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?
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Thanks for your question and I'm more than happy to assist. We often find that many people don't think about the potential implications on Centrelink benefits before encountering significant changes to their financial situation, so it is great you are being proactive. Particularly when government benefits are concerned, any changes to assets and/or income can have a flow-on effect to how much you may be entitled to receive, so it is important to check the facts and get the right advice before you dive in "feet first".
Generally speaking, childcare rebates are only assessed based on family income, and asset tests do not currently apply. As such, receiving a cash gift does not impact eligibility, but it is important to consider what you do with the money after you receive it. Assuming you were to invest the funds, the income generated needs to be reported to Centrelink, and may impact future entitlements.
When in doubt, it is always best to refer to the Centrelink website or call them directly - the best time is generally first thing in the morning to avoid long wait times. This way, you can advise them of your potential change in circumstances and speak to them about the potential impacts due to changes in your situation.
As with anything in life, it is about setting the destination, working out where you are now, and crafting the road map to get you there. As an additional value-add, I am happy to send you a copy of my best selling book "Enjoy The Journey" that will hopefully help you navigate what you do (once you receive the gift) and give you some tips to guide you in pursuit of your goals. Feel free to shoot me an email and I will post it out to you.
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