Do i declare or pay tax on gifted money? | ATO Community

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(Newbie)Newbie

16 Oct 2023

Hi ATO,

I've moved to Australia a few years ago and am currently waiting on my permanent residency. In the meantime, my parents are looking to transfer a lump sum of money (around 50k aud) to me so I can pay the deposit for a house when I decide to buy one. Until then, this money will be sitting in my savings account.

As far as I understand from the website and the answers here, this is considered as gifted money. I do not need to declare or pay tax on this lump sum . However, if there's an interest generated by this money, than it would be subjected to income tax. Can you please confirm that this is the case?

Either way, do I need to declare this transaction to ATO at all?

Thanks in advance!

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9,808 views

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(Devotee)Registered Tax Professional

16 Oct 2023

Hi,

There is no tax on the gifted 50k. You don’t need to declare this transaction to the ATO. However, you should keep records to prove this was a gift.

Any interest earned will be taxable income and needs to be declared on your tax return.

Toby

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Most helpful reply

(Devotee)Registered Tax Professional

16 Oct 2023

Hi,

There is no tax on the gifted 50k. You don’t need to declare this transaction to the ATO. However, you should keep records to prove this was a gift.

Any interest earned will be taxable income and needs to be declared on your tax return.

Toby

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Do i declare or pay tax on gifted money? | ATO Community