Buying 1/3 share with testamentary trust?

It wasn't you?

 

Yes it was s1207 I was referring to I think.

I still find it amazing people consider giving away assets to try to get the pension

 

Yeah - Makes as much sense as choosing to be unemployed to avoid paying child support to feed your own kids.

Rule #1 in income. Earn as much as you can. Sure you will pay a lot of tax but its always (usually) more than the ATO share.
Rule #1 of retirement money. Dont give it away. It has to last. It never comes back. I have rarely ever heard of a old parent who has gifted money to their kids being asked - Hey Dad do you want that money back ?
Rule #1 of pensions. You really dont want one. You would prefer to be self funded and ineligible for it.

s1207 basically says - "Forget seeking support if you are associated with a company, partnership, trust etc if it has income assets or wealth".....There are some people who do need legal advice on rescinding trust entitlements . Doing this can avert the issue. But its generally a forever thing. Planning these issues from mid 50s is wise. Some can take a long time to unwind.

 

I like this analogy. Could be a cultural thing and a bias towards”free” as well. Thanks for the insights everyone!