Gifting is when you or your partner give away assets or transfer them for less than their market value. You are able to gift assets or money to someone else to help them financially. However, there are rules that apply to limit how much you’re able to gift, without impacting your assessment for Centrelink entitlements, and aged care fees.

How it works

You can only gift within certain limits, without triggering the ‘deprivation rules’ for the purpose of your Centrelink entitlements. The maximum amount of assets you can give away within the limit is:

  • $10,000 each financial year; but no more than
  • $30,000 over a rolling five-year period.

These figures also represent the total combined amount that a couple can give away before the deprivation rules are triggered. The rolling five-year period is the current financial year plus the previous four financial years.

If you transfer ownership of assets between yourself and your spouse gifting rules do not apply as your assessment includes the combined total assets.

Gifting more than the allowable limit – Deprived Assets

If you gift more than the allowable limit, the excess is assessed by Centrelink as a ‘deprived asset’.

A deprived asset will continue to count under the assets test and be deemed for income test purposes for five years from the date of the gift. When you first apply for a Centrelink payment, any gifts made in the previous five years are also considered and excess amounts will be captured as a deprived asset.


  • You will be able to provide financial assistance to family members.
  • Your Centrelink entitlement may increase because the gift reduces your assessable income and assets (as long as it is within the allowable limits).
  • The daily fees for aged care services may decrease due to the reduced assessable income and assets.

Risks, consequences, and other important things to consider

  • Gifting assets reduces your savings. It is important to ensure you continue to have sufficient savings available for ongoing needs.
  • If you exceed the allowable limit you will have a deprived asset which will be assessed against you for five years from the date of the excess gift.
  • If a gift is repaid, any deprived asset that was created will be eliminated.
  • You are required to notify Centrelink/DVA within 14 days about any change in your circumstances that may affect your entitlement.



This publication has been prepared by an Authorised Representative of Apogee Financial Planning Limited ABN 28 056 426 932 AFSL 230689, 105-153 Miller Street North Sydney NSW 2060. Any advice in this publication is of a general nature only and has not been tailored to your personal circumstances. Accordingly, reliance should not be placed on the information contained in this document as the basis for making any financial investment, insurance or other decision. Please seek personal advice prior to acting on this information.

Information in this publication is accurate as at the date of writing (September 2020). In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, the accuracy of that information is not guaranteed in any way.

Opinions constitute our judgement at the time of issue and are subject to change. Neither the Licensee nor any member of the NAB Group, nor their employees or directors give any warranty of accuracy, not accept any responsibility for errors or omissions in this document.





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