It is important to understand what the implications are in a legal climate that no longer attracts “gift duty.”
Pre 1 October 2011
Up until October 2011, “gift duty” was payable on any gift or forgiveness of debt made over $27,000.00 within a 12-month period.
Post October 2011
“Gift duty” has now been abolished with the effect that a gift of any amount can be made without incurring tax. There are however potential asset protection implications in giving away as much as possible as soon as possible.
Before making a gift, it is important to get the right advice as once it is gifted it cannot be undone! Make sure that you fully understand the potential implications that gifting a large sum may attract.
