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You can choose to give away any amount and as many gifts as you like. If the total value of your gifts is more than the value of the gifting free area, your payment may be affected.
If you gift over the value of the gifting free areas we’ll do both of these:
- count the excess in your assets test
- apply deeming and include it in your income test.
This applies for 5 years from the date you make the gift.
This may change if you get the gift back.
Gifting free areas
The value of the gifting free areas are the same if you’re a single person or a couple. They are both:
- $10,000 in one financial year
- $30,000 over 5 financial years - this can’t include more than $10,000 in a single financial year.
Example - several gifts within 5 years
| Date | Gift | Amount that is within the annual gifting free area | Amounts within last 5 year’s annual gifting free areas | Amount maintained as a financial asset |
|---|---|---|---|---|
| 1 May 2019 | $8,000 | $8,000 (less than $10,000) |
$8,000 | $0 |
| 1 June 2020 | $13,000 | $10,000 (maximum) |
$18,000 | $3,000 until 31 May 2025 ($13,000 - $10,000) |
| 1 April 2021 | $7,000 | $7,000 (less than $10,000) |
$25,000 | $0 |
| 1 May 2022 | $11,000 | $10,000 (maximum) |
$35,000 | $6,000 until 30 April 2027 (($11,000 -$10,000) + ($35,000 - $30,000)) |