Gift duty is no longer payable for gifts made after 1 October 2011. As a consequence, if you have gifted the money or other assets after this date then you will not have to pay gift duty. However, before you make your next gift there are a number of matters we strongly recommend you consider. Matters to be considered include the impact of gifts in relation to:
- If you are considering gifting money or other assets (a house) to family members (or into a family trust,) be aware that their value can still be included in the asset test for the Residential Care Subsidy, should you require residential care later on.
- Another key issue to be aware of is the application of the “bright-line test”. This rule taxes residential land sales when a property is sold within the bright-line period and no other land sale rules are already taxing the property. The relevant bright-line period depends on when the property was acquired; acquisitions between 28 March 2018 and 26 March 2021 are subject to a 5-year bright-line period, and acquisitions from 27 March 2021 are subject to a 10-year bright-line (unless the property is a ‘new build’, in which case a 5-year period applies).