The Courier-Mail

CRUNCH THE NUMBERS

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Even the short-term gains from gifting might not be worth it when chasing a few extra pension dollars. “You have to give away $10,000 a year to pick up $15 a fortnight in pension,” Budreika says.

He says gifting has decreased in popularity in recent decades as the rules tightened and retirees chose to hold on to their savings.

“The gifting thresholds have not been indexed in 10-plus years so the effectiven­ess is actually decreasing in real terms,” Budreika says.

Jongen says people can be confused by the idea of gifting. “But that’s usually because they haven’t heard of it or may not be fully aware of what it covers,’’ he says.

“We’ve seen cases where customers did not think they were gifting, for example, where parents had to repay their child’s defaulted business loan because they had been guarantors. It is best to know the outcome before acting.”

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