YOURLifeChoices subscribers, Glenn and Jennifer, would like to gift money to their children but are keen to know the limits?
Q. Glenn and Jennifer
One is allowed to gift to our children $30,000.00 over five years. After the five years elapses are we allowed to gift another $30,000.00 over the next five years?
A. Provided by Centrelink
If you or your partner are receiving the Age Pension, your payment may be affected if you gift or transfer assets over the allowable gifting amount or “gifting free area”. The allowable gifting (disposal) amount in each financial year is $10,000 but there can be no more than $30,000 gifted in any five year period.
The $10,000 rule is applied first and the total of gifts made in a financial year which exceed $10,000 would be assessed as a deprived asset. The $30,000 rule only applies to the amount of the allowable gifting amount ($10,000) used in each financial year.
In total, you are allowed to gift $30,000 in any five year period. Once the $30,000 limit is reached, any subsequent gifts are assessed as deprived assets for five years. Any amount that is assessed as a deprived asset does not count toward the $30,000 limit.
We would strongly encourage you to get in contact with a Centrelink Financial Information Services Officer (FISO) to discuss your options. FIS is a free and independent service, and the FIS Officer will be able to help you explore your options. You can contact Centrelink’s Financial Information Service on 13 2300.