0% taxpayer and NG

Hi...

Could a worker earning below the $18,200 threshold, claim net IP loss of ~15k from interest, maintenance, depreciation etc?

If so, is it correct that they would not receive any tax refund, as no tax was paid, but could offset accumulated losses against a taxable income any number of years into the future?

Say they currently earned $10k from a part-time job, would their income as far as Centrelink is concerned be $15k, even though they had not had any of that back as a refund?

Cheers,
 
Center link add back investment losses to your income, for family tax benefit anyway, I'd assume same same for everything.

So in the example below your income would be $25k as far as Center link is concerned.
 
You've fallen for the ng is good for the tax breaks line. It works if you're in the higher tax brackets but a 100% refund at 0% is worthless in anyone's books.
 
I have many o'seas clients with accumulating tax losses on their IPs. On first glance you may wonder why they bother ??

The tax loss ifs carried forward indefinitely and can be used to change the cost base and offset CGT on a future sale. Its not wasted. or they may return to work or Australia etc and earn tax free income for a while... Tax losses are deferred not lost in many instances.

There may be some strategies for a low income taxpayer who has ownership of a -Ve geared IP.
- Spouse transfer in Vic is duty free.
- Spouse transfer in NSW from sole owner to joint / 50% TIC duty free.
etc...May even allow the new ownership share to become refreshed for neg gearing etc.
 
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