Gifts

A once only gift of cash is a capital payment and is not chargeable income for benefit purposes. This includes a once only gift of real estate or personal property.

When a client gets goods or services, or gifts of cash periodically the value of these should be charged as income.

MSD must charge the value of the gift as income for the period it relates to.

If the gift does not relate to a specific period or if MSD cannot determine the actual period it relates to, MSD must determine the most appropriate period to charge the income. This may be the week in which it is received, provided or supplied.

Example - gift relates to a period

Sarah's mother pays her $250 per week towards general living expenses in respect of that week.

In this situation MSD charge the $250 as income against the week the payment relates to.

Example - gift is intended to be used for specific purpose in period

Cas' friend periodically sends them money to assist with various living expenses. On 1 June Cas is given $90, which is intended to be used towards their groceries in that week.

In this situation MSD charge the $90 as income for the week it is received.

Example - gift does not relate to a period and is intended to be used as and when needed

Jase's uncle sporadically sends him money of varying amounts, intended to be used however and whenever Jase chooses.

In this situation MSD charges the payments as income for the week it is received as it does not relate to any period.

Note any income received from the investment of a cash gift is chargeable income.

Funds retained from a cash gift may affect entitlement to extra help such as Accommodation Supplement, Temporary Additional Support or Special Benefit.