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SRP May 2010 Income test

Discussion in 'Financial Planning Study Group' started by dheevetti, 19th Aug, 2012.

  1. dheevetti

    dheevetti Member

    Joined:
    10th Feb, 2010
    Posts:
    5
    Location:
    Melbourne, VIC
    Hello there!!

    I have a question on my Superannuation assignment SRP 0510 for number 6.

    I am currently checking for eligibility of Michael and Karen for Age Pension using Income and Asset test.

    In my recommendation, I have suggested that Michael should start an account based pension from his Super money.

    In the Income test, I have now calculated the deductible amount taking into consideration the Purchase Price and Life expectancy. (PP/LE)

    I have now subtracted this amount fron the Pension amount which will now be assessable in the Income Test (Say X) .

    Please correct me if any of the above is wrong and :
    I know that the final amount I obtain above (X) is now assessable under income test.
    Could you please let me know as to how to include this in income test?
    Also, is it right that this amount will not be deemed and is exempted from deeming?
    In this case, should I initially only deem the Shares and Bank account income and add this final figure X to it finally? (Assuming that Karen contributes the amount in CMT to her Super)

    There are no examples out there on the internet!!

    Thanks in advance.