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James Coyle
James has over 35 years experience in financial services with particular expertise in two of the key components of retirement finance - Superannuation and the Age Pension. He is passionate about providing the guidance and support that can help older Australians enjoy their best possible retirement. He lives in regional Victoria surrounded by dogs and chooks.
I’m on the pension(67) and I want to give my child $100,000 as a deposit on a house..can I do that
Hi Colleen, thanks for reaching out. Yes you can gift that money however you will need to notify Centrelink and show evidence of the amount and date gifted (bank statement is best). Then, as per the table in the article, over the next 5 years the gifting rules will be applied to the $100,000 gifted.
Is a loan still included as an asset as well as being deemed.
Hi Michael, great question! Yes you are right, loans are considered assets based on how much is owing as well as having income deemed on that same balance.
I sold some shares at age 65, so this falls in the 2021-2022 tax year. Due to circumstances I believe my “retirement” will happen when I am about 70 years of age. From the shares I sold, I received $4,500.00. Should I apply for pension before the 5 year rule, will that affect my pension?
Hi Carla thanks for the query! The scenario you have mentioned would not be counted as gifting. You owned an asset (shares) and then sold that asset. The proceeds from the sale are not counted as a gift. Gifting/lending only applies if you were to sign those shares over to someone else without getting paid for them (for example).
What about if the mother joins in the purchase of a house in order for her to also live in with the son? Is is a gift or a loan?
Hi Gerry, good question! In general this scenario would not be counted as gifting because in exchange for the money, the mother is receiving the right to live in the house. Gifting is when you give away an asset for either nothing or less than it’s market value. Centrelink refer to these scenarios as Granny Flat Interest and you can read more about it HERE.
I am 60 my husband is 64, we have been married 5 years and both have children from previous marriages. I would like to gift my children some cash 5 years before I retire.
How will this impact my husband’s Centrelink claim in 3 years time (our plan is to pay down the mortgage and have total assets the single person limit (excluding my super balance)
Hi Fiona, great to hear you are trying to plan ahead! When your husband applies for the pension, he will be assessed under the couple’s thresholds/pension rate because it is based on his relationship status, not whether you are both applying vs only one. Therefore if you were to gift money now, in three years time your husband will need to declare it to Centrelink however it will only impact his Age Pension for 2 years.
As you are trying to plan ahead Fiona, you may benefit from having a Retirement Advice Consultation with our financial adviser. They may be able to help you better understand your needs and goals in retirement and some of the actions you can consider to help you achieve those goals. The consultation can be either online or via phone call, goes for up to 45 minutes and costs $150.
CLICK HERE to book now.
I am 61, and going to sell an investment property with the balance of $400,000. Can I give $400,000 to my son as gift and have no impact on the Pension when I turn 67?
Hi Vin, thanks for getting involved in the conversation. This is very much in line with Sam’s scenario from our article. Yes if you gift an amount 5 years or more prior to applying for the Age Pension then there is no impact to your pension.
I first discovered the gifting limits (re my parents) in 2011. In 2022 the amount has not been increased even though the actual value of the amount has diminished considerably. Where is the advocacy for an increase, eg by the CPI per annum for the last 11 years.
Can both people in a marriage gift $10k per year without affecting the pension? Also, if you are already below the assets and income limits does this mean your pension won’t be affected if you exceed the gifting limits?
Hi Gary, thanks for reaching out! Unfortunately the gifting limits for couples apply to both of you combined, not per person. if you are under the minimum thresholds then you are correct that there is no change to your full pension from gifting.
How is it assessed if the mother contributes to the costs of renovating a house in order for her to live in it with her daughter?
Hi Becky, we actually already had this scenario raised in the comments by Gerry but please note the following. In general this scenario would not be counted as gifting because in exchange for the money, the mother is receiving the right to live in the house. Gifting is when you give away an asset for either nothing or less than it’s market value. Centrelink refer to these scenarios as Granny Flat Interest and you can read more about it HERE.