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In Australia, gifts and inheritances are generally not considered as income and don’t require you to pay any Australian taxes.

We define a gift with the following criteria:

  • there is a transfer of money or property.

  • the transfer is made voluntarily.

  • the donor does not expect anything in return.

  • the donor does not materially benefit.

If your gift fits the above criteria, you and the gift giver don’t pay tax on it. There’s no limit on how much money you can give or receive as a gift!

However, there are some occasions where tax may be payable, or capital gains tax (CGT) may apply. For example, in some instances when gifting property, shares or crypto assets, or when receiving money or an asset from a non-resident trust.

My parents want to give me money – do I have to pay tax on it?

No, gift money does not form part of your assessable income and you don’t have to declare it, regardless of the amount.

We understand family or friends might give you money to put towards a home deposit or to help you out with everyday living or study expenses. However, if that money goes on to produce income for you, for example bank interest, then this will become part of your assessable income.

A family member living overseas wants to give me money as a gift. Do I pay Australian tax on it?

In most cases, no.  A gift from a foreign resident for tax purposes, whether it’s money or an asset, is treated the same as a gift from someone who is an Australian resident for tax purposes.  If that money or asset goes on to produce income for you once you own it, then you’ll pay tax on that income.

If the money or asset has come from a foreign trust, even if received through another person, you may need to include the amount or value of the asset in your assessable income. You can find out more on ato.gov.au, about receiving payments from foreign trusts.

How do I prove money I’ve received is a gift?

The good news is if the money is a one-off gift, we won’t look at it for tax purposes. You won’t need to send us proof unless we ask for it. In this case, ask for a letter or other written evidence from the gift giver. They just need to state that the money is a gift.

Do I pay tax if I gift someone money or an asset, like a house?

Money

If you gift money to a friend or family member there are no tax implications for you or the receiver.

Assets

If you gift someone an asset like a house, we consider that transaction to be the same as you selling the house, and capital gains tax (CGT) will apply.  If you’re entitled to the CGT main residence exemption, it still applies.  If you’re not entitled to the CGT main residence exemption, or are only entitled to a partial exemption, you may be liable for tax.

I receive government benefits – will gifting money to someone impact my payments?

Giving away money or assets may affect you or the gift recipient if either of you receive government benefits.  For more information, we encourage you to check out the Services Australia's 'gifting' topic on their website.

How are other gifts like crypto assets or shares taxed?

Shares and crypto assets are known as capital assets, just like property.

If you’ve been gifted shares or crypto assets, you:

  • only pay tax on any income produced by the shares or crypto assets

  • may be liable for tax when/if you dispose of the shares or crypto assets later.

If you’ve gifted someone shares or crypto assets, we consider that transaction to be the same as you are selling the asset, and you may be liable for tax.

If you inherit shares or crypto assets, you:

  • don’t pay tax at the time of receiving them 

  • are liable to pay tax on any income produced by them 

  • may be liable for CGT when/if you dispose of the shares or crypto assets later. 

You can find out more on ato.gov.au about the tax consequences of selling shares and crypto assets.

I’ve received an inheritance from a deceased estate – do I have to declare it?

In most cases, no. Generally, as the beneficiary of a deceased estate, if you inherit money or assets such as property or jewellery, you don’t have to declare it unless: 

However, once you own the inheritance, you’ll pay tax on any income earned by it, for example bank interest or rental income.  You may also be liable for tax if you dispose of an inherited asset later. 

If the inheritance you receive is super from the deceased’s super fund, it’s called a super death benefit.  The super fund trustee will inform you if tax is payable, and if the tax will be deducted from the super death benefit.

You can read more here if you’re the beneficiary of a deceased estate.

Liked by Nosidak, sam.malik760 and 18 others
Nosidak(I'm new)I'm new
18 Apr 2026

My mum wants to gift me and my partner (50k) to go towards house renovation. She only wants to give it to us in cash (she’s very old school and still believes cash is king) Are we able to deposit it into the bank without it effecting our tax? Would we have to prove where it’s come from?

