Overseas Forex Trading and Centrelink Payment

Hi members/experts,

I am currently on a parenting income support payment that is paid fortnightly by Centrelink. I have to declare my and my partner's fortnightly incomes to get correct payment. My partner has a fixed income from the employer and I have none.

Of recently, I have invested about 2k USD to a forex trading firm overseas, which trades for me and posts daily profit (they are not much (few tens) and loss based on trading. They are put to my online account with them. Unless I withdraw the amount to my bank a/c here in Aus, they are kept securely to my online account with them. I have not withdrawn any amount so far.

So, my question is:

I have not so far declared this to Centrelink as I'd no idea. So, given my circumstances, would you pls tell me how to do this. Do I have to declare these paltry amounts every fortnight even if I have not withdrawn the amount to my bank a/c in Aus?

or there is an efficient way to do this say on an annual basis.

I have seen DEEMING option in Centrelink website to account for this sort of activity but was not very sure of how this is done.

welcome your inputs and advice from members (who've been through such a situation) how to handle this issue.

Thanks.

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Comments

  • +21

    Welcome to OzCentrelink please hold the line for the next 48 hours and someone will be with you to tell you they don't know.

  • +9

    Of recently, I have invested about 2k USD to a forex trading firm overseas, which trades for me and posts daily profit (they are not much (few tens) and loss based on trading.

    Forex isn't something people invest in.

    They are put to my online account with them. Unless I withdraw the amount to my bank a/c here in Aus, they are kept securely to my online account with them. I have not withdrawn any amount so far.

    This scream like an exit scam or a rugpull.

    Please dox the trader for your safety.

    • +5

      Second this sounds like a scam, very much so.

      • +1

        Yup. If I am such a good trader making 20%+ why won't I just borrow at 3% against my house and trade with that?

    • +1

      I was going to disagree with you until I saw this:

      which trades for me

      If you are too scared to post them here at least report them to please! Please do it to stop others from getting scammed.

      https://www.scamwatch.gov.au/report-a-scam

  • +2

    Sounds like a scam…

  • +23

    You have $2k USD just to play around with and risk losing yet happy to claim Centrelink payments. This is the real scam.

    • Glad I wasn't the only one thinking that…

    • -1

      People have the right to social security as basic human right. Social security payments are affected by assets, income (and may be savings) and should paid to people as long as they meet the criteria.

      Article 22
      Everyone, as a member of society, has the right to social security and is entitled to realization, through national effort and international co-operation and in accordance with the organization and resources of each State, of the economic, social and cultural rights indispensable for his dignity and the free development of his personality.

      • +1

        To be specific in Australia

        level of benefits to all individuals and families that will enable them to acquire at least essential health care, basic shelter and housing, water and sanitation, foodstuffs, and the most basic forms of education.

        No mention of US Forex trading here

        • +2

          They still have the right to get paid as long as they meet the criteria.

          You could get a part payment if you meet all of these conditions:

          your income is less than $1,136.34 each fortnight
          your partner’s income is less than $2,105.67 each fortnight
          your combined income is less than $2,273.34 each fortnight.
          Your partner can have income up to $1,137 gross each fortnight before it affects your payment.
          https://www.servicesaustralia.gov.au/individuals/services/ce...

          • -1

            @rektrading: The 'right' doesn't mean you need to. If everything is good financially (which I gather it is) then taking it for the sake of it is a bit rich.

            I'm probably just jealous, or maybe just pi$$ed off, as I've never received a benefit or been entitled to one. I pay a sh!t tonne of income tax and this stuff really irritates me.

            • +2

              @MS Paint: At least your marginal tax rate is less than 100%…

              In my current situation on Carer's Payment I can't work any more, lest I lose:

              • PAYG increases
              • FTB reduces
              • Wifes disability payment reduces
              • Carer's payment is CANCELLED if I work any more hours.

              My latest budget I worked out I'd have to jump from 20hrs to 50hrs working each week, just to get back to our current weekly income

            • +4

              @MS Paint: Mate, seriously there's nothing to be jealous of. They treat you like dogs and you are seen as the scum of society to live under the poverty line. Centrelink (jobseeker) is only a small portion of where your tax goes.

            • +2

              @MS Paint: Comments like this tell me why people are so ignorant of what it’s really like on Centrelink.

            • +1

              @MS Paint:

              The 'right' doesn't mean you need to. If everything is good financially (which I gather it is) then taking it for the sake of it is a bit rich.

              LOL … as our fat politicians are doing?
              Like claiming "travel allowance" whilst in Canberra.
              And everything else really.

              As if 2K in USD (about 2,300 AUD?) means being financially well off … IT DOESN'T EVEN BUYS YOU A CAR !!!!

              About one (1) week pay for many of our public "servants".

              Please ….

