“I am now a full-time carer for my wife with stage four incurable cancer. I receive both carer's payment and carer's allowance, I have a share portfolio of $50,000 with various companies, I don’t receive dividends and do buy and sell occasionally - maybe a few times a month. My combined assets are about $150k. I have one stock in which I have 465,000 shares at the current price of 9c per share. If that stock was to triple and I want to sell before the profit disappears, will this affect my carer's pension say if I sell for $30,000 profit?"
-Question from Paul in Greenslopes, QLD
Top answer provided by:
Ross Monteleone
Dear Paul,
Thank you for your question and hope you find my answers helpful.
Basically, the Carer’s Payments and the Carer’s Allowance are tested very differently.
Carer's Allowance is relatively straightforward. To qualify, your adjusted taxable income must be below $250,000 (combined), and there is no assets test. Adjusted taxable income includes various sources, and based on your situation, it seems you would comfortably meet the income threshold.
Below is a link from Services Australia explaining what is included in adjusted taxable income:
What adjusted taxable income is - Carer Allowance - Services Australia
On the other hand, Carer's Payment is more complex. It considers dividends as income, but given your scenario of no dividends, this should not pose an issue. The payment is affected once your combined income exceeds $3,544 per fortnight, with no allowance if it goes beyond this limit. However, if your income is under this threshold, the payment may still be reduced once it exceeds $360 per fortnight.
Moreover, an assets test applies following standard pension rules. You mentioned combined assets of $150,000, which appears to be within the allowable limits based on the test thresholds.
Below is a link from Services Australia explaining the assets test for Carer’s Payment:
Assets test for Carer Payment - Carer Payment - Services Australia
Regarding capital gains, it might be considered an extraordinary lump sum, not derived from working, and could potentially fit into the excluded lump sum category.
Below is a link from Services Australia explaining lump sums while receiving Carer’s Payments:
Lump sums while on income support - Carer Payment - Services Australia
Sending heartfelt wishes for strength and courage as you care for your wife during this challenging time.
May each moment be filled with love, and may you find the strength to face the days ahead. You're in our thoughts, and we wish you both comfort and peace.
All the best,
Ross Monteleone
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