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Do I have to pay the tax for the money transferrer from my friend's overseas account

Newbie

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Hi, one of my parent's friends' kid will attend an Australian uniservity. To save the transfer fee, we have discussed to use my Australian account to transfer the tuition fee via Bpay. Will I be charged the tax for the money he transffered to me from his international account? Many thanks! 

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Most helpful response

ATO Community Support

Replies 1

Hi @Shirley3,

 

Gifts of money sent from overseas are not looked at for tax purposes. If it is a genuine cash gift and not received due to employment, investments, interest or is not assessable, it does not have to be reported. Bear in mind Austrac is a federal govt' dept and are aware of monies entering and leaving Australia, they may advise us of this amount. You may have to explain where the money is from if this occurs.

 

You may have bank charges in relation to international transfers, however, you would need to discuss this with your bank.

 

All the best.  

2 REPLIES 2

Most helpful response

ATO Community Support

Replies 1

Hi @Shirley3,

 

Gifts of money sent from overseas are not looked at for tax purposes. If it is a genuine cash gift and not received due to employment, investments, interest or is not assessable, it does not have to be reported. Bear in mind Austrac is a federal govt' dept and are aware of monies entering and leaving Australia, they may advise us of this amount. You may have to explain where the money is from if this occurs.

 

You may have bank charges in relation to international transfers, however, you would need to discuss this with your bank.

 

All the best.  

Newbie

Replies 0

Many thanks Jodie!