Author: DamienATO(Community Support)Community Support 1 Dec 2025
Hi @Marty91,
Depositing large amounts of cash that's been legitimately accumulated over many years shouldn't create tax problems for your parents-in-law or yourselves, provided the money represents genuine savings from already-taxed income and asset sales.
Banks are required to report cash deposits of $10,000 or more to AUSTRAC, but this is for anti-money laundering purposes, not tax enforcement. We don't automatically investigate large deposits. We're more interested in unexplained wealth that doesn't match someone's reported income history.
If you're depositing the funds on behalf of your parents-in-law, this won't create tax issues for you personally. The money remains theirs, and any future interest earned should be reported on their tax returns, not yours.
To protect everyone involved, keep records showing:
- the money belongs to your parents-in-law
- it came from legitimate sources (old income, asset sales)
- you're acting as their agent for banking purposes only.
If we ever ask about the deposits, your parents-in-law would need to explain the source of the funds. Having some documentation of major asset sales or withdrawal patterns from previous years would be helpful, though we understand this might be limited given the timeframe.
Consider consulting a tax agent who can help document the situation properly and provide specific advice based on your family's circumstances. They can also help if any questions arise about the deposits in the future.
Check out our Tax on gifts and inheritances article for more info.
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