Term deposit Interest question RE-TAX

[Jasman]

hi all.everone and his dog will tell uthere spin on things.
the only thing to do is go see an accountant or maybe a financial advisor
just my thoughts

Agreed, if it is just a tax question then talk to the Accountant but if specific Investment advice and Centrelink issues are involved then talk to a Financial Planner.  Finding a good Accountant or Financial Planner is the hardest bit!

[clarky]

Hi Jet,

The advice to talk to an Accountant or a Solicitor and properly explain your specific circumstances is the way to go. I am a Chartered Accountant and based on what you have written, a loan with the term deposit mortgaged as security is the cheapest, lowest maintenance strategy to guarantee you will get the money back and shift the tax burden away from yourself.

[nab]

My family had a similar "issue" (due to an untrusted in-law) and we decided the best way was to just have the term deposit in my name and transfer the interest into their account. We paid tax on the interest but I "lost" it in the business. Never looked at the loan option though, sounds like too much dicking around for us.

[poidda]

Jet,

Do you have a mortgage?  If so, just open up an offset account against this mortgage and put your funds in there.  That way, you won't earn interest, but you will save interest on your mortgage, and therefore not pay tax.

Then give your old man the difference in interest.

The same can be done for personal loans if you're set up to allow redraws.