How gifting can impact your Age Pension

A towel with your name on it. Money sandwiched between a card and a scratchy. Chocolates, socks, and more. What do these all have in common? ​

Did you guess right? These are classic gifts to receive from grandparents! 
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While an embroidered towel might not push the gift limits for the age pension, it’s important to remember what does.  

According to Services Australia, a gift is anything that: 

• “You sell or transfer as an income or asset 

• You get less than its value or nothing in return” 

Note: It’s not classed as a gift if you receive an item or service of equal value back. 
 
Gifting limits 
If you are on the Age Pension you can gift up to $10,000 in one financial year, or $30,000 over five financial years.  

You can learn more about specific limits here.  
 
How this affects your pension 
You can give away any amount you’d like, but payments that reduce your assets or go over the gifting free areas may reduce your pension payment.  
 
What gifts are included 
While Christmas cards stuffed with $10 notes aren't likely to exceed any limits, it’s important to be mindful of what gifts will be included in the ATOs assessment.  

Some common gifts that can be assessed include: 

• Cash (if it exceeds the gifting limits) 

• Buying or transferring a car to another person 

• Transferring money to a trust or company  

• Forgiving loans 

• Paying off someone else's loan 

• Donating money  

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You can learn more here.  
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We encourage you to contact Services Australia prior to gifting large amounts if you believe you may go over the cap.  ​