I pay more tax than my husband. Will that affect our pension?

My husband is 64, and I am 59. I work full-time with an income of $83,000, while my husband works part-time, earning $15,000–$20,000 per year. I have $190,000 in superannuation, and my husband has $230,000. Our mortgage balance is $20,000, and we have minimal other assets.

Would it be better for me to make extra contributions to my superannuation rather than my husband contributing to his, given that I pay more tax? Additionally, when my husband reaches 67 and becomes eligible for the age pension, would the tax office assess his eligibility based on my lower taxable income if I maximise my pre-tax super contributions through a transition-to-retirement strategy, or would he remain ineligible until I stop working?

A tax imbalance in your relationship doesn’t have to sink your retirement.Credit: Simon Letch

When a couple applies for the age pension, Centrelink assesses their combined financial situation, even if only one partner is of pensionable age. Superannuation isn’t counted as an asset until the owner reaches the eligible age, unless a pension has already started from that account.

Given the age difference between you and your husband, you may wish to seek professional advice on transferring some or all of your husband’s super into your account before he applies for the pension. This could help optimise your finances under Centrelink’s rules.

Keep in mind that under the income test, combined income must fall below $99,382 annually to qualify for the pension. Additionally, Centrelink counts contributions to super or starting a transition-to-retirement pension as income.

My mother – aged 90 – is selling her house to move to aged care. After paying the $700,000 Refundable Accommodation Deposit (RAD), we’re considering a downsizer super contribution.

I understand downsizer contributions are made with after-tax money and wouldn’t attract death benefit tax upon her passing. While income within super is taxed at 15 per cent, it’s still better than her 30 per cent marginal tax rate on income outside super. She has $70,000 in a super pension fund (to be drawn down quickly), $130,000 in bank deposits, and $1.9 million in fully franked Australian shares.

The house sale for $2 million provides an opportunity to rebalance her portfolio, increasing cash relative to shares. She also wants to gift $300,000 each to her three children. Would appreciate your advice.

There is no upper age limit for downsizer contributions, so provided that she meets all other eligibility rules, your mother can contribute $300,000 into super. The capital sum contributed would be payable to her estate tax-free; however, the earnings from this contribution would form part of the taxable component and be subject to a 17 per cent death tax.

Since your mother is not receiving Centrelink payments, gifting $900,000 wouldn’t have any adverse effects. However, it’s important to discuss with the children the best use of the money.

For example, some may find it most beneficial to make a contribution to super. Of course, this decision depends on individual circumstances.

My daughter and her husband are long-term renters with a young family, struggling to save for a deposit on a modest three-bedroom house in Canberra (estimated $650,000–$700,000). They likely qualify for the new Help to Buy scheme but may still find the costs difficult.

My wife and I are considering withdrawing $30,000 from our $450,000 combined super to assist. We draw $1,850 fortnightly from super and receive $1,470 from Centrelink as part of the age pension. We also own our home outright. Are there any tax implications we gift her this amount?

The money from super could be drawn tax-free – you could think about a gift of $10,000 before June 30, and the balance as a loan. Then every 1 July for the next two years another $10,000 could be forgiven and would cease to count as an asset for Centrelink. There are no tax implications

We are in our late 70s and ask if we can transfer shares off market to our daughter and son from our SMSF. Alternatively, could we retransfer the shares to us and then give them to them? Will this satisfy the annual tax audit?

I think the simple strategy is to transfer the shares to yourselves as a lump sum payment. You could then transfer the shares to your family. The market value when the transfer was made would be the cost base for CGT purposes.

Noel Whittaker is the author of Retirement Made Simple and other books on personal finance. Questions to: [e-mail]

• 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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