This simply refers to money or an item given to another person without expectation of receiving anything in return. It’s advisable to always be clear whether financial or other exchanges with family members are a gift or loan and to document the terms of the exchange.

Centrelink has strict rules in place to ensure that people do not dispose of their assets by gifting them to family members or others in an effort to influence their eligibility for the age pension or aged care costs. A person can give away up to $30,000 over a 5-year period before it will affect their assets test. Older people should be aware that it is considered a gift if you sell or transfer an income or asset and get less in return than it was worth.