Cash assets gifted

A client is not able to directly or indirectly deprive themselves of any income or assets so that they can qualify for Accommodation Supplement.

If a client has gifted small amounts of money to others, it may be disregarded as a cash asset. However, large sums of money gifted by a client should be treated as a cash asset for Accommodation Supplement purposes.

There may be circumstances where any amount gifted (large or small) can be considered as a cash asset.

When a client applies for Accommodation Supplement or has a Mandatory Review, any money they have gifted in the last year may be treated as a cash asset if the client has gifted an amount over: 

• $2,700 for a single client or
• $5,400 for a married, civil union or de facto couple or sole parent

The amount is treated as a cash asset for 52 weeks after the client applied Accommodation Supplement, or from when the client responded to their Mandatory Review.

The value of the cash asset should be reduced at each subsequent Mandatory Review.

For a review over a 26 week period:

• reduce the value of the cash asset by $500 for a single client
• reduce the value of the cash asset by $1,000 for a client who is a sole parent, or who is married, in a civil union or de facto relationship

For a review over a 52 week period:

• reduce the value of the cash asset by $1,000 for a single client
• reduce the value of the cash asset by $2,000 for a client who is a sole parent, or who is married, in a civil union or de facto relationship

A gift of $4,000 was gifted by a single client. At the first Mandatory Review this becomes $3,000.

At the next Mandatory Review, 52 weeks later, the value of the gift becomes $2,000.

As long as the client has no other cash assets then this should be disregarded because the cash asset is now below the exemption level.