Social security means testing rules

Home > Financial Focus

Gifting rules for social security means testing allow gifts of $10,000 per financial year and a maximum amount of $30,000 over a rolling five financial year period – amounts that exceed these limits are treated as “deprived assets”.

Deprived assets are counted as a person’s asset and subject to deeming under the Income Test for five years from the date of the gift. You cannot ‘bring forward’ the annual limits and access the $30,000 limit in one year. Where a person gifts $30,000 in one year, $20,000 is held as a deprived asset for five years.

However, amounts held as a deprived asset does not count towards a person’s annual gifting limit in the following year or their rolling five-year limit of $30,000. This means you could gift up to $10,000 in the second year and another $10,000 in the third year without increasing the amount held as a deprived asset.

These limits apply to both singles and couples combined meaning couples do not have the benefit of accessing two times these limits.

Testimonials

"Securing your financial future is an important decision in everyone’s life and we wouldn’t entrust it with anyone else.  Whether you are a passive or active investor, Momentum provides experienced,..."

Matt & Kirsty, Gold Coast
See More Testimonials

Meet the Team at Momentum

David Gourley

Director / Financial Planner
Team Profiles

Newbrocom Pty Ltd (ABN 39 152 026 330) trading as Momentum Financial Planning is an authorised representative of Charter Financial Planning Limited, Australian Financial Services Licensee Licence number 234665.

 

DISCLAIMER | PRIVACY POLICY | FINANCIAL SERVICES GUIDE
TERMS & CONDITIONS

Momentum Financial Planning is one of a select number of businesses that has been awarded Certified Quality Advice Practice status by Charter Financial Planning. This programme sets an industry benchmark for providing high-quality financial advice. The certification is awarded based on industry qualifications, demonstrated best practise business operations and proven success in meeting the financial planning needs of clients.

© Momentum Financial Planning 2010 - 2018 All Rights Reserved :: Website by Giant Media :: ADMIN