Is there a gift tax in New Zealand?

No, gift duty was abolished, so you can gift money without paying gift tax. However, large gifts can still affect a means assessment for the Residential Care Subsidy, which looks back at gifting over set limits.

How much can I gift before it affects aged care?

The Residential Care Subsidy assessment allows gifting up to set annual limits, with a different allowance for gifts made well before applying. Gifts above those limits can be counted back as assets. The limits are set by the rules and change, so check the current figures.

Why does gifting matter for residential care?

Because the means assessment can add back gifts above the allowed levels to your assets, gifting away assets to qualify for the subsidy can be unwound. Plan gifting carefully and get advice.

Gifting Calculator

This New Zealand calculator helps you understand the effect of gifting money, noting that while there is no gift duty, large gifts can affect residential care subsidy assessments. You enter the gift, and it shows it against the gifting levels that matter for aged-care means testing, helping families gift thoughtfully.

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Annual gift amount

Number of years gifting

Allowed recent annual gifting

Recent period (years before applying)

indicative gifting position for a care assessment

Total gifted$0

Allowed in recent period$0

Possibly added back$0

There is no gift duty in New Zealand. But the Residential Care Subsidy means assessment can add back gifts above the allowed levels, with a tighter limit in the years just before applying. The limits are set by the rules and change, so confirm the current figures and get advice. Estimate only.

How it works

The calculator totals your gifting over the years, then compares it against the allowed gifting in the recent period before a residential care application. Gifts above the allowed annual level in that period, and large historic gifts, can be added back to your assets in the means assessment. The result is an indicative view of how much might be counted back, to highlight whether your gifting could affect a future subsidy.

Worked example

Gifting $10,000 a year for 5 years is $50,000. If the allowed gifting in the recent period is $7,000 a year, then $3,000 a year of that, about $15,000, could be added back as assets in a care assessment. This is why gifting to qualify for the subsidy can be unwound, and advice matters.

Related calculators

Aged Care Means Test Calculator: the care subsidy test.
Helping Children Buy Calculator: gifting a deposit.
Estate Value Calculator: your estate.

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