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Will I be taxed if a family member gifts me $200,000?

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If I were to be gifted a hefty amount of money from my family member abroad as an early inheritance, will I be taxed?

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Hi @sing11,

 

Welcome to our Community!

 

Generally speaking, a personal gift you receive from a family member for personal reasons, where there is no connection between the gift and any income-producing activity by you is not assessable income.


Taxation Ruling TR 2005/13 provides principles relevant to the determination of whether the receipt of money constitutes a gift. This ruling highlights that rather than attempting to define a ‘gift’, the courts have described a gift as having the following characteristics and features:

  • 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.

You'll need to keep records stating the loan is a gift. and any interest you earn on the loan in an Australian bank account may be subject to tax.


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

 

Thanks, JodieH.

 

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Champion

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HI @sing11 

 

You may need to contact the department of human services to notify the government of the transfer.

If the amount is deemed a gift there shouldn't be any tax implications.

 

Read more about gifting here

Best answer

ATO Certified

Community Support

Replies 0

Hi @sing11,

 

Welcome to our Community!

 

Generally speaking, a personal gift you receive from a family member for personal reasons, where there is no connection between the gift and any income-producing activity by you is not assessable income.


Taxation Ruling TR 2005/13 provides principles relevant to the determination of whether the receipt of money constitutes a gift. This ruling highlights that rather than attempting to define a ‘gift’, the courts have described a gift as having the following characteristics and features:

  • 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.

You'll need to keep records stating the loan is a gift. and any interest you earn on the loan in an Australian bank account may be subject to tax.


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

 

Thanks, JodieH.

 

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