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They make you jump through the hoops and make sure you are still eligible. I suppose it is the Governments way of weeding out the apathetic.

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On 10/20/2018 at 11:51 AM, NSWP said:

 We don't have to worry about that process, even though both 70, Centrelink gives us nowt as I am a self funded retiree, the asset test and income stream means test got me.  😡The boss gets nowt either because she lives with me, if I kicked her out she would get ye old aged pension.  Don't get me started on Centrelink entitlements.😡

 

Aren't all your cruises starting to reduce you nest egg down to a level where you get some pension. If not, you need to try harder old son 🙂

 

Centrelink entitlements are a minefield. Read the other day, that a pensioner received a substantial inheritance. She donated it to charity and was hit with loss of pension as you can't gift the money away. But she could have gambled it away, drank it away, bought a bigger house, partied like there was no tomorrow or went on a world cruise without impacting her entitlements.

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15 minutes ago, mr walker said:

 

Aren't all your cruises starting to reduce you nest egg down to a level where you get some pension. If not, you need to try harder old son 🙂

 

Centrelink entitlements are a minefield. Read the other day, that a pensioner received a substantial inheritance. She donated it to charity and was hit with loss of pension as you can't gift the money away. But she could have gambled it away, drank it away, bought a bigger house, partied like there was no tomorrow or went on a world cruise without impacting her entitlements.

Yep, beware of gifting to maximise pension, they will get you in the end.

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23 minutes ago, mr walker said:

 

Aren't all your cruises starting to reduce you nest egg down to a level where you get some pension. If not, you need to try harder old son 🙂

 

Centrelink entitlements are a minefield. Read the other day, that a pensioner received a substantial inheritance. She donated it to charity and was hit with loss of pension as you can't gift the money away. But she could have gambled it away, drank it away, bought a bigger house, partied like there was no tomorrow or went on a world cruise without impacting her entitlements.

You can give it away to anyone you like, but Centrelink deems that you still have it for ten years.

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29 minutes ago, MicCanberra said:

Yep, beware of gifting to maximise pension, they will get you in the end.

 

22 minutes ago, Aus Traveller said:

You can give it away to anyone you like, but Centrelink deems that you still have it for ten years.

Mum decided that she didn't want the family to have the burden of her funeral (when the time comes) so she transferred $10K into my bank account for that purpose. She had to explain the gift to Centrelink - surprised I didn't have to sign a stat dec or similar - guess they will track me down after the funeral and make sure I paid the $10K for the event.

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22 minutes ago, mr walker said:

 

Mum decided that she didn't want the family to have the burden of her funeral (when the time comes) so she transferred $10K into my bank account for that purpose. She had to explain the gift to Centrelink - surprised I didn't have to sign a stat dec or similar - guess they will track me down after the funeral and make sure I paid the $10K for the event.

The money your mother transferred to you would be regarded as a gift. You can with it what you like, but for the next ten years, Centrelink will include this amount in your mother's assets when they assess what pension she is eligible for.

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54 minutes ago, Aus Traveller said:

The money your mother transferred to you would be regarded as a gift. You can with it what you like, but for the next ten years, Centrelink will include this amount in your mother's assets when they assess what pension she is eligible for.

Not quite correct as it depends on the amounts of the gift and the periods of time for the gifts.

https://www.humanservices.gov.au/individuals/topics/gifting/27276#a1

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3 hours ago, MicCanberra said:

Not quite correct as it depends on the amounts of the gift and the periods of time for the gifts.

https://www.humanservices.gov.au/individuals/topics/gifting/27276#a1

Looking at the website you reference, I see that Centrelink now assess a gifted amount of money as part of the person's assets for five years. I know that is how it was in the 1990s, but I thought that was extended to ten years.

 

The website says that people can give away any amount of money ....   but elsewhere on the website it refers to a limit of $10,000 per year. I am puzzled at what appears to me to be an inconsistency.

 

(quote)

How gifting can affect your payment

You or your partner can choose to give away any amount of money, assets or income at any time. But before you do, make sure you know what effect it may have on your financial security.

We assess your gifts to see:

  • how they reduce your assets
  • if they go over the allowable amounts for gifting

Any gifts you made in the past 5 years may count in your assets and income tests.

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You can give away as much as you want but if you do not want your pension affected, then there are limits.

Allowable gifting amount

This is the most you can gift without affecting your payments from us. Another term for it is gifting free amount.

