[wizzbef]

Hi
My husbands job was terminated on Monday due to a work injury. I work PT gross pay of $250 PW. Hubby will receive some Work cover Payments, which combined will fall within the Low Income HCC Threshold.
Question. We have a negatively geared property. Rental Income PW is $195 but I think Mortgage payments would be $260 PW. I do recall we got a HCC when I was on maternity Leave and I had to tell Centrelink how much our investment mortgage was.
So do they take the mortgage into consideration?
Thanks Liz

[ryansmummy]

Yes, we are in a similar position, and they count any negative or positive amount as as a positive amount. So if you negative gear your property and lose $5,000 p/a then Centrelink claim this as $5,000 income. And the same if the property is positively geared. We try and make ours as neutral as possible as we are sitting on the upper limits of the income threshold, but it may not make a difference to you.

HTH

[remoteness]

Sorry, Ryansmummy isn't correct. If the property is positively geared, eg $5,000 profit, this adds onto your other income. If it is negatively geared, it's as though the loss never occured.

Eg
Other income 50000
Profit 5000
TOtal income 55000

Other income 50000
Loss 5000
Total Income 50000 (NB Taxable income would be 45000)

Hope that makes sense.

THe other way of describing the loss, is Taxable income + loss (which I think is where Ryans mummy was coming from, but not strictly correct)

eg Tax Inc 45000
Add loss 5000
Income for C/L 50000 (same result as eg 2 above).

Any q, please ask.