Hi ATO team, My adult children are currently suffering mortgage stress and I want to assist if possible by paying extra payments into their mortgage account, until they get back on their feet. I am in a position to assist them for a time so will be paying this money from income earned (tax has been paid on this income) I just wanted to ask if there are any implications in terms of interest or tax charges if I was to do some extra repayments straight into their home loan account, no actual cash will exchange hands as such, just me paying extra payments each fortnight onto their mortgage. I won't be charging any interest at all just helping to pay to reduce the amount owing / assist in paying home loan sooner. Will this or can this cause any tax issues to either myself or them? The home loan is obviously in their name and I don't have any part in it on documentation or interest in the property. Also, how many repayments can I make or how much money can I help pay off per year if there is a limit? I am not in a position nor want to pay the loan in full, I am looking at possibly helping for no more than a two year period, to assist them relieve some financial stress. Looking forward for your response.
720 views
4 replies
As long as you are not expecting anything in return (such as interest) or you do not materially benefit from the transfer of money then this would be classed as a gift. Gifts are not assessable income so do not need to be recorded on the recipients tax return and there is no limit to the amount that you can gift.
https://community.ato.gov.au/s/article/a079s0000009GnFAAU/tax-on-gifts-and-inheritances
All replies
As long as you are not expecting anything in return (such as interest) or you do not materially benefit from the transfer of money then this would be classed as a gift. Gifts are not assessable income so do not need to be recorded on the recipients tax return and there is no limit to the amount that you can gift.
https://community.ato.gov.au/s/article/a079s0000009GnFAAU/tax-on-gifts-and-inheritances
Thank you so much MegK, appreciate your response to this.
While there are no tax implications in regard to gifting, if you are receiving a Government pension or allowance there are rules in regard to how much you can gift before this affects your assets test. (and potentially your pension or allowance). Check with Human Services for information about this. (this is not an ATO query)
Thanks Taxduck, I am not receiving any government assistance/pensions/allowances, just normal income, same as the kids. Appreciate your response to this.
Featured articles
15 Apr 2026 · 4 min read time
15 Apr 2026 · 8 min read time