RachelATO(Community Moderator)Community Moderator
20 Apr 2026

Hi @Nosidak,


You can deposit the cash gift into your bank account without it affecting your tax. Cash gifts are not required to be declared and you won't need to pay tax on the gift itself, regardless of the amount.


Your bank may ask you to prove where the money came from as part of their standard verification processes. It would help if you had a letter or other written evidence from your mum stating that the money is a gift. This isn't something we require for tax purposes, but we do recommend having it in case questions arise later.


Once the gift is deposited, if that money goes on to produce income for you (for example, bank interest), you'll need to pay tax on that income. The gift itself remains tax-free.

zjonnyz(I'm new)I'm new
8 Mar 2026

Hi there,


My father passed away recently and back home in NZ we have a property tied up in a NZ family trust (which I am a beneficiary of) which we are about to sell. I am an Australian resident and want to know if I would be taxed on the money from the sale if it was a gift/distribution from the trust?


Thanks

KaraATO(Community Support)Community Support
9 Mar 2026

Hi @zjonnyz,


I'm sorry to hear about your father's passing. I’ll help guide you through what you need to do as best I can.


If you receive money or assets from a foreign trust (like your NZ family trust), even if it's received through another person, you may need to include the amount or value in your assessable income. This applies even if the trust describes it as a gift or distribution.


In Australia, gifts are generally not taxed, but money or assets from a foreign trust are treated differently. The key question is whether the NZ family trust is considered a 'foreign trust' for Australian tax purposes, which depends on where the trust is managed and controlled, and where the trustee resides.


If the money or asset you receive goes on to produce income for you (like bank interest if you deposit the funds), you'll may need to pay tax on that income as part of your worldwide income.


Given the complexity of foreign trust distributions and your specific circumstances, it's worth reaching out to our tailored technical assistance team for advice specific to your situation. A registered tax agent is also an option.

Emily888w(I'm new)I'm new
4 Feb 2026

Hi, if my mum inherited money from her parents deceased estate and she would like to gift it to me (100k), would that affect her pension payments?

RachelATO(Community Moderator)Community Moderator
4 Feb 2026

Hi @Emily888w,


From a tax perspective, your mum won't have to pay tax on the money she inherited from her parents' deceased estate, and she won't pay tax on gifting it to you. There are no inheritance or estate taxes in Australia, and gifts of money between family members don't have tax implications for either the giver or the receiver.


However, gifting money may affect your mum's pension payments. This is an important consideration. Giving away money or assets may affect government benefits, and Services Australia has specific rules about gifting and how that may impact her pension entitlements.


Your mum will need to check with Services Australia directly as they administer the pension and can explain the specific impact on her situation.

Tarrant(I'm new)I'm new
19 Jan 2026

Hi, my grandparents are gifting us 3 grand kids some gold that we are looking to sell. Just a few questions.

  1. should we get a letter stating this is a gift received on this date and current value is this etc - does it have to be from a lawyer or tax agent? Or just anyone as long as a witness?
  2. if we are then to sell the gold say next week I assume we then pay 100% CGT on any profit we make?
  3. the cgt will be any profit from day we received to then date of sale?

JayATO(Community Support)Community Support
20 Jan 2026

Hi @Tarrant,


The gift of gold from your grandparents isn't taxable income for you. Gifts in Australia generally don't attract tax, regardless of the amount, as long as the transfer is voluntary and the donor doesn't expect anything in return or materially benefit.


For your specific questions:

  1. A letter stating the gold is a gift is a good record-keeping practice. You won't need to send us proof unless we ask for it, so the letter doesn't need to be from a lawyer or tax agent. Your grandparents can simply write that the gold is a gift, and having a witness sign it adds extra documentation.
  2. When you sell the gold, capital gains tax will apply to any profit you make. The profit is calculated from the value when you received it to the sale price.
  3. Your understanding is correct. The CGT calculation is based on any increase in value from the date you received the gold to the date of sale.

