My father wants to gift my brother and myself an equal A$250,000. Will this have any impact on our declared Centrelink income (currently $130,000 combined family income) and the childcare rebate and childcare benefit?
Anne in Vic
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So there’s a few considerations here, but luckily the answer you’re searching for is quite simple.
Gifts are not deemed as income. So if your rather generous father choses to gift you $125,000 then it won’t change the amount of income you’ve declared with Centrelink. There are a few considerations to be careful of though however, not necessarily for you now, but for you in the future.
The amount given to you, depending on what your intentions are with it, may produce income in the future if it’s invested shares, managed funds or term deposits etc., those earnings will be deemed as income and will increase the amount you must declare to Centrelink. Depending on what you do with it there may be buy sell fees, transactional or potentially Capital Gains Tax on any assets / investments you purchase with the funds given to you.
We may also need to have a chat with your Father, given the amount he’s aiming to gift to you and your brother he may have Centrelink implications on any entitlements he may currently be receiving? Happy to chat further to run some scenarios past you.
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