What tax implications do myslef and my parents need to consider before them loaning me money?

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(Newbie)Newbie

20 Sept 2023

My parents are considering lending me around $300k to pay off my homeloan. This would be a loan not a gift and would involve interest being paid.

From what I can work out they can gift me this money without issue.

If it was a loan, I can repay them and the principal amount is not taxable for them but the interest is. Is this correct?

Could I repay the principal amount and then gift them the interest as a lump sum?

Also, they are not on a pension but they do have a Centrelink heath card.

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(Taxicorn)Taxicorn

21 Sept 2023