Excess gifting within the 5-year gifting period
The 5-year period immediately before the Residential Care Subsidy application is called the 'gifting period'
A client and their partner (living or deceased) may gift up to a certain amount of assets or income per year, per application, without it affecting their financial means assessment.
When a client or their partner gifts more than the allowable gifting amount in any year within the 5-year gifting period, the excess gifting is offset in the following years of the gifting period providing they gift less than the allowable gifting amount in any of those years.
Current allowable gifting amount
The allowable gifting amount within the 5 year gifting period is $8,500 per year from 1 July 2026.
For more information on the allowable gifting amounts that applied before 1 July 2026, see:
Example
Financial means assessment date: 10 July 2026 | ||||
From Year: | To Year: | Gifted | Allowed gifts | Excess gifts |
10-July-2021 | Year 1 09-July-2022 | Nil | Nil | |
10-July-2022 | Year 2 09-July-2023 | $3,000* | $3,000 | |
10-July-2023 | Year 3 09-July-2024 | $25,000** | $8,500 | |
10-July-2024 | Year 4 09-July-2025 | $300,000*** | $8,500 | |
10-July-2025 | Year 5 09-July-2026 | Nil | $8,500 | |
Total | $328,000 | $28,500 | $299,500 | |
Excess gifts of $299,500 would be included in the financial means assessment of assets.
* Gift to grandchild
** Gift to daughter
*** Gifted home to trust
For more information see:
Legislation
- assets (definition) clause 4 schedule 2, Residential Care and Disability Support Services Act 2018
- Gifting period regulation 9 Residential Care and Disability Support Services Regulations 2018
- Allowable gifts regulation 10 Residential Care and Disability Support Services Regulations 2018
- Gift in recognition of care regulation 11 Residential Care and Disability Support Services Regulations 2018
