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:

1. Calculate James' assessable assets and financial assets.

1. Calculate James' Age Pension entitlement.

1. Calculate James' total gross income from all sources on annual basis.

1. Discuss any legal strategies that you can suggest to assist James to maximise his pension entitlement.