The limits

  • $10,000 in one financial year.
  • $30,000 over five financial years, with no more than $10,000 of that in any single year.
  • The limits are the same for a single person and for a couple combined.

What happens if you give more

The amount above the limits is treated as a "deprived asset". For five years from the date of the gift, it is counted under the assets test and deemed to earn income under the income test, even though you no longer have it. If the gift is returned to you, the deprived amount stops being assessed.

What counts as a gift

A gift is selling or transferring an asset or income for less than it is worth, or for nothing. Spending money on normal costs, such as a holiday, a new fridge or home improvements, is not a gift. Selling an asset at full value is not a gift either.

A worked example

A couple on a part Age Pension gives their daughter $25,000 towards a house deposit in one financial year. $10,000 is within the yearly limit. The other $15,000 is a deprived asset: it is counted as a financial asset, and deemed at current deeming rates, for five years.

Planning a larger gift? Timing it across financial years, or making it before you claim the pension, can change the result. Estimate the effect with our Age Pension calculator or see Age Pension advice in Brisbane.

Quick answers

How much can I gift without affecting the Age Pension?

$10,000 in a financial year and $30,000 over five financial years, for singles and couples alike.

How long does an excess gift count against my pension?

Five years from the date of the gift.

Is paying for home repairs a gift?

No. Spending on normal costs such as home improvements, holidays or household goods is not gifting.

Sources

General advice warning. This article is general information only and does not take into account your objectives, financial situation or needs. Rules, rates and thresholds change; check the sources above. Consider the relevant PDS and our Financial Services Guide and seek personal advice before acting. FinForce is a Corporate Authorised Representative (No. 001241242) of Financial Force Pty Ltd, ABN 42 091 425 464, AFSL 238337.

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