My wife and I have a self-managed super fund (SMSF) and we are considering buying an apartment, to be held in the fund and rented out. The value is likely to be about $500,000. The SMSF does not own any other real estate. How is the land tax calculated; is it the same procedure as for an individual (same threshold and same rates per dollar above it) is any land held outside the fund by the fund members ignored? N.W.

In both Victoria and NSW, land tax is levied on super funds as on individuals. In NSW, it is at a rate of $100 plus 1.6 per cent on amounts above $369,000 in 2009, to $2.25 million, then 2 per cent. See osr.nsw.gov.au. In Victoria, it scales up in five steps from $275 plus 0.2 per cent on amounts above $250,000. See http://www.sro.vic.gov.au. Private properties and those held in super funds are taxed separately. Just be sure to talk to your tax agent and to register correctly for land tax.

Pension eligibility

In what context is self-employment not counted in relationship to pension eligibility? We are self-employed in as much as my husband has "assigned copyright" of books he writes to my name; therefore the "income" is declared and tax paid in my name. As I am over the pension age does this mean that I only have to advise Centrelink of this income origin to receive some pension payment? P.K.

It is an unusual case but I believe that the income will be judged to be your husband's for Centrelink purposes. However, they would have to study your particular situation on its merits. It shouldn't really matter since the means tests count a couple's combined assets and income and, where one partner is claiming the pension, award half the married age pension granted.

Super tax advantages

Many commentators referring to the new, tighter super contribution limits effective from July 1, 2009 ($25,000 for under 50s and $50,000 for over 50s) fail to mention that in addition to these limits on deductible contributions and salary sacrifice, there are much more generous limits on non-concessional contributions (up to $150,000 per year or $450,000 in advance for the next three-year period). Could you explain the longer term tax advantages. I fear that many people actually think the $25,000/$50,000 limits are the absolute limits on their capacity to build up their superannuation assets. Regarding your comment that young people with no dependants don't need life insurance, what about the risk of accident/illness? J.W.

You are correct in that the caps on untaxed non-concessional contributions or NCCs are set at six times those of the standard, taxed concessional contributions. And while there may be less tax to pay on income earned by these investments while in a super fund, the fact that this money cannot be withdrawn tends to make people hesitate, at least until they are in sight of retirement.

Regarding insurance, there is life cover and salary continuance cover. If a young person with no dependants passes away, there is little point in a life policy payout. But you are correct in pointing out that young people should take steps to investigate what cover they have in case they get ill or injured.

Those who are employed should check what salary continuance cover is provided by their employer's super fund and if they are automatically enrolled. Many funds have automatic life cover from which you have to opt out if you don't need any. In the case of young people, I see this largely as group insurers broadening their pool with a low risk of payout. It's good for the life company; it's not much use to the young single person.

Those who are self-employed should also check their private super fund for such cover and, if none is available, either look for a super fund that does offer it or consider buying it directly from a life company.

If you have a question for George Cochrane, send it to Personal Investment, PO Box 3001, Tamarama, NSW, 2026. Helplines: bank ombudsman 1300 780 808; pensions 13 28 00.