The gift that keeps giving
Those retirees who have not gifted this pension year should consider giving a hand out quickly if they want to benefit before changes in social security gifting rules, announced in the budget, come into ef-fect.
From July 1, 1999, the amount they can give each year without at-tracting the deprivation provisions falls from $10,000 to $5,000.
In addition, the concept of pension year - which is the anniversary of each pensioner's grant of payment - will be abolished and will be replaced with the
Those retirees who have not gifted this pension year should consider giving a hand out quickly if they want to benefit before changes in social security gifting rules, announced in the budget, come into ef-fect.
From July 1, 1999, the amount they can give each year without at-tracting the deprivation provisions falls from $10,000 to $5,000.
In addition, the concept of pension year - which is the anniversary of each pensioner's grant of payment - will be abolished and will be replaced with the more commonly understood financial year.
The changes are viewed as a move to prevent pensioners from divesting themselves of their assets ahead of the asset test which is done to assess the level of aged pension.
Westpac Financial Services technical services manager Nick Ingram says there is a gap for those who have the end of their pension year coming up soon. They could gift $10,000 now. They could then give an-other $10,000 before July 1 and a further $5,000 in the next tax year.
"That means they will be able to give away $25,000 in a short space of time," he says.
The changes in the gifting rules, however, are not expected to have a large impact on charities.
Givewell principal Michael Walsh says people on pensions are more in-clined to gift to family members and they do not tend to give large amounts to charity. Gifting for them is often an estate planning pro-cesses, he says.
Ends
Recommended for you
Licensing regulation should prioritise consumer outcomes over institutional convenience, according to Assured Support, and the compliance firm has suggested an alternative framework to the “licensed and self-licensed” model.
The chair of the Platinum Capital listed investment company admits the vehicle “is at a crossroads” in its 31-year history, with both L1 Capital and Wilson Asset Management bidding to take over its investment management.
AMP has settled on two court proceedings: one class action which affected superannuation members and a second regarding insurer policies.
With a large group of advisers expecting to exit before the 2026 education deadline, an industry expert shares how these practices can best prepare themselves for sale to compete in a “buyer’s market”.
