How does Centrelink view gifting for medical expenses?

Font Size:

Diane would like to help her sick grandson receive some much-needed treatment but would like to know if gifting the money would affect her Age Pension.


Q. Diane
I am a retired pensioner and receive a part Age Pension from Centrelink, along with an allocated pension. I was wondering if I was to withdraw $80,000 from my Allocated Pension to pay for my grandson to have specialist treatment overseas for severe allergies (currently not available in Australia), would that affect my Centrelink Age Pension? As my assets will be reduced, I should receive an increase in my Age Pension. Is that correct and would Centrelink permit this? I really want to help my precious grandson.

A. Any sum of money that you give away would be subject to gifting. Gifting allows you to give away $10,000 each year, up to a maximum of $30,000 in a five-year period. If you gift more than these amounts, it will be considered a deprived asset and you will continue to be assessed on this amount for the five years.

You would, of course, have the value of your assets reduced by $30,000, which should result in you receiving an increase in your Age Pension. but this will not allow you to benefit from the full $80,000 reduction. 


Lump sum pension withdrawal

Will a withdrawal from an allocated pension affect the Age Pension?

The solution to the retirement poverty trap

It's possible for every Australian to live in retirement with dignity.

Written by Janelle Ward


Sign-up to the YourLifeChoices Enewsletter

continue reading

Seniors Finance

Be a savvier saver with these nine tips

Many people have seen their savings pots wiped out by the impact of the pandemic. At the other end of...

Finance News

Big four banks dragged to court over credit 'rort'

Screaming, dressed in glistening armour and wielding an axe, Aaron Flores has defended the honour of Australia on the battlefield....

Health news

Public toilets are a disease risk

The COVID-19 pandemic has forced more people than ever to consider the potential for airborne particles to damage their health,...


Kurt Russell and Goldie Hawn's best style moments

They're one of Hollywood's most enduring - and beloved - celebrity couples. Kurt Russell and Goldie Hawn started dating on...

Superannuation News

Super fund recovery steps up pace

Long-term trends such as the digitisation or economies and work automation, which have been sped up by the COVID-19 pandemic,...

Finance News

Financial advisers lobby for permanent reduction in regulation

The financial services sector wants consumer protection laws watered down, claiming they are pushing the cost of financial advice beyond...

Legal & General

Is there a safe way to block estranged child from will?

Can Angie block an estranged daughter from her will without consigning her other children to a drawn-out challenge after her...


How to stop gas pain

Flatulence, commonly referred to as 'farting', is caused by gas in the bowel. Ordinarily, the intestines produce between 500 and...