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Patrick H.
Patrick H., Lawyer
Category: Australia Law
Satisfied Customers: 5358
Experience:  Dip Law LPAB - Sydney based lawyer
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I am a Pensioner and inherited a house when my mother passed

Customer Question

I am a Pensioner and inherited a house when my mother passed on. I have since sold it and gifted 100K to my ex-wife.How will Centrelink treat this issue and will my Pension be penalised?Thank you.
JA: Because real estate law varies from place to place, can you tell me what state this is in?
Customer: The house was in Victoria and I live in QLD
JA: Has anything been filed or reported?
Customer: yes, but different officers at Centrelink tell me different things
JA: Anything else you want the lawyer to know before I connect you?
Customer: No thanks
Submitted: 3 months ago.
Category: Australia Law
Expert:  Patrick H. replied 3 months ago.

Hello and thank you for your question.

The issue for pensioners and centrelink is that your pension is subject to an asset test, and you cannot defeat the asset test by gifting away your assets. This means that where a pensioner gives away assessible assets, whether cash or real estate, centrelink will treat such gifted assets as still being held by the pensioner for the purposes of the asset test, and in some case this can therefore cause the pension to be adversely affected if the gift amount changes the outcome of the asset assessment.

To find out exactly how much your pension may be affected you will need to discuss your pension with Centrelink (now called the Department of Human Services) directly:

The following link and contact details should assist.

https://www.humanservices.gov.au/customer/enablers/assets-test-age-pension

Good luck and please rate my answer.

Patrick