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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.
Do the loan and gift rules apply if you are not on the pension?
Hi John, thank you for your query! If you are not receiving an Age Pension then there are no immediate impacts from lending/gifting money however you should note that as the gifting rules apply for 5 years from the day you made the gift, Centrelink do expect you to declare any gifts given in the previous 5 years so they can factor it in to their calculations. Any loans owed to you on the day you lodge a claim need to be declared and will be assessed as assets based on the amount(s) outstanding.
Going guarantor for a grandchild considered a loan, no money is actually paid out.
Hi Nancey, thank you for getting in on the conversation! You are right that going as a guarantor does not count as a loan as you are not giving any money to anyone.