Should we give away some super so we qualify for the age pension? |
Should we give away some super so we qualify for the age pension?
October 21, 2026 — 4:01am
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We keep hearing about the advantages of qualifying for even a small part-age pension. Apart from the fortnightly payment, what are the benefits, and why is it considered so important? Our combined superannuation balances put us above the assets test limit, and we’re wondering whether we should give some money to our children to bring ourselves below the threshold.
Even a small part-age pension can be valuable because it generally comes with a Pensioner Concession Card, which provides access to cheaper PBS medicines, bulk-billed medical appointments where available, and various state government concessions on expenses such as electricity, council rates, water and transport.
Depending on where you live, these savings can be substantial. There may also be advantages under the proposed capital gains tax changes from July 2027, which include an exemption from the minimum 30 per cent tax for people receiving the age pension in the year of sale.
However, don’t rush into giving money away to qualify. Centrelink’s gifting rules allow a couple to give away $10,000 in a financial year, subject to a maximum of $30,000 over five financial years, without affecting their pension assessment.
Amounts above those limits continue to count as assets for five years and are subject to deeming. You could therefore give away a substantial sum and still find yourselves ineligible for a pension.
Will inheriting my mum’s CBA shares trigger a big capital gains tax?
Paul BensonMoney contributor
Before making any gifts, check exactly how far you are above the assets test........