Keep the gift letter for 5 years in case we ask to see it. Any capital gain you make from selling the gold will need to be included in your tax return for the year you sell it. You can find more information about tax on gifts and inheritances on our website.

Dtabb(I'm new)I'm new
17 Jan 2026

Hi,

I’m an Australian tax resident and citizen. My father (who is alive and an overseas citizen ) owns a house outside Australia. The property has never been in my name, and I have never held any legal or beneficial interest in it.


My father has decided to transfer the property directly into my sister’s name. She is a dual Australian citizen. As part of a family arrangement to finalise this decision, my sister will transfer some funds to me.


I am not transferring, surrendering, or giving up any asset, property interest, or legal or beneficial rights in return for this payment.


I would like to confirm whether this payment needs to be declared as assessable income in Australia, or whether it triggers any capital gains tax obligations for me.


I am seeking guidance to ensure I understand the correct tax treatment.


Thank you.


JayATO(Community Support)Community Support
20 Jan 2026

Hi @Dtabb,


No, the payment from your sister doesn't need to be declared as assessable income, and it won't trigger any capital gains tax obligations for you.


We define a gift as a transfer of money or property that's made voluntarily, where the donor doesn't materially benefit from the transfer.


Based on what you've described, you're receiving money from your sister as part of a family arrangement. You're not transferring, surrendering, or giving up any asset, property interest, or legal or beneficial rights in return for this payment. This means you haven't disposed of any asset that would trigger a capital gains tax event for you.


The payment from your sister is treated as a gift. If that money goes on to produce income for you in the future (for example, bank interest or dividends), then you'll need to pay tax on that income.

KnowledgeSeek(I'm new)I'm new
21 Dec 2025

Hi,

My spouse & I are Permanent residents. Can I gift my spouse a monetary gift every month & later down the track in a few years time could she send me a monetary gift as well ?


Thanks !

JayATO(Community Support)Community Support
22 Dec 2025

Hi @KnowledgeSeek


Yes, you can gift your spouse monetary gifts every month, and she can later gift money back to you. There are no rules around gifting cash between family members.


For tax purposes, genuine gifts of money between spouses don't create any tax implications for either the giver or receiver. There's no limit on how much money you can give or receive as a gift, and you don't need to declare gift money as income on your tax returns.


A genuine gift meets these criteria:

  • there's a transfer of money or property
  • the transfer is made voluntarily
  • the donor doesn't expect anything in return
  • the donor doesn't materially benefit.

If the gifted money later earns income (like bank interest), you'll need to declare that income on your tax return. But the original gift amount itself remains tax-free.

KiwiDeb(I'm new)I'm new
9 Dec 2025

I’m no longer an Australian for tax purposes and will receive inheritance from my Nz mother into a Nz acct. I’ve been warned there may be 40% tax applied (in Australia) as it’s coming from a NZ trust. The accountants in NZ don’t know, can someone confirm? I’m no longer in Australia.

RachelATO(Community Moderator)Community Moderator
9 Dec 2025

Hi @KiwiDeb,


You may not need to pay Australian tax on your inheritance from New Zealand as you're no longer a resident for tax purposes. Since you've ceased being an Australian tax resident, Australian tax rules don't apply to your foreign income or inheritances received overseas.


In Australia, inheritances are generally not considered taxable income and don't require you to pay tax. This applies whether you receive the inheritance from an Australian resident or a foreign resident. However, there can be exceptions when money or assets come from a foreign trust, which may require the amount to be included in your assessable income - but this only applies if you're still an Australian resident for tax purposes.


You should confirm your tax residency status using our residency decision tools and check with New Zealand's Inland Revenue about any New Zealand tax implications for your inheritance.

