Gifting a home to children or other family members may seem generous, but it can have unexpected consequences. Many pensioners are surprised to find that giving away assets can reduce their Age Pension, affect aged care costs, and even put their own financial security at risk.

What happens when you gift your home?

Centrelink treats gifted assets differently to sold assets. If you give away more than $10,000 in a financial year (or $30,000 over five years), the excess is still counted as an “asset” for the purposes of the means test.

That means even if you no longer own the property, Centrelink may still treat you as if you do. The impact? A lower pension or higher aged care fees.

Risks for retirement living

If you’ve gifted your home, you may have fewer options when it comes to paying entry costs in retirement villages or land lease communities. You could find yourself with less flexibility — and fewer protections — than you expected.

A better way to plan

Before making big financial moves, it’s worth looking carefully at how gifting will affect your long-term affordability and security.

💡 Gifting may feel generous, but protecting your own financial stability should always come first.