2 hours ago
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April 8, 2026 — 5:01am
When I inherit my mother’s house, can I sell it and distribute the proceeds to my six grandchildren without affecting my age pension? As executor, can I direct the assets to them, or would the will need to specify this in advance?
As I understand it, you intend to pass the proceeds of your mother’s home to your grandchildren after her death. That cannot be done at your discretion as executor.
If you inherit the property, it becomes your asset, and any subsequent gift would be subject to Centrelink’s deprivation rules, which could reduce your pension. Even if you refused an inheritance in favour of others once you are the named beneficiary, it would still be subject to the deprivation rules.
The better solution is for your mother to structure her will, so the assets pass directly to the grandchildren. That way, the proceeds never form part of your assets and will not affect your pension.
I’ve heard that pensioners on rent assistance have had their payments reduced. Is this true?
No, this is not correct. Rent assistance for pensioners has not been reduced. In fact, the maximum payment has increased to $219.40 per fortnight for single pensioners as of March 2026, and these rates are indexed twice yearly in March and September to keep pace with inflation.
You may be thinking of a few different things. First, while rent assistance itself hasn’t been cut, many pensioners are finding their overall pension payment has reduced due to changes in the deeming rates that came into effect on March 20.
These rates increased from 0.75 per cent to 1.25 per cent for the lower tier, and from 2.75 per cent to 3.25 per cent for the upper tier, which means Centrelink now assumes you’re earning more income from your financial assets, even if you’re not.
Second, while rent assistance does increase with inflation, the harsh reality is that it’s not keeping up with actual rental increases in many parts of Australia. When your rent goes up by $50 or $100 per fortnight, but your rent assistance only increases by a few dollars, it certainly feels like you’re going backwards – and you are, even though the payment itself hasn’t been cut.
If you believe your rent assistance has been incorrectly reduced, contact Centrelink immediately to check your entitlement and ensure your rental details are up to date.
We are self-funded retirees in our late 70s with about $3 million in a self-managed super fund. We own our home outright, valued at about $4.5 million. Our plan is to spend part of each year living with our son and his family in another city so we can be closer to our young grandchildren, and this may eventually become permanent. They are considering buying a larger home with space for a granny flat or similar arrangement for us. We would like to help financially but are unsure of the best approach. Should we withdraw about $1 million from our super, or would it be better, as our adviser suggests, to borrow against our home and service the interest?
Given your ages, I don’t think taking out a loan is a good idea. I’ve always believed it’s better to help your children sooner rather than later, so my preference would be to withdraw the money from your super fund and provide it to them. You will need to decide whether this is a gift or a loan – if it’s a loan, it should be properly documented, preferably with guidance from your solicitor.
Take great care with any granny flat arrangement. I’ve written about these many times, and the outcome is often not as smooth as people expect. There can be capital gains tax implications, potential friction with other siblings, and the big question of what happens if one of you eventually needs aged care.
Does the superannuation co-contribution apply to a 68-year-old retiree who draws both a part pension and super?
No. The co-contribution is designed for people who are still working. To qualify, at least 10 per cent of your total income must come from employment or self-employment. If your income is coming from a pension and super, you will not meet that test and therefore will not be eligible.
For those who do qualify, it is a valuable incentive. Income must be below $62,488 for the 2025-26 financial year, with the maximum benefit available if income is $47,488 or less. You must make a personal after-tax contribution to super and not claim a tax deduction. The government then adds 50 cents for every dollar contributed, up to a maximum of $500.
It’s a simple and effective strategy – but only for those still working.
Noel Whittaker is author of Retirement Made Simple and other books on personal finance. Questions to: [email protected]
- Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.
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