Be very, very careful. If you gift someone money, Centrelink may cancel or reduce any pension or benefit you may rely on - for a period of years. Centrelink has always ignored the home you live in as an asset (be it big or small), but this could change. Also, if you buy a cheaper home, the extra money you get from the sale of your first home will be treated as an asset. You should also check for any tax implications. If you get into difficulties later in life you cannot expect your relatives who have had money from you to be willing or able to help you out. The other problem which can arise is how such gifts might affect your will. Beneficiaries in the will may expect the earlier "gift" to be ignored when you draw up your will and leave different amounts to other beneficiaries. I am not a qualified expert on financial matters, but the above comments are based on what I have seen happen to generous friends.

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I too have seen friends now totally reliant on just the pension because they gifted each of their 3 children money when they sold their house.

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I think it's a good idea, I am planning to do the same. Just check how it effects your pension if relevant under the gifting rules. Your smaller out goings on the smaller home will also free up some of your cash for living. As long as each child gets the same amount, there should be no issue. I have seen this arrangement make families grow stronger and you get to enjoy them getting a head start on life.

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