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Re: Gift money

Newbie

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Replies 4

I am a tax paying resident. My overseas parent intent to gift me a sum of money ($50,000 in 2 installments) to pay for my house morgate. Do I need to pay tax on these 2 gifts?
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Most helpful response

ATO Certified Response

Community Support

Replies 2

Hi @KKChew

 

Generally you don't need to report money received as a gift in your tax return if:

  • the money is a gift from a family member for personal reasons
  • the gift isn't connected to any income-producing activities by you

 

However, if the money earns any interest in an Australian bank account, that's considered assessable income and you'll need to report that interest in your tax return.

 

You can find more information about income you must declare on our website.

 

Thanks, JodieH. 

4 REPLIES 4

Anonymous

Replies 0

Hi @KKChew

 

Questions similar to this have been answered before on this forum, have a look here.

 

Please note that while the above link refers to gifts from New Zealand, the same prinicples applies to gifts from anywhere in the world. 

 

hope this helps ...

Most helpful response

ATO Certified Response

Community Support

Replies 2

Hi @KKChew

 

Generally you don't need to report money received as a gift in your tax return if:

  • the money is a gift from a family member for personal reasons
  • the gift isn't connected to any income-producing activities by you

 

However, if the money earns any interest in an Australian bank account, that's considered assessable income and you'll need to report that interest in your tax return.

 

You can find more information about income you must declare on our website.

 

Thanks, JodieH. 

Newbie

Replies 1

Would there be a cap on the amount seen as a gift or can this be a substantial amount?

Community Support

Replies 0

Hi @Hennie

 

There is no cap on the amount as long as it meets the requirements of being a 'gift'.

 

All the best!