ATO Community

Domestic arrangement?

Newbie

Views 837

Replies 2

My mum wants to give me $320 per week to live with me in my primary place of residence.

To cover my mortgage payments, council rates, water, gas, electricity, internet.

I presume this is not taxable because it is not under normal rent circumstances. I'm paying all the bills. ?????

I've researched and it's a bit vague. "Commercial rates, commercial circumstances, only covering expenses of owning the house".

Is the entire mortgage payment counted as an expense or just the interest portion?
1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Devotee

Replies 0

@HG3 that is fantastic for you. It isn't taxable its a domestic arrangement the ATO don't need to kow anything about it. 

2 REPLIES 2

Champion

Replies 0

Generally speaking, payments from a family member for board or lodging are considered to be domestic arrangements and are not rental income. In these situations, you also can't claim income tax deductions. However, if the rent you're receiving is at commercial rates and you entered into the arrangement with a view to making a profit, you may be considered to have an 'at arms length' agreement and may need to report these amounts as income.

 

Most helpful response

Devotee

Replies 0

@HG3 that is fantastic for you. It isn't taxable its a domestic arrangement the ATO don't need to kow anything about it.