The amount for a single person or a couple’s combined gifting amount is:

  • $10,000 in 1 financial year
  • $30,000 in 5 financial years - this can’t include more than $10,000 in any year

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And I you’re really desperate to give some away, give me a yell, I’ll be glad to help you out

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2 minutes ago, GUT2407 said:

And I you’re really desperate to give some away, give me a yell, I’ll be glad to help you out

get in line buddy.

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1 hour ago, MicCanberra said:

You can give away as much as you want but if you do not want your pension affected, then there are limits.

Allowable gifting amount

This is the most you can gift without affecting your payments from us. Another term for it is gifting free amount.

The amount for a single person or a couple’s combined gifting amount is:

  • $10,000 in 1 financial year
  • $30,000 in 5 financial years - this can’t include more than $10,000 in any year

Sneaky. The government website says "you can give away as much as you want" but limit it to $10,000 a year otherwise there will be a penalty, presumably a reduction of pension payment. And, of course, they still count that $10,000 as part of the person's assets for five years.

 

BTW, this will never affect me because I do not (and never will) receive Centrelink payments.

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I don't see it as sneaky. As for having a rule to limit people giving away their money to the detriment of the tax payer, I am all for that.

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perhaps Mum misunderstood what they told her when she was advising Centrelink of that payment to me? In any case I have the 'funeral money' & it will be spent as intended. As Mum has just relocated & she will be in a further cash positive situation after settlement of both properties, I see some work with Centrelink coming up :classic_ohmy:  I'm already not happy with them trying to give her financial advice, which did not make sense & is not their role.

 

Now just need to convince her of another cruise now she is here in Sydney and it will be easier. She has done two cruises, the 1st for her 80th birthday (& Mic & Rosie were onboard 🙂 )

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33 minutes ago, mr walker said:

perhaps Mum misunderstood what they told her when she was advising Centrelink of that payment to me? In any case I have the 'funeral money' & it will be spent as intended. As Mum has just relocated & she will be in a further cash positive situation after settlement of both properties, I see some work with Centrelink coming up :classic_ohmy:  I'm already not happy with them trying to give her financial advice, which did not make sense & is not their role.

 

Now just need to convince her of another cruise now she is here in Sydney and it will be easier. She has done two cruises, the 1st for her 80th birthday (& Mic & Rosie were onboard 🙂 )

It's likely your Mum told Centrelink what the payment to you was for, but I don't think they care. It would still be a gift and totally within the rules.

 

Having negotiated the Centrelink 'minefield' with countless mistakes and mis-information for both my parents and my Mum-in-law, I am so glad we don't have to deal with them. One section of Centrelink that we found to be fantastic is the Financial Information Services section. They gave excellent advice on ways for the client to maximise their pension entitlement. This is a free service that will look at an individual client's financial situation and give advice that benefits the client.

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53 minutes ago, mr walker said:

Now just need to convince her of another cruise now she is here in Sydney and it will be easier. She has done two cruises, the 1st for her 80th birthday (& Mic & Rosie were onboard 🙂 )

I remember,

BTW, if she is buying OBC for fellow passengers, then I am not sure how that would be considered by Centrelink.

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54 minutes ago, mr walker said:

perhaps Mum misunderstood what they told her when she was advising Centrelink of that payment to me? In any case I have the 'funeral money' & it will be spent as intended. As Mum has just relocated & she will be in a further cash positive situation after settlement of both properties, I see some work with Centrelink coming up :classic_ohmy:  I'm already not happy with them trying to give her financial advice, which did not make sense & is not their role.

Your mum can buy a funeral bond (prepaid funeral costs) then that is not considered either a gift or an asset that would affect the Pension.

16 minutes ago, Aus Traveller said:

It's likely your Mum told Centrelink what the payment to you was for, but I don't think they care. It would still be a gift and totally within the rules.

 

Having negotiated the Centrelink 'minefield' with countless mistakes and mis-information for both my parents and my Mum-in-law, I am so glad we don't have to deal with them. One section of Centrelink that we found to be fantastic is the Financial Information Services section. They gave excellent advice on ways for the client to maximise their pension entitlement. This is a free service that will look at an individual client's financial situation and give advice that benefits the client.

The Financial Information services provide information on how income and assets may be affected in various scenarios but they do not offer any advice. It is so people can make an informed decision.

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4 hours ago, MicCanberra said:

The Financial Information services provide information on how income and assets may be affected in various scenarios but they do not offer any advice. It is so people can make an informed decision.

We found the advice from the Financial Information Services of Centrelink very helpful. I was able to advise my parents on a course of action that worked out to be financially beneficial.

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