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Overseas Inheritence

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Hi,

 

My parents live abroad and are quickly approaching their 90's. Given their country's political climate and their age, they have decided to give me my inhertitence this year.

 

Will I be required to pay tax on any inheritence gifted to me? As far as I am aware I will only be receieving cash.

 

Thanks,

DG.

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Devotee

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No, there is no gift tax in Australia but you need to have evidence it was a gift rather than income derived overseas if audited

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Most helpful response

Devotee

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No, there is no gift tax in Australia but you need to have evidence it was a gift rather than income derived overseas if audited

Former Community Support

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Hi @Dgre,

 

@SM2304  is correct money given as a gift from a family member for personal reasons is not considered taxable income and you are not required to be report it in your tax return. However,  if you earn any interest on the money in an Australian bank account you will need to declare this interest on your tax return.

 

The ATO defines a gift by the following criteria: 

  • There is a transfer of money or property
  • The transfer is made voluntarily
  • The donor does not expect anything in return for the gift
  • The donor does not materially benefit from the gift.

 

Ultimately, if the money is gifted to you and not to benefit your parents, the money is for you to spend as you wish.

 

Hope this provides some further clarification

 

JacquelineATO