05.Tips for grandparents
“Grandparents may get caught out by gifting rules when they give money for their grandkids education and don’t check with Centrelink first”, says Craig Hall from the National Information Centre on Retirement Investments (NICRI). You are only allowed to gift up to $10,000 per financial year but not exceed $30,000 over a 5 year period. Any amounts in excess of above this will be counted as though you still own those assets for 5 years.
If you hold funds in trust for your grandchildren you will be ‘trustees’ and therefore responsible for the funds. This also means that these funds will continue to be assessed for your age pension under the assets and income test.
- If you are on a part pension due to your assets, every extra $1,000 assessed will reduce the pension by $1.50 per fortnight.
- If you are on a part pension due to your income, every extra dollar counted will reduce the pension by 50 cents per fortnight.
For more information contact Centrelink’s Financial Information Service on phone 13 23 00 or contact NICRI on phone 1800 020 110.