Question
James has recently become eligible for the Age Pension. He has the following assets and liabilities as at 1 July 2018: Details Amount ($) Personal
James has recently become eligible for the Age Pension. He has the following assets and liabilities as at 1 July 2018:
| Details | Amount ($) |
| Personal residence | 510,000 |
| Funeral bonds | 40,000 |
| Motor vehicle | 10,000 |
| Household and personal effects | 22,000 |
| Holiday home | 240,000 |
| Term deposit at 1.50% | 60,000 |
| Share portfolio at 5.50% | 30,000 |
| Debentures at 3.00% | 20,000 |
| Jewellery | 35,000 |
| Personal loan on Motor vehicle | 2,000 |
| Mortgage on Personal residence | 150,000 |
| Superannuation | 100,000 |
He is not drawing any amount from the superannuation fund. On 1 August 2018, he decided to gift one of his relatives $10,000. He also decided to take a part-time job with his local art dealer and expects to earn $150 per week.
James has come to see you for advice on 3 August 2019 for his Age Pension entitlement.
Required:
- Calculate James assessable assets and financial assets. (7 marks)
- Calculate James Age Pension entitlement. (8 marks)
- Calculate James total gross income from all sources on annual basis. (4 marks)
Discuss any legal strategies that you can suggest to assist James to maximise his pension entitlement.
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Guide To The Study Of Auditing 1914
Authors: Samuel F. Racine
1st Edition
0266614493, 978-0266614494
