When the Loan Becomes a Gift
Family loans often fail because they rely on trust rather than documentation. Without a written agreement, courts and third parties may treat advances as gifts. This can cause problems in family law, bankruptcy, and Centrelink assessments. A simple loan document protects both sides and clarifies intent.
The Home You’re Sitting On
Many retirees hold most of their wealth in the family home. Reverse mortgages and the government’s Home Equity Access Scheme allow access without selling. HEAS offers lower interest and pension‑friendly treatment for modest income needs. Commercial products suit larger capital requirements but cost more over time.
Working Past 65
More Australians now work past Age Pension age, and the rules have changed. The work bonus, SAPTO, and super contribution changes improve outcomes for older workers. Super can still grow while a pension is paid. Understanding how tax, super, and Centrelink interact avoids costly mistakes.
Q & A
- Is there a government reverse mortgage?
Yes, HEAS offers lower interest and pension‑friendly income options.
- Do family loans really need written agreements?
Yes, documentation protects outcomes in court, bankruptcy, and Centrelink reviews.
- How does SAPTO affect tax after 65?
It raises the effective tax‑free threshold for eligible seniors.