Lenard22(I'm new)I'm new
5 Sept 2025

A family member is wanting to gift me 100,000. This is a purely a gift, and will be put into offset account.

I am struggling to find if this triggers a CGT event or not?

RachelATO(Community Moderator)Community Moderator
8 Sept 2025

Hi @Lenard22,


When you dispose of an asset that is subject to capital gains tax (CGT), it's called a CGT event. An example of disposing of an asset is if you own a property and you sell or transfer the legal title to that property.


Receiving a gift of money and choosing to take that gift and place it into your offset account, won't trigger a CGT event.

roseyJ97(I'm new)I'm new
5 Sept 2025

I am an australian resident and received an inhertiance, super death benefit pay, as well as a final leave and entitlements pay from my late mothers work. Do these inheritance payments get included in my income come tax time?

ATO Certified Response
KaraATO(Community Support)Community Support
ATO Certified Response9 Sept 2025

Hi @roseyJ97,


I'm so sorry to hear about your mothers passing.


While there's no inheritance or estate taxes in Australia there may be tax obligations for any money received from the super death benefit you receive.


The tax owed from a super death benefit depends on:

  • whether you were a dependant of the deceased under tax law
  • whether it's paid as a lump sum or income stream
  • whether the super is tax-free or taxable (and whether the super fund has already paid tax on the taxable component)
  • your age and the age of the deceased person when they died (for income streams).

Based on what you've said, Tax will be applied to any amounts released to you if you're over the age of 18 and not considered dependants of the deceased.


Payments for unused leave and entitlements made after a person (employee) has passed away aren't subject to PAYG withholding.


They wouldn't be included in their payment summary and shouldn't be something taxable when paid to the beneficiary. 


This means you wouldn't then need to report those payments in your own tax return.

lee85(I'm new)I'm new
29 Aug 2025

If I’m currently a foreign resident for tax purposes and received a monetary inheritance from an Australian family member do I need to pay tax? This inheritance is equally divided between 2 Australian residents and myself as the 1 foreign resident. Are there any implications for the other beneficiaries?

JayATO(Community Support)Community Support
1 Sept 2025

Hiya @lee85


Nope. No tax on inheritance in Australia for any of you. I can't speak on the taxation laws in the country where you are a tax resident.

Vinuri(Newbie)Newbie
27 Aug 2025

Dear ATO,


I am a Permanent Resident of Australia and I am seeking clarification regarding the tax implications of receiving a monetary gift from my father. He intends to transfer funds from his local bank account to my local bank account, which I will then transfer to my Australian bank account to assist me in purchasing a property expected to be ready at the end of 2026.


I would like to confirm:

  • Whether receiving this money as a gift from my father will incur any tax liability.


  • If there is any possibility that the current rules regarding gifts could change before my property settlement date.


I appreciate your guidance on this matter.

Liked by Vinuri
JayATO(Community Support)Community Support
2 Sept 2025

Hiya @Vinuri


There will be no tax liability on receiving a gift from your father.


As for your question about whether there's a possibility of the current rules changing, we can't promise that this will never change. We can let you know that if there are ever amendments to any tax law, we would always communicate this well in advance.

Katied78(I'm new)I'm new
13 Aug 2025

I have a very dear friend who wants to gift me $120,000 so I can purchase a home. Is there really no tax implication on a gift of this size?

YEP(Devotee)Devotee
28 Aug 2025

Make sure you and the person gifting you funds have enough documentary evidence to show where those funds initially came from and that they were infact a gift, because there is onus of proof on every taxpayer to prove what they are stating is fact. Otherwise the ATO can treat those funds as income in your hands, and raise default assesments against you.


