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8 Comments

  1. 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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  2. 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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  3. 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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  4. 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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