Many Australians over 60 reach a point where helping the next generation feels more important than holding onto every dollar. Whether it’s giving a child a head start in the property market, helping grandkids with education, or passing down part of your super, gifting can be incredibly meaningful.
But it’s not always simple – and sometimes well-intended gifts can have financial consequences you didn’t expect. Before you transfer anything major, it’s important to understand the rules, the risks, and the conversations that make the process smoother for everyone involved.
Why people choose to gift
For many families, gifting is about seeing the impact now, not after you’re gone. It can help your children avoid mortgage stress, support young families with rising costs, or give grandchildren a strong start.
Gifting can also be part of estate planning – reducing the size of your estate to avoid disputes later, or simply giving while you’re still fit, healthy, and able to enjoy the moment.
But while generosity is beautiful, it pays to be strategic.
What counts as “gifting”
In the eyes of Centrelink, a “gift” is anything you give away for less than its market value. This includes:
- Cash
- Property
- Vehicles
- Shares or investments
- Superannuation (under certain conditions)
- Forgiving loans
- Selling an asset to a family member for a symbolic price
And here’s where the rules matter.
Centrelink rules you should know
1. The $10,000/$30,000 rule
You can gift up to $10,000 per financial year, and no more than $30,000 over a rolling five-year period, without affecting your Age Pension.
Go over that, and the excess is counted as an asset you still have, even though you gave it away. This can reduce your pension for up to five years.
2. Property gifts are almost always “deprived assets”
If you transfer a house or investment property to a child – even if you receive a token payment – Centrelink will usually treat the full market value as still belonging to you for five years.
This can significantly impact pension eligibility.
3. You can’t directly gift super to someone
Superannuation can only be withdrawn by someone who has met a condition of release. Once withdrawn, you can gift the money, but it then becomes subject to the usual gifting rules.
The emotional & legal risks
Gifting can create unexpected complications:
- Family disputes if one child is helped more than another
- Relationship breakdowns: gifts may be lost in divorce settlements
- Loss of control: once an asset is gone, you can’t take it back
- Aged care fees: gifting can affect means-tested assessments
This is why legal advice – and very clear communication – is essential.
Having the hard conversations
Before gifting anything major, ask yourself:
- What do I need for my own security and comfort?
- Is this gift fair to all children?
- Does this expose them (or me) to financial or relationship risks?
- Have I documented this properly?
- Do they even want the responsibility of a large asset right now?
Families who talk early and openly tend to avoid misunderstandings later.
The bottom line
Gifting can be one of the most generous decisions you’ll ever make – but it deserves careful planning. Knowing the rules around Centrelink, super and property can help protect your retirement while still giving your loved ones the support they need.
Before making big decisions, speak with a financial adviser, your super fund, and – most importantly – your family. The right plan ensures your generosity builds a legacy, not a headache.
Images: Pexels
