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The aged care assets test - Gifted assets and Income Streams

Information about the treatment of Gifted assets and Income Streams under the pension assets test.

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Gifted assets

Any amount of assets given away over $10,000 in a single financial year, or $30,000 in a five-financial year period, will be included in the aged care assets assessment. Note that gifts made from 10 May 2006 are assessable.

The treatment of gifts under the pension assets test, in respect of a person receiving a service pension or an income support supplement through the Department of Veterans’ Affairs (DVA), is set out under Subdivisions B and BB of Division 11 of Part IIIB of the Veterans’ Entitlements Act 1986.

The treatment of gifts under the pension assets test, for all applicants other than those receiving a service pension or an income support supplement through DVA, is set out under Division 2 – Disposal of assets, under Part 3.12 of the Social Security Act 1991.

Income streams

The full amount of the purchase price for any income stream purchased on or after 20 September 2007 will be included in the aged care assets assessment.

Income streams purchased before 20 September 2007 are exempt under the aged care assets test (where a lump sum amount can not be withdrawn, the assessment will be in the same way as they are for social security purposes).

The treatment of income streams under the pension assets test, in respect of a person receiving a service pension or an income support supplement through the Department of Veterans’ Affairs (DVA), is set out under Subdivisions A of Division 11 of Part IIIB of the Veterans’ Entitlements Act 1986.

The treatment of income streams under the pension assets test, for all applicants other than those receiving a service pension or an income support supplement through DVA, is set out under Division 2 – Value of person’s assets, under Part 3.12 of the Social Security Act 1991.

For information about the treatment of gifts and income streams under the pension assets test you may wish to call:

Centrelink on 13 23 00

or

Department of Veterans’ Affairs on 13 32 54

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