PolicyGifting of Assets SDMS ID Number P2012/0179-031SDMS Title Gifting of Assets – Policy – P2012/0179-031Effective From 1 October 2013Applies to All Housing Tasmania clientsCustodian Manager Housing StrategySummary This policy outlines how Housing Tasmania manages clients who

gift their assets to ensure they are or remain eligible for a Housing Tasmania home.

Replaces Doc. No. n/aAuthor Area Housing Strategy – Social and Affordable Housing Policy UnitContact Manager, Housing StrategyReview Date January 2017

Policy Purpose The purpose of this policy is to ensure gifting of assets is not used as a means for clients to meet the Housing Tasmania threshold for allocating properties.

Policy Intent The intent of this policy is to ensure that Housing Tasmania targets allocation of properties to clients who most need it.Housing Tasmania properties are a limited resource and as such, Housing Tasmania directs them to those who need it most. Some applicants may intentionally try to meet the Housing Tasmania threshold for allocating a property by gifting their assets.

Application This policy is relevant to all applications at Housing Connect for housing assistance with Housing Tasmania.

What is gifting of assets?

Gifting is a term used when the applicant or their partner gives away assets. Gifting includes where a client or their partner transfers assets for less than the market value and does not receive adequate consideration for the gift or transfer in the form of money, goods or services.

Assets An asset is any property or item of value that the applicant or their partner, own or has an interest in, including those held outside Australia. The value of the asset is what would be received for them if they were sold. Generally, any debt secured against an asset is deducted from the value of that asset. The following are classified as liquid assets:

cash; savings; shares, bonds and investments; lump sum payments; net fixed assets of a business; superannuation funds that have been realised; and/or real estate.

Assets which are not included

Payments excluded from financial assets eligibility include: Criminal injury compensation payments; Ex-gratia payments to victims of abuse in state care;

and Federal government one-off payment of $25,000 to

widows of surviving Australian servicemen who were taken prisoner by Korean forces during the Korean conflict.

Superannuation:

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Applicants for Housing Tasmania properties with money invested in superannuation often exceed the assets level and as such would be ineligible for assistance. However, these applicants are often in receipt of a Commonwealth benefit and may not be able to access their superannuation funds.Funds invested in roll over superannuation funds are excluded from the assets eligibility limit until the monies are realised. Verification of financial assets can be a bank statement, statement from a building society, legal firm, credit union or a Statutory Declaration.Assets such as cars, small boats, paintings, and jewellery are not included in the eligibility assessment process.

What is not Gifting of Assets

Gifting does not include the selling or reducing of assets to meet normal expenses, for example to buy consumer goods like a fridge or washing machine, for home maintenance/improvements, or to pay for holidays. It does not include payment for services received, e.g. lawn mowing.

How Housing Tasmania knows if a client has gifted an asset

Housing Tasmania will be able to identify those clients who gift assets:

through an adjustment in their Centrelink benefits; or through identification of a property owner through the

LIST (Land Information System Tasmania); or where an Administration Officer or an Officer of the

Access and Support team suspects gifting may have occurred; or

from information received from a third party.Centrelink have guidelines which determine penalties for gifting assets. Centrelink clients who have gifted assets above and beyond set limits have their benefits/pensions reduced as if they were receiving consideration for those assets. This means if clients give away money or goods from which they could have received a financial advantage, Centrelink will consider an income from them and reduce the pension or benefit accordingly. This is one way that Housing Tasmania will be able to ascertain that gifting has occurred.The LIST option relies on clients self-identifying in most cases. This check is performed as part of the allocation interview process.

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Penalties Housing Tasmania may apply

Where Housing Tasmania has identified that gifting has occurred, and the amount would have taken the client over the Housing Tasmania threshold for allocating a property, clients will incur a six month suspension to their application for a property with Housing Tasmania. The rationale for this aims to address the inequality created from the gifting of assets.At the end of the suspension period, if Centrelink are still reducing the client’s income, the client will have their income deemed to what it should have been if they hadn’t gifted assets for the purposes of rent setting.

Client Information To ensure clients are connected to properties with features and benefits that match their need, there is an expectation that the information clients provide is accurate and up-to-date.Clients can contact Housing Connect if there are changes to their circumstances.

Discretion Discretion allows organisations to be more responsive through early intervention/prevention.Discretion may be applied to a client’s application for housing assistance and/or support at the time of assessment with Housing Connect.Housing Tasmania has the discretion to wave the suspension if clients can demonstrate extenuating circumstances as to why gifting was necessary. The decision must be adequately documented on the relevant tenancy file.This supports the creation of mixed communities which promotes social and economic opportunities for all clients.

Legal Framework This Policy adheres to the Residential Tenancy Act 1997

Exemptions Nil

Responsibilities/ Delegations

All Housing Operations staff are responsible for ensuring the correct use of this policy. Area managers are responsible for management of policy application.

Disclaimer This is a statewide policy and must not be re-interpreted so that subordinate policies exist. Should discrete operational differences exist, these should be set out in an operating procedure or protocol that must be approved at the same level as this policy.

Audit and Failure to comply with this policy without providing a good Page 4 of 5

Compliance reason for doing so, may lead to disciplinary action. Compliance with this policy is monitored by the Manager Housing Operations, through the delegated Area Managers.

Procedures and Forms

Nil

Related Policies Eligibility for Housing Tasmania properties PolicyHousing Assessment System Policy

Policy Title and Version Gifting of Assets vEffective Date 1 October 2014Review Date January 2017Document Number P2012/0179-031Replaces Document Number

n/a

Custodian Housing Tasmania, Social and Affordable Housing PolicyApproved by Manager Housing Strategy

This Policy may be varied, withdrawn or replaced at any time. Compliance with this directive is mandatory for the Department of Health and Human Services. Please Destroy Printed Copies. The electronic version of this Policy is the approved and current version and is located on the Agency’s intranet. Any printed version is uncontrolled and therefore not current.

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