Our first blog entry will be comments on an often mistreated gifting rule. Often pensioners will accidently misrepresent the purpose of the money, and be adversely treated by Centrelink. While the pensioner may use the term ‘gift’ to Centrelink, depending on the use of the money it may be ‘ignored’ by Centrelink. Centrelink will only allow a gift of $10k per year, or $30k over 5 years. Hence if a pensioner gifts $100k, the reduction in assessed asset base will be as follows: Year 0 $100k Year 1 $90k Year 2 $80k Year 3 $70k Year 4 $70k Year 5 $70k Year 6 $0 Noting that independent of the value of the gift after 5 years the gift value will be ignored by Centrelink. Centrelink say… "Gifts may be assessed for 5 years from the date of transfer and deemed income will apply". "Gifting does not include you selling or reducing your assets to meet normal expenses, for example, to buy consumer goods like a fridge or washing machine, for home maintenance/impro...
Your age pension concierge service for Centrelink. Case studies and observations on claiming and maintaining the Centrelink age pension in Australia. The objective of this blog is to inform and promote discussion. Information contained within is generic and does not constitute advice, and professional assistance is recommended before any action taken with Centrelink.