Loan Repayment from Wifes Company

I loaned around $60K to a Company now owned by my Wife. The Company has a contract to supply software and services (not classified as PSI income) for the next 12 months. I want to use some of the income to repay the loan to me. Is this income in Centrelink's eyes as I do not want it to effect my Pension.

I intend to declare $426.00 as a salary($316/2 + $300).

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Normally the Loan would be a Liability on your wife's Company balance sheet, but seen as a Financial asset of the Pensioner who the loan is owed to. As the Loan is paid back it reduces the liability of the company and reduces the loan recorded on your Centrelink file, should be no change to you as it is not your income, but a repayment of a loan.

On the provision that you originally declared the $60k as part of your total cash assets, it doesn't matter if it's a loan made to someone  or sitting in your bank account, as long as you didn't reduce your cash assets by under reporting because of the loan.   It doesn't matter that the principal is being repaid. What will matter is the Interest earned, if any, that increases your cash assets, in which case you need to report a change in your circumstances as income but only the interest earned not the principal portion of the repayment. You are allowed to earn extra income of , I think, $178 per fortnight or whatever the threshold is for extra income., but check with Centrelink if you need to report it if it's under the fortnightly threshold. Certainly, if it's over the threshold. I am generalising here because you haven't disclosed the entire personal scenario.  The rule is if your financial circumstances change by $2,000 up or down, you need to report it to Centrelink, on line if you have an account with myGov  or in person if you haven't got an account with them. Bear in mind that if you declare the $60K as gift or if you declared your cash assets less the $60k loan, you're in trouble.

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