If you were travelling to China next year what cash currency would you take? Some say that US dollars have lost their flavour.

Every time you change from one currency to another you are incurring fees and commissions, so my preference is direct conversion from Australian currency to Chinese currency. There are plenty of ATMs in China but, when we were there, most of them required a six-digit PIN, which caused a problem. We discovered you could solve this by putting 00 in front of your four-digit PIN.

I'm 60 and receive a disability pension. I have a substantial amount of super, which I can draw down tax-free at any time and not affect my pension. Why would a financial adviser tell me to take out an allocated pension and draw down hundreds of dollars a month? What advantage do I get by doing this?

You should ask your adviser to justify the recommendation. However, investment earnings in super are taxed at 15 per cent a year whereas the earnings in an allocated pension are tax free. Therefore you should get better after-tax returns by switching to an allocated pension fund but the drawback is the minimum amount you are required to withdraw each year. Keep in mind you could contribute any surplus funds to super without passing the work test until you reach 65.

I was under the impression that capital gains tax was only payable by beneficiaries after two years following death and on the increased value only. Is this still the case?

You are referring to the principal residence of the deceased. Just be aware that the two-year exemption only applies if the asset was the main residence of the deceased at the time of death and was not being used for income-producing purposes. Also, there will be no CGT if the asset becomes the main residence of the beneficiary. Death does not trigger a CGT liability for other assets such as investment property and shares; any CGT liability on these transfers to the beneficiaries is triggered only if they dispose of them.

I bought an investment house in 1990 for $85,000 and rented it out until 1998. We moved into it in June 1998 and lived in it until December 2008. We sold it for $355,000. Will I have to pay CGT?

As you used it as an investment property before you lived in it, CGT will be apportioned on a time basis with a pro rata adjustment for the period it was your principal residence. As you have owned it for about 18 years and rented it out for eight years, CGT will be levied on44.44 per cent of the gain. It will be reduced by 50 per cent because you had the property for more than a year. Your accountant will be able to calculate the figures in detail for you.

We have a son who is 17 years and eight months old. He recently started working in a school-based traineeship for a small local firm. He works two days a week and earns $210 a week. I told him about the advantage of starting super young and he was keen to contribute $11 pre-tax to super a week. His employer tells me he's not entitled to employer super. Is this correct? He is also about to start a casual job for the other three days a week over the school holidays. Will these same super rules apply?

Compulsory super need not be paid for employees younger than 18 working part-time (not more than 30 hours a week) or for employees earning less than $450 in a particular month. Therefore, it appears your son's employer is within his rights in not paying super.

Noel Whittaker is a director of Whittaker Macnaught. His advice is general in nature and readers should seek their own professional advice. Contact noel.whittaker@whittakermacnaught.com.au.

Questions to Ask Noel, Money, GPO Box 2571, QLD, 4000, or see moneymanager.smh.com.au/sitewide/askanexpert.