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receiving gift from overseas

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Newbie

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Replies 4

hi,

if i were to recieve a substantial amount from my family overseas, would I need to pay tax on that amount? Are there limitations to the amount and/or frequency? And would it matter if it's a gift or inheritance?

thanks.

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ATO Certified

Devotee

Replies 0

Hi @marmeij,

 

Thanks for posting! As @macfanboy mentioned, you usually don't have to declare rewards or small gifts on your tax return. However, gifts may be taxable if they are large amounts, or if you receive them as part of a business-like activity.

 

If you anticipate receiving a large sum of money and you're not sure whether it's taxable, you can contact our early engagement team and have a chat. Head over to our website to request a follow up phone call or email, and the team can consider how tax law might apply to your situation and get back to you within 3 working days.

 

Thanks!

4 REPLIES 4

Taxicorn

Replies 3

Any gifts or inhertance are generally tax free.

However, if you are receiving regular "gifts of money" it may look suspicious and could warrant an investigation from the ATO

Newbie

Replies 2

thanks! I understand, this would only be a once off.

Reason why I asked about the frequency, in some countries you can give your children a max certain amount tax free once a year. So for example, max $5,000 once a year. But here that doesn't apply I understand. And you say 'generally' tax free, when are they not?

Taxicorn

Replies 0

Sorry wrong use of the word generally.

Cash gifts are tax free.

 

Best answer

ATO Certified

Devotee

Replies 0

Hi @marmeij,

 

Thanks for posting! As @macfanboy mentioned, you usually don't have to declare rewards or small gifts on your tax return. However, gifts may be taxable if they are large amounts, or if you receive them as part of a business-like activity.

 

If you anticipate receiving a large sum of money and you're not sure whether it's taxable, you can contact our early engagement team and have a chat. Head over to our website to request a follow up phone call or email, and the team can consider how tax law might apply to your situation and get back to you within 3 working days.

 

Thanks!

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