              • @LFO: Plenty of used corollas going for 2k

                Not high yield enough for you?

                • @randomusername2017:

                  Plenty of used corollas going for 2k

                  Any of those Corollas for $2K are roadworthy? Able to get registration?

                  If they are, could you please share that detailed info.
                  Sounds like a bargain, an OzBargain !!

                  Cheers!

      • Implementation
        Globally the access to social security is low and 80 percent of the global population have no access to any formal social security protection.

      • +2

        Sure, I have no problem there being a safety net for those that genuinely needing it. I've needed it through my life.
        I also have and do work and pay taxes, which obviously goes toward our social welfare programs.

        When people are spending large amounts of money on non-essential items, especially risky investments where they can afford to lose the money, clearly they aren't the target group of individuals that social welfare is really intended for, and that's where I disagree with people receiving it.
        If people have expenses so low that they can save and therefore spend that saved money as they wish, clearly they could support themselves with a job of some description.

    • +1

      Where's the risk?

      Now if only crown would accept centrepay cards…

    • What is classy when rich people do it but not classy when the poor do it?

      • I give up. What is classy when rich people do it but not classy when the poor do it?

        • +2

          Take money from the government.

        • +2

          Probably referring to companies that kept jobkeeper even though they obtained record high profits
          Or the mining companies which pay very little tax, take natural resources and send the money overseas
          Or (more specifically to the US) government bailouts and no repercussions of banks that mishandled and took massive gambles on people's money
          Or the millionaires/billionaires that avoid tax like the plague and pay very little/no tax

          Except, these people are seen as smart, intelligent and amazingly awesome for finding legal/tax loopholes to exploit costing billions of dollars and/or influencing policies in their favour from lobbying while those struggling to make ends meet and choosing between food, a roof over their head or new clothes, are evil, scalpers, and scum among us.

          I don't know how much you earn but you're probably middle to higher middle class by the fact that you said you pay a lot. The people living under the poverty line aren't the ones you should be mad at. They're just trying to survive, the rich who avoid tax are just greedy, there's absolutely no comparison. If big corporations and millionaires/billionaires paid their share, then maybe YOU wouldn't have to pay so much. Cutting JobSeeker isn't gonna do much.

          • @bkhm: I know several couples/families that rely on social welfare to keep their heads above water and have no problem with part of my income tax supporting them. They definitely don't have $2k USD to gamble. That's my gripe.

            • +1

              @MS Paint: I agree, this shouldn't be done. I don't know whether OP is a troll, a gambling addict, or legitimately trying to improve their financial situation because I hear it all the time, 'the poor need to invest their money' and it's just lack of education/poor judgement or a desperate attempt. So I'm going to hold my judgement on this one. Either way, my comments were more general than regarding OP, that there is double standards when it comes to the rich and the poor. When it comes tax, the rich get away with way more than the poor but very few people even seem to bat an eye and instead defends them which is hilarious.

            • +4

              @MS Paint: Mate the only ones profiting out of Centrelink are the job agencies for instance Sarina Russo is one of the richest woman in australia or the foreign parent company of max employment maximus listed on the nyse with a market capitalisation of over 5 billion dollars.

              Mate during the lockdown in 2020 scomo gave the job agencies $500m dollars in subsidies.

              The unfounded anger directed at individuals getting Centrelink needs to be redirected to the real profiteers of Centrelink THE JOB AGENCIES.

  • Member Since
    1 hour 6 min ago

    • +3

      and? he created an account to post this query he has. I remember some members posting this on my first thread as well.

  • +7

    +1 Original content

    *No Covid
    *No CCP
    *No Insurance/Accident
    *No Car related
    *No BTC

  • +2

    Well, at least you likely have a $2k usd CGT loss to declare she this turns out to be a scam.

  • $44,500 @ 0.25% per year.
    Anything over $44,500 is deemed to earn 2.25%.

    Source: Services Australia

  • Seems pretty dodgy. I suspect this would be a capital gains tax issue that gets taxed at your marginal rate. As its not employment earnings i doubt you need to report it to Centrelink but the ATO will want their cut if you have anything left at tax time.

    This seems like a scam so I would withdraw all the money (this could be difficult) and invest it in an ETF or index managed fund. They are not sexy but you are unlikely to lose all your money.

  • +1

    I have not so far declared this to Centerlink as I'd no idea.

    Yes you do…

    All the info was in your application to Centrelink.

  • All I know is you have to report it to the ATO come tax time, and possibly Centrelink. As it's not a huge amount like a couple of hundred of dollars a week, I would just report it maybe once every quarter to Centrelink, but hey… I don't work for Centrelink, or their new name Services Australia.

    I trade in ASX, and there are companies, managed funds etc… that trade on the USD.

  • I believe ALL INCOME means ALL INCOME not how much you spend or withdraw from your total income amount from your bank acc

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