I would like to know what a pensioner (old age) is allowed to earn before he has to pay tax. I have 2 small pensions from overseas and a part Australian pension, all up about $30,000. per year. I have a small parcel of shares, which had a hammering in the last year or so, if I sell a few shares, not more than $7000, do I have to pay tax on this? Looking forward to your reply.
A.Harry, it all depends on your individual circumstances and whether you can claim any of the tax offsets available to you. To ascertain what you would be liable to pay, you should contact the ATO. We have contacted the ATO, who will not comment on individual however, they have passed on the following information:
Tax rates 2008-09
Tax on this income
$0 – $6,000
$6,001 – $34,000
15c for each $1 over $6,000
$34,001 – $80,000
$4,200 plus 30c for each $1 over $34,000
$80,001 – $180,000
$18,000 plus 40c for each $1 over $80,000
$180,001 and over
$58,000 plus 45c for each $1 over $180,000
There are some tax offsets available to seniors and the Senior Australians tax offset calculator available on the Tax Office website can help people work out whether they are eligible for the senior Australians tax offset and if so the amount.
More information for seniors and retirees is available at //www.ato.gov.au/individuals/pathway.asp?pc=001/002/025