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14 Comments

  1. Stephen

     /  September 11, 2018

    Hello Liam,
    I might be missing something. Leaving aside the deeming rules, if you are using financial assets to fund an excess gift, then isn’t it a status quo outcome for the assets test – the dimunition of the bank account balance is replaced by the value of the excess gift.

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    • Hi Stephen, I am not sure which point you are are talking about. Yes if you exceed the gifting rules then the amount in excess is still treated as an asset for 5 years so the asset test outcome is the same (for 6 years) as if you had not gifted that excess amount.

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  2. James Holborn

     /  July 20, 2018

    On the 1st January 2017 my wife and I were ruled ineligible for a part pension because of higher than allowable assets. If we gift the allowable $30000-00 over 3 years ($10000 per financial year) are there any ramifications when we reapply for our aged pension.
    Many Thanks
    Jim.

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    • As long as you stick to the gifting limits there will be no ramifications and the asset test limits should also rise a little over that time too. Make sure to revalue cars and other assets as well. Consider in your circumstances if a pre-paid funeral or funeral bond might be suitable as these are not counted as assets either up to $13,000. Always take the opportunity to see or talk to a Centrelink Financial Information Service Officer about your specific circumstances by calling 13 23 00.

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  3. CARMEN DARMANIN

     /  July 18, 2018

    Hi

    I was retrenched back in 2015 and as l reached and met my preservation requirements (60) pulled out of super back in 2017 electing to paying myself my lost income, l also receive rental income on my mortgage free property.

    l live with my elderly mum as a full time career in her home with no Centrelink benefits and assist her with expenses.

    I reach pension age in the next 5 years and hoping to reduce my income to be able to qualify for a part or full pension, currently l am over the thereshold.

    Please can l ask will my assets and current income of which rental income will cease within the next 2years be assessed by Centrelink at the time of pension age application as the drawing down of my income had commence approx back in 2015 lapsing well over the 5 year period and wiping out the ledger so to speak.🐨🇦🇺🐨🇦🇺🐨

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    • Hi Carmen, I can’t give personalised advice on here so my suggestion would be to make an appointment with a Centrelink Financial Information Service Officer by calling 132300 and sit with them to look at you future eligibility so you have an idea now and can plan for the future.

      In general they will only assess you on the current income at the time of application so if you move back in to the home and stop receiving rental income then the house is exempt and you have no rental income to report. This is general advice and does not take in to account your full personal circumstances.

      You can also try a Age a Pension calculator like http://yourpension.com.au/ to run the figures yourself

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  4. Peter

     /  April 26, 2018

    I’m planning to sell my principal home with market value of $700,000.00.
    With this money I will buy a house in the Philippines worth $200,000.00 and split the $500,000.00 to my son and daughter as inheritance. Do you consider this as gifting even though it’s from the proceeds of the sale of the principal which is not included in the asset test?

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  5. wayne

     /  April 12, 2018

    I deposit $60 every fortnight into my 2 sons bank account total $120 from my carers pension doi have to tell centerlink every fortnight

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    • Hi Wayne. you are gifting $120 per fortnight which is $3120 per year. A person is allowed to gift $10,000 in any one year up to a maximum of $30,000 in any 5 year period. So you do not breach the $10,000 per year limit and over the 5 years you do not breach the $30,000. Therefore you are fine and do not need to report any of this to Centrelink as long as this is the only money you are gifting to the boys. I would suggest for peace of mind that you ask the same question to a Centrelink Financial Information Service Officer (FIS Officer) by calling 132 300. They are very helpful and you can read more about their services here https://www.humanservices.gov.au/individuals/enablers/about-financial-information-service

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  6. Helen

     /  January 22, 2018

    Can when my husband finishes his working life at 66 ( in 2years time ) transfer his super into my super account as I’m only 55 and would be still in the accumulation phase of super so we can maximise the amount he can get on the aged pension thanks Helen

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    • Short answer is yes and a good plan where there is an age difference but you need to get personal advice to ensure the strategy is right for your family and circumstances. You are locking funds away for 5-10 years minimum in return for possible higher age pension entitlements. You need to ensure you get it right. An early inheritance, changes to legislation and a number other issues could mess up your plans.

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  7. Suzanne Burrows

     /  January 15, 2018

    on 18/11/16 I borrowed $200,000 from my mother who is on an aged part-pension. I pay her interest at the rate of 3% which is almost twice the rate she was receiving on this money in the bank. I pay her back $200 per week which helps with her nursing home fees and reduces the need to draw down on her cash investments. This amount is made up of principle and interest. As a loan this amount remains an asset for Centrelink purposes.
    On 25/12/16 she gifted to me $10,000 in the form of forgiveness of principle owing. Centrelink was informed. When I update her assets I also update the balance owing on the loan.
    I would like to repeat this gifting process to hopefully get Mum a bit more pension. The reduction of principle would also result in a very small reduction of interest for me. I would seem to be within the rules for both the yearly limit and the five year limit. Can you confirm that and would this result in an increase of Mum’s pension?

    Thank you
    Suzanne

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    • Susanne, you should ask a Centrelink Financial Information Service Officer to look at your mum’s situation for certainty but a person is allowed gift $10’000 per year up to $30,000 in a rolling 5 year period. Within these rules a gift of $10,000 would reduce assets under the asset test and result in more pension if the person is asset tested.

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