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Gift money

Newbie

Views 75594

Replies 6

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?
1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Certified Response

Former Community Support

Replies 4

Hi @KKChew

 

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

  • the money is a genuine gift and the donor doesn't expect anything in return
  • 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. 

6 REPLIES 6

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

Former Community Support

Replies 4

Hi @KKChew

 

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

  • the money is a genuine gift and the donor doesn't expect anything in return
  • 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?

Former 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!

Newbie

Replies 1

what if I receive a cash gift from a family member to buy an owner-occupied or investment property? @JodieH @YianaATO 

ATO Community Support

Replies 0

Hi @bruz

 

You won't need to declare a cash gift provided that you have evidence. It's common for young people to be assisted to purchase property by family in this way.

 

Most lenders will require the completion of a formal form and/or a statutory declaration from the family member. This will clearly state that the money is a gift and doesn't have to be repaid in the future.

 

That is satisfactory evidence of the gift.

 

RichATO