Refer to this https://community.ato.gov.au/s/question/a0JRF000003ims12AA/p00392496?referrer=a0N9s000000Dac8EAC

sam.malik760(I'm new)I'm new
13 Aug 2025

I would like to get some clarity about my situation. Our long term family friend (like family) wants to send a once off gift amount of $150,000 from overseas to help me with the house deposit. I wanted to know if this is something that would be taxed as the sender is not related to me by family and is overseas. Is there any information of who can send a monetary gift from overseas, like someone like family friend? Is there Any documentation required to prove it’s a genuine gift?

JayATO(Community Support)Community Support
14 Aug 2025

Hiya @sam.malik760


Even if it's not from family, if the money is given as a genuine gift it is not taxable. You don't need to provide any evidence, but if you would like to have some for your own piece of mind, you can ask your friend to write a letter outlining it is a gift.

Liked by JenniferATO
YEP(Devotee)Devotee
25 Aug 2025

The answer provided by the ATO is not exactly correct, and a "letter" may not cut it if you ever get asked by the ATO about it. Every taxpayer has a burden of proof that they must discharge. Have a read of this other post which also contains a reference to a Full Federal Court Case where a taxpayer could not discharge their onus of proof.


https://community.ato.gov.au/s/question/a0JRF000003ims12AA/p00392496?referrer=a0N9s000000Dac8EAC

Mcajmj1960(Newbie)Newbie
6 Aug 2025

Father died 6 months before mother died, mother was left everything in will ,them when she died left everything to children. Probate was done for mother and processed , death information sent to ATO for both parents and processed. Super fund sent funds to solicitor with information on taxable part of super and said it needed processing. Accountant contacted ATO was told unable to process tax for Father as Probate wasn't done for Father even though mother inherited all assets. Solicitor had me sign a waiver on fathers probate when mother died . Do I have to start the process for probate for Father now and start all over again or is there a more simpler way to sort this out

RachelATO(Community Moderator)Community Moderator
7 Aug 2025

Hi @Mcajmj1960,


The administration of an estate can be overwhelming, even more so when you’re now managing the affairs of two estates. We ask for Probate because it confirms who has legal authority to deal with someone’s tax affairs. 


In some states and territories, you may not need probate to manage a small estate. Our records need to show you are the legal personal representative (LPR) which will then allow us to release information or funds to you. 

cbeanon(I'm new)I'm new
9 July 2025

I would like to know if it's legal to receive a death benefit in full to avoid the tax my sister would incur on her half, as she is not financially dependent however I am. I would then gift her the full amount of her share, would that be a taxable payment?


Thank you.

paigengo(I'm new)I'm new
24 June 2025

My parents have divorced and sold the family home. The proceeds from the home will be split between my mother, father and myself.


Are there tax implications if I accept this gift?


Thanks

Orpheus8888(Newbie)Newbie
15 June 2025

My niece would like to support my sister as she nears retirement by gifting her a portion of the inheritance she received from her father. My sister has very little superannuation saved—would she be able to contribute this gift into her super fund?


Sarahjoe(I'm new)I'm new
15 June 2025

Hi there, my father is receiving an inheritance from abroad. Will this be taxed once received in Australia? He also has a debt with the ATO (although paying said debt off) will this inheritance be garnished to pay off the remaining debt before he receives it? Many thanks.

MattfromWA(I'm new)I'm new
12 May 2025

Hi, my parents 88(M) and 85(F) are both on full pension and want to sell their home and gift the majority of the proceeds to their kids and grandkids whilst they are still alive to see them enjoy it. They then want to rent a house at market rate from one of their kids who has it as an investment property. Are there any tax implications for my parents? Will the gifting affect their pension? Will the investment property owned by one of the kids be able to claim all its normal deductions?

Many thanks.

Chickenjockey1(I'm new)I'm new
5 May 2025

Hello,

My father who resides overseas and is selling a property overseas, he would like to gift me $300k on the sale, would I need to pay tax on this gift?


