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Trust and Money

I hope your partners circumstances and qualifications are easily transferable, they have arranged or can find well paid work, and they can set up their own future financial success. (Transferring qualification costs are tax deductable should it lead to employment)

If both partners intend to work and be in higher tax brackets, how to split your shared funds, assets or investments is best discussed with a tax agent looking several years ahead. More kids on the horizon? Planning to post around Australia often? Meaning your partner will be stopping work periodically. Also get professional advice on whether they should be individual or shared before your 1st tax claim.

Hypothetical example of SGT Jones partner earning a much lower wage than them:

  • SGT Jones and partner sold their family home prior to moving to Australia – Retaining $220000 after paying off debts
  • SGT Jones will get a $125000 pension lump sum, keeping $80000 post car and white goods purchase
  • SGT Jones and his dependants will reside in a DHA home on initial posting to Australia. They want to take the time to figure out if they like that location or wish to post out in 2-3 years and learn different state stamp duty, incentives, HPAS and DHOAS rules prior to purchasing a property again
  • SGT Jones and his partner will have $300,000 post move and plan to invest it until they need it for a home purchase

Facts:

  • If SGT Jones and his partner are jointly named on an investment account, SGT Jones will be responsible for 50% of the tax liability on any interest earned, it will fall into the 30 or 37% brackets
  • If SGT Jones’ partner is the only name on the account, they will be responsible for 100% of the tax liability on interest earned
  • The interest earned would be in tax free or low tax brackets
  • Putting more in a sole account in just SGT Jones partner name could be the most beneficial method after factoring medicare levi surcharge

(Factual/Hypothetical/Informational only, seek professional advice from a qualified professional for your own unique circumstances and goals prior to investing)