• Centrelink gifting & the five-year deprivation trap
• Special Disability Trust (SDT): set-up & spending rules
• TPD payout: drawdown design & sequence-of-returns risk
• Home sale proceeds: using the temporary assets-test exemption
• Non-super portfolio: tax drag & ownership structure
• Trusteeship governance: purpose-aligned decisions & records

Illustrative, de-identified story. Not personal advice. Outcomes vary. Eligibility decisions rest with Services Australia and other relevant bodies.

The situation

Jan and Michael (late 70s) downsized after decades in the family home. They gifted part of the surplus to help their adult daughter. Within months, their Age Pension dropped—amounts above the gifting free areas were treated as deprived assets and deemed as income for five years.

Stakes & constraints

• Tight cash flow during settlement and moving costs.
• Funds already transferred; minimal documentation.
• Concern about making it worse by “fixing” it themselves.

What often goes wrong

• Making a second large gift, compounding deprivation.
• Inconsistent reporting that triggers follow-up and stress.
• Missing the temporary assets-test exemption linked to home-sale proceeds.

What HFI did

• Mapped gifting rules against what had already happened; clarified free areas and deprivation periods.
• Reconstructed a simple paper trail: dates, amounts, purpose and timing.
• Designed a phased support approach and documented a family-loan alternative with their solicitor.
• Prepared a clear reporting pack for Services Australia and set review reminders.

Result

Payments stabilised within the expected range after Services Australia’s decision and support continued under a compliant, documented approach. Decisions are made by Services Australia; outcomes vary.

Illustrative, de-identified story. Not personal advice. Outcomes vary. Eligibility decisions rest with Services Australia and other relevant bodies.

The situation

A family wanted to provide long-term support for their adult son with severe disability. A “disability trust” had been set up informally years earlier. It didn’t meet SDT requirements, spending was ad-hoc, and record-keeping was thin. Centrelink eligibility was at risk.

Stakes & constraints

• Maintaining benefits and concessions while funding meaningful support.
• Trustees (parents) wanted clarity; a sibling would take over later.
• Anxiety about DSS/ATO rules and allowable spending categories.

What often goes wrong

• Assuming any trust for a person with disability counts as an SDT.
• No spending policy; later scrutiny questions purpose and limits.
• Missing trustee records: minutes, approvals, evidence of allowable expenses.

What HFI did

• Confirmed SDT eligibility and compared alternatives (pros/cons and trade-offs).
• Worked with their solicitor on the formal deed while we set trustee processes.
• Established investment and spending policies; tracked the allowable discretionary amount.
• Built simple, repeatable records: approvals log, receipts checklist, periodic minutes.

Result

Trustee decisions became transparent and purpose-aligned. Reporting was straightforward at review time, and the structure was designed to support ongoing eligibility. Eligibility remains a Services Australia decision; our role is to align strategy and records with the rules.

Illustrative, de-identified story. Not personal advice. Investment returns vary. Past performance is not a reliable indicator of future performance.

The situation

Sam (early 50s) received a TPD payout and stopped work on medical grounds. They needed reliable income for 25+ years and were worried after markets fell. A friend suggested relying on “high-yield shares” and taking the rest as needed.

Stakes & constraints

• Multiple accounts (super, non-super) with different tax and access rules.
• Centrelink implications once assets and income were assessed.
• Fear of drawing too much in down markets and eroding capital.

What often goes wrong

• Starting aggressively, then selling at lows to meet bills.
• No liquidity buffer; every expense forces a sale.
• Tax and Centrelink settings working against the withdrawal pattern.

What HFI did

• Set a rules-based drawdown with a 2–3 year cash buffer to ride out market dips.
• Matched risk to time horizon: near-term needs defensive; later needs growth.
• Coordinated tax and Centrelink: which account to draw first and how to record it.
• Agreed rebalancing rules and review triggers (market moves, health, law changes).
• Coordinated with doctors, trustee and lawyer to keep evidence consistent.

Result

Sam had a clear spending plan, knew when to rebalance, and which account to draw from. The structure was designed to support steadier income through cycles and to minimise avoidable risk. Investment outcomes are not guaranteed.

Illustrative, de-identified story. Not personal advice. Outcomes vary. Eligibility decisions rest with Services Australia and other relevant bodies.

The situation

Rita sold her home to move closer to family. While searching for a replacement property, sale proceeds sat in a savings account. Her pension dropped because the temporary assets-test exemption wasn’t applied correctly and reporting was unclear.

Stakes & constraints

• Rising rents and living costs while between homes.
• Need to keep funds clearly segregated and purpose documented.
• Strict timelines for the exemption to apply.

What often goes wrong

• Mixing sale proceeds with everyday cash.
• Vague statements about intent to purchase, leading to questions at review.
• Missing dates and evidence for settlement and use of funds.

What HFI did

• Documented intent and timing for a replacement home; kept proceeds in a segregated account.
• Clarified the exemption rules and aligned reporting with Services Australia.
• Set reminders for review dates and created a simple evidence pack.

Result

Rita understood what was counted, what was exempt, and for how long. Her position reflected the rules more accurately after Services Australia’s assessment. Individual outcomes vary; decisions are made by Services Australia.

Illustrative, de-identified story. Not personal advice. Investment returns vary. Past performance is not a reliable indicator of future performance.

The situation

Alex and Priya held a sizeable non-super portfolio. Trades were frequent, gains were realised in the higher-tax earner’s name, and franking credits went unused. After-tax returns lagged their expectations.

Stakes & constraints

• Balancing growth and income while minimising tax drag.
• Considering trusts/companies without over-complicating.
• Keeping records tidy for the accountant.

What often goes wrong

• Chasing yield or themes without a rebalancing rule.
• Realising gains in the wrong name or entity.
• Ignoring asset location and franking credit use.

What HFI did

• Coordinated ownership and asset location (individual, joint, trust/company where suitable).
• Set rebalancing rules and an annual review rhythm.
• Integrated portfolio records with the accountant for efficient tax reporting.

Result

The portfolio ran on clearer rules with documentation to match. The structure was intended to improve tax efficiency within the rules. Investment returns vary; past performance is not a reliable indicator of future performance.

Illustrative, de-identified story. Not personal advice. Outcomes vary.

The situation

A family trust funded care and quality-of-life expenses for a beneficiary with significant needs. Spending was well-intentioned but decisions weren’t documented against purpose or rules. Later scrutiny questioned limits and authority.

Stakes & constraints

• Ensuring spending is purpose-aligned and defensible.
• Multiple trustees, including a future successor.
• Keeping records simple enough to maintain.

What often goes wrong

• No spending policy; approvals inconsistent.
• Missing minutes and source records.
• Decisions drift from purpose, creating risk.

What HFI did

• Wrote a spending and investment policy linked to purpose and rules.
• Introduced an approvals log, periodic minutes and evidence templates.
• Scheduled reviews and trustee education so the framework survives handovers.

Result

Trustees made decisions with confidence and a paper trail. The approach was designed to reduce compliance risk and keep spending aligned to the trust’s purpose.

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General advice disclaimer
The information on this website is general in nature and does not take into account your personal circumstances, objectives or financial situation. You should consider whether the information is appropriate
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Performance & case-study disclaimer
Case studies are illustrative only. Eligibility decisions rest with Services Australia and other relevant bodies. Past performance is not a reliable indicator of future performance.

AFSL statement
Health & Finance Integrated is a Corporate Authorised Representative of Able Financial Services (ABN 27 646 319 164) AFSL 530596, Shop 6/23 Hassall Street, Parramatta NSW 2150.