phase, then the amount rolled back is counted as a “debit” against the original amount first counted as a “credit”. It is possible an individual’s TBC may become negative if their debits exceed their credits.
For example, If I started a pension with $500,000, then $500,000 is credited to my TBC. If it grows to $600,000, and I roll back to accumulation, $600,000 is debited to my TBC, which should now be minus $100,000.
If I then start a new pension with the $600,000, that amount is credited and given there is already a minus $100,000 balance, then the final position is still $500,000. The system has been designed not to include growth/earnings in the cap where this occurs.
In your case, the only extra amount that should be counted against your TBC is the additional amount in your accumulation account that is being used to start the new consolidated pension.
My wife is the executor for her 90-year-old mother. She has her home plus an investment property and both are pre-1985. Is there any time limit on when the properties can be disposed of after death?
If you sell a pre-1985 property within two years of death, there is no CGT. Pre-1985 properties start with a cost base of market value at date of death so even if not sold within two years the CGT should not be too horrendous.
I have been retired for several years and receive an indexed reversionary pension of $710 per week plus another $200 a week from a non-reversionary pension that will expire soon. I also have shares that generate about $160 a week in fully franked dividends. We are currently downsizing our mortgage-free home and intend to put $300,000 into my wife’s superannuation as a downsizer contribution, and she will then retire with a super balance of $500,000. We are going to turn this to an income stream. How long after retirement is my wife able to work part-time? She is 63.
Having reached 60 she has reached her preservation age, and once she retires she has satisfied the condition of release to access her superannuation before 65. Having done that there are no restrictions on when she does any part-time work.
Noel Whittaker is the author of Wills, Death & Taxes Made Simple and numerous other books on personal finance. Email: noel@noelwhittaker.com.au
- Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.
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