Cash assets gifted

An applicable person is not able to directly or indirectly deprive themselves of any income.

You can generally allow a client to gift small amounts of money to others. However, large sums of money gifted by a client should be treated as an assessable asset for Income Related Rent purposes.

There may be circumstances where any amount gifted (whether large or small) can be considered as an assessable asset.

Generally, if an applicable person has gifted any sum of money in the last year over the asset thresholds, then the amount is treated as an assessable asset.

As a guideline, you should annually reduce the value of the gift by $1000 for a single client or couple without children and $2000 for a sole parent or a couple with one or more dependent children.

Example

A gift of $4000 was gifted by a single person. The next year this becomes $3000, then $2000 the following year and is then disregarded as an assessable asset from the third year as it is below the exemption level.