Asset Test for Age Pensioners: How Much Can You Give Away?

Giving away your own assets is generally not restricted in any way unless you’re planning to apply for Centrelink or a Department of Veteran Affairs’ age pension. If you are, then you should be aware of the “gifting rules” which will be used to assess your pension entitlements.  The “gifting rules” are comprised of two asset gifting tests:asset tests

  • A single person or a couple can give away assets up to a maximum of $10,000 in a single financial year, and
  • A single person or a couple can give away assets up to a maximum of $30,000 over a period of 5 consecutive years.

Any assets exceeding these amounts will be classed as “deprived assets” and will be assumed to earn interest and classified as income.

The consequences of excessive gifting can catch you out and cost you money. If you are thinking about it and want to discuss your estate planning, please contact Sue Fleming or Adam Robinson of Hollingworth & Spencer Lawyers for professional advice.

Due to the impact of specific facts on any given case please treat this information as a general guide and not as legal advice. If you require advice on how to adequately protect your security rights please contact Sue Fleming or Adam Robinson on 07 3123 5700.