Can I give my children cash before I apply for the pension?
I would like to retire soon, but am over the threshold to receive the pension.
If I gave my children some cash would Centerlink take that into consideration?
I would appreciate just getting a part pension because of the Medical help that is offered.
Liani.
Hi Raphael,
Thank you for your response. In reply as to why I want the Pension or rather any portion of it, I feel like this...I was left alone when I was of working age, and could have gone on the dole or widow's pension or whatever was available, but felt that as I could work, I should work, which is what I have done ever since and I am about to turn 70. Many of my friends who were in a similar situation have lived off the government for decades now and have enjoyed a life which has alowed them to have time for family and holidays which I have had very little of.
I have paid my taxes and not enjoyed the benefits that come with being on a Pension, which you are possibly aware of. Now at nearly 70, I would like to retire and have the comfort of knowing that there will be a helping hand should I need it. For example with Health Care. As I said, I don't want a lot, but just the additional benefits available to Pensioners. I have worked an extra 5 years beyond the retiremnet age and have thus added to Government revenue.
Perhaps you remember when a Pension was an Entitlement for people who had worked and paid taxes all their lives. Now the Government tries to give as little as possible to older reitred people as they can, while handing out a large portion of their tax money to young dole bludgers who have figured out how to use the system to have an easy life, and pass on this skill to the future generations which they produce.
In my work, I employ young people, and am aware of the fact that some of them have a very poor work ethic and are content to stay on the dole and complain about any deficit they perceive.
So I guess you could say, that I would enjoy a little helping hand in the next stage of my life, and I feel that I have earned it.
All the best,
Liani.
OK
Happy retirement
All depends on the Government rules IMO Liani. See below:
Gifting may affect your payment.
• A single person has a gifting free area of $10,000 per financial year, limited to $30,000 per 5 financial years.
• A couple has a total combined gifting free area of $10,000 per financial year, limited to $30,000 per 5 financial years.
If you gift more than the allowable amount … Any gift or gifts with a total value greater than the allowable amounts will be assessed as a deprived asset for 5 years from the date of gift and will be subject to the income deeming provisions.
See: https://www.humanservices.gov.au/customer/enablers/gifting
Seek professional advice would be my advice if you are not sure.
It's a good rule
stops the well off rorters bludging off the taxpayer
As per Raphael's first comment ... IMO the '5 year rule' applies. Time for an expert if unsure.
Before you make any decisions based on what you read here (which are generally correct). I would suggest you get professional advice on your own situation as general advice might not cover your situation. Approach Centrelink as they have free Financial Advisors (might have to wait awhile), or pay to get a Financial Advisor or Registered Accountant to look at your situation and what you are planning for the future to see if it is viable and legal. It is a mine field for those who do not understand the rules, so to pay for independant advise is not a bad investment. Be wary of good meaning friends and family, you want to get it right the first time. Good Luck and happy Retirement
Raphael, if you think it stops rorters bluding off taxpayers, you are very misinformed. It's a bad rule, because it encourages manipulation by those who can (those 5 years from retirement, for example, or those with hidden assets) and persecutes honest folks.
Our pension system is cruel, punitive and suppressive, and that's the key reason for rorts. People seek to get their own back when they perceive they are treated unfairly. Liani may not need a pension, but feels unjustly discriminated against. I agree. It's time for recognition that those who work hard and pay taxes should be favoured over those who make a lesser contrbution to society. We need to encourage endeavour and honesty, not keep rewarding the ''lame ducks'' and the dishonest and manipulative. Our economy is strained under the weight of all the demands placed on it, and the only way to reduce those demands is to shift the focus of welfare to be just and fair and a positive incentive to endeavour, rather than a reward for simply being poor - whatever the reason.
Universal pension is the way to go
Universal pension. Absolutely, Raphael. The ONLY sensible solution.
Don't do it
why do you want the pension when you still have assets
Anyway see below
Depends on where your cash is at the moment
if under your mattress or an overseas bank account then yes withdraw and give them the cash
any significanr transfers from overseas into your kids bank account will be questioned by the ATO
if you withdraw from your account keep receipts that show it being spent on yourself (house , travel etc )
anyrhibg you gift within 5 years of you claiming pension will be added back to your assets