Thank you

kzism3(Newbie)Newbie
2 Apr 2025

Hi,


as part of the Chinese Wedding ritual, newly wed often receive red pocket from family and friends as part of their blessing. Amount received are often in cash, the bigger the wedding the more amount of guests the greater of the amount. Is this a taxable income? How to proof it to ATO ?

Jess99(I'm new)I'm new
2 Apr 2025

Hi,

My Dad recently inherited money from his Mother’s estate. All money was directly deposited into his account. One lot came from a bank and the other lot was a transfer from a family member. How does this work at tax time? Do I have to prove that both lots are inherited?


haribol(I'm new)I'm new
20 Mar 2025

Over the years, I moved money from Australia to my foreign account. In 2023, I transferred a large sum equivalent to $120,000 in AUD as a hand loan from my foreign account to one of my overseas friends for his personal use. After a year and a half, he returned my money to my foreign account, which was precisely the same amount that I had transferred. In other words, no interest was paid. I would now like to send my money back to Australia. Would there be any tax implications for me?

Toothless(I'm new)I'm new
7 Mar 2025

Hi!

I'm currently living in a shared house. We decided to use my bank account for shared bills such as internet and gas bill. May I know please if I will be tax for the money they are going to send to my account?

Thank you in advance.

ceej90(I'm new)I'm new
19 Feb 2025

Hello!


I’m currently working part time and struggling to keep things afloat with my little one and daycare etc. My brother lives overseas and has kindly said he would help me out by gifting me some money ($1000ish) each month or two while I get back on my feet.


Just wondering would I need to pay tax on this situation or because I will be basically using it straight away and not gaining anything from it (interest?) will it be considered a gift and exempt?

StarsetGorilla(I'm new)I'm new
19 Jan 2025

My partner and I want to buy a house, we have saved up majority of the deposit – my father is wanting to help out and gift me $50,000 and he is not expecting to receive anything back, he’s claimed he is willing to sign a letter stating this. It would very much help out towards getting us the loan. That being said however, we are aware he is also wanting to use his other saved up money to buy a house in the future; unbeknownst to him, we would like to help him out when that time comes.


In that future, would there be any ramifications if we wanted to separately help him out and give him a monetary gift for him to buy a house with? My partner and I were talking about it and it hit us that it may sound like we would be paying back a gift – which I understand goes against him not receiving something back, but that would not be the intent at all.

I just want to help my father out, so the idea is that he wouldn’t know about our gift to him.


Is this doable? or is it that once someone gifts you money, you no longer can ever give them a monetary gift in the future?


Can you please help us with our inquiry?

Liked by kaljitb
Money-struggle(Newbie)Newbie
19 Jan 2025

Dear ATO Representative/Team,


I hope this message finds you well.


I am seeking clarification regarding the tax implications of a financial gift I am set to receive from my father. The details are as follows:

• My father, who is over 65, had an insurance policy that was originally intended to be left to me. However, as the policy has now ended, the funds (amounting to $90,000) have been paid out to him. He wishes to gift this money to me.

• I intend to use $27,000 of this gift to repay my consolidated vehicle & personal loan and Zippay debt.

• The remaining $63,000 will be placed into a savings account as a deposit for my first home.


I would like to confirm:

1. Are there any tax obligations on receiving this gift from my father?

2. What taxes, if any, would apply to the interest earned on the $63,000 while it is in a savings account?


Your guidance on these matters would be greatly appreciated.


Thank you for your time and assistance. I look forward to your response.


Kind regards,

A guy who just wants a home for his family

Liked by Robbie56
Penguinface(I'm new)I'm new
26 Nov 2024

Hi,


id like to gift money to someone who is receiving jobseeker.


All I can find here and on services Australia is talking about a jobseeker/other social security recipient gifting someone money, not the other way round.


would there be any tax or other implications for the jobseeker recipient, if they receive a large cash gift? Would that stop them from being able to receive their payments moving forward?


thanks

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Tax on gifts and inheritances | ATO Community