Couples go under the radar when it comes to gifting rules
It means they won’t face age pension cuts when moving super to the other’s account to maximise opportunities.
Q: In answer to a recent question, you suggest it is possible to improve an age pension entitlement by moving some of your super into the accumulation account of a younger spouse below pension age. But this ignores the fact Centrelink will treat the moved super as “gifting” and as a “deprived asset” for up to five years after it is moved, regardless of it staying within superannuation. While I’d prefer to be mistaken on this, I have checked Centrelink’s information and found no source that shows it is not “gifting”. While the suggestion might help a couple whose ages are more than five years apart, others following the suggestion could run foul of Centrelink without knowing this drawback. David
A: Reader feedback to answers in this column provided by experts is always welcome as it provides an opportunity to either expand or clarify issues raised in responses. Your feedback highlights two important aspects of the age pension gifting rules when someone on the pension makes a gift of money or assets they own.
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