Exempt Gifts and Allowances
We have previously described the importance of correctly declaring a gift and we have described a situation where a child was “given” money to provide lifetime living costs. Originally quoted to Centrelink as a ‘gift’. Then the ‘asset’ was continued to be assessed by Centrelink under both the assets and income tests; whereas it should have been declared as provision for lifetime living costs and therefore exempt.
Now – say - if a child was regularly providing you with money to help you live? This equally may not be defined as a gift and therefore not be treated as income. Centrelink report:
“Examples of exempt income include:
….
a periodic payment from an immediate relative, that is father, mother, son, daughter, brother or sister. Note: this applies only if you are receiving a pension”.
References:
For more information on gifts refer the link below:
http://www.humanservices.gov.au/customer/enablers/assets#a7
For information on ‘granny flats’ and lifetime rights.
http://www.humanservices.gov.au/customer/enablers/granny-flats#a2
For more information on gifts and exempt income refer the link below:
