Clarification on gifting

Paula wants to know if paying for a family member’s surgery is considered gifting.

Clarification on gifting

Paula is very kindly considering paying for a family member’s surgery, but isn’t sure if this will be considered gifting by Centrelink, or if it needs to be reported.

Q. Paula

Could you tell me what the situation is if I pay for surgery for a family member who does not have any health insurance? Would Centrelink consider this to be ‘gifting’? Do I need to advise Centrelink?
 

A. Any money you give to a family member or friend will be classed as gifting, regardless of the very kind reason for giving it. Unless you remain within the limits for gifting, which are $10,000 in any year or $30,000 in any five-year period, then this money will be assessed. You can view the current rules regarding disposing of assets at HumanServices.gov.au.

You have to advise Centrelink of any asset disposal or you may continue to be assessed for the value of the asset, or have the asset deemed for income purposes.





    COMMENTS

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    jeneregretrien
    22nd Oct 2013
    2:48pm
    Yes, Centrelink would rather people suffer, than permit this type of assistance to family members. I would like to see "gifting" rules and the Assets tests scrapped altogether as they are discriminatory in nature.
    Beach Nanny
    22nd Oct 2013
    4:16pm
    How ridiculous, if someone is getting surgery that is going to save the government anyway!
    Its amazing you pay tax forever and if you have savings then you have to let them know what you are doing with it! Too much red tape and lack of freedom of choice!
    Nan Norma
    22nd Oct 2013
    8:52pm
    Provided Paula hasn't given away any money there is a possible way she can can help. As is said you can give away $10,000 in one financial year. Which means give away $10,000 in June and another $10,000 in July. After that you need to wait until the next finacil year. It is avery hard when you have a family member in trouble and you want to help them and have the means to do so.
    Irishwolfhound
    23rd Oct 2013
    12:48pm
    Nice one Nan ! Never though of that!
    margw5
    22nd Oct 2013
    11:44pm
    I work with ageing and people with disabilities - the majority of them being migrants. They are getting Centrelink pensions, mostly either as carers for family members. They have properties overseas as well as rental properties here. They say they are not means tested because of the disabled family members, but that seems unfair as they are probably a lot better off than a lot of older Australians who seem to be means tested.. I am not being racist as I am not Australian born - I'm just saying what a lot of my colleagues and I have been noticing for years now. Any comments?
    buby
    23rd Oct 2013
    4:49am
    Yes i certainly deem that as Unfair. How do they get disability, and have never worked in australia, then get away with NOT being means tested>>??Seems the aussies priorities are screwed UP.
    Many hard working aussies shouldn't be means tested.
    I know one that arrived from pakistan, and bought an old house, then rented without renovating, and i had to live it. IT was disgusting, and the price he asked was unbelievable. NO wonder our standards have dropped. I can't become a home owner. How did he> yes lots of strange goings on here. They say assylum seekers are Poor. I so beg to Differ. The Poor are still living back in the ole country!!!
    The Government Should be Looking after its own. OH Centrelink don't give a damn about anything i don't think, cause they have now been privatised. and NOW we have mr. Abbot in, There are intentions of privatising some more. Thats NOT the way to go Abbot, you want to raise revenue, do it another way. Cuts the pollies Wages!!!
    and OUR health system gone to pot! and the oldies still suffering??
    Gee thanks


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