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Overseas Gift from Parents

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1. If my parents send me gift say around 100-300K AUD for which Tax is already paid overseas, will I have to pay Tax for it here in Australia again? 
2.What if I keep it in my account say for about few months say 4 months. I will get some interest on that amount, do I need to pay tax for that amount only?
 
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Taxicorn

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1. No, if it is genuinely a gift.

2. Tax will be paid on any income generated from it (ie interest).

 

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Best answer

Taxicorn

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1. No, if it is genuinely a gift.

2. Tax will be paid on any income generated from it (ie interest).

 

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Moderator

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Hi @Query321,

 

@macfanboy is right, if it is a genuine gift you will not need to pay tax on it and you would only declare the interest earned on it. Just quickly adding to what has already been said, Taxation Ruling TR 2005/13 highlights the following characteristics and features of a 'gift' as follows:

  • there is a transfer of the beneficial interest in property,
  • the transfer is made voluntarily,
  • the transfer arises by way of benefaction, and
  • no material benefit or advantage is received by the giver by way of return.

Thanks, NateH

 

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