EDITOR: For some reason the most popular questions asked in the comments of my Australian Personal Tax FAQ are in relation to gifts and whether or not they are taxable. As I am not knowledgeable about this area I asked my accountant friend Andrew from Aussie Tax Time to provide some general guidance on the subject.
GUEST ARTICLE: Hi my name is Andrew, please note that my guest article is intended to give some guidance to the question Are Gifts Taxable? It isn’t personal financial advice and I don’t get into the full legal arguments.
In Australia, as an individual, we are generally taxed by the Australian Taxation Office on income that we receive from providing services i.e. working.
We can also be taxed for our investments such as interest earned in a bank account or Dividends received because we own some shares, these are classed as income. We may also be subject to Capital Gains Tax (CGT). This is a tax on increases in investment Assets such as shares or property.
As a general rule if the Gift is not covered in the above situation then it will not be subject to income tax.
The ATO NEXUS
So what is the test? So there is a great word called NEXUS that the ATO like to use for many things. It means is there a direct link between the gift and the employment (i.e. working) or in the case of the property the gift and the income stream of rent.
In terms of the employment If you get a gift of a car from your employer then the ATO will probably consider there is a sufficient NEXUS between you receiving the gift and your Job.
If your Dad gives you a car for your Birthday then you can be pretty sure it will not be taxable.
You also need to be careful of making a gift payment continuously where it has the perception of Income.
For example you rent your mothers investment house and pay below market rent and then gift her money every month this may be construed as a payment in lieu of rent and hence takes on the feel of Income and will be taxed accordingly.
ATO Cases Related to Gifts
Have a look at these cases to get an idea of the legal background:
Are Gifts Taxable – Case Studies
Here are some examples: all of them assume there is no NEXUS between the gift and employment
- We inherited some money and want to give it to our Son. – No Gift Tax on the gift to the Son
- My Mum gave her sister $139k is their gift tax – No Gift Tax to sister
- Parents giving money from Overseas to buy House – No Gift Tax although there may be rules about bringing in large sums of money to the country
- I won some money and want to give my mate enough to buy a house – Good friend, what is your email….Just Joking – No Gift Tax
- I wish to sell my home and buy a house for each son – No gift Tax and generally if the house was your main residence you probably will not be liable for CGT.
- My daughter has been renting from me for and now I want to sell it to them and give her a portion of the rent she has been paying – Good question and a little complex. OK she has been paying you rent, this is taxable to you. You want to sell the house to them; if you bought this after September 1985 generally you will have to pay CGT. Giving her back some money as a gift – No Gift Tax.
This guest technology review has been written by my friend Andrew from Aussie Tax Time. A CPA Accountant and an associate member of the institute of Company Secretaries (Sydney), with over 18 years experience in a commercial corporate environment, 15 of which were in CFO and/or Board Secretary Positions. Andrew also has more than 20 years experience in public practice accounting services.
Aussie Tax Time is a new CPA practice that provides advice for small businesses and people starting new businesses in relation to company structures, tax obligations and business planning. For more information contact them by email, Facebook or Twitter.
If you’re a blogger or an expert about a topic I cover on this blog I encourage you to contact me and I’ll consider publishing your guest article here including generous attribution and back links back to your website as thanks for your contribution
{ 79 comments… read them below or add one }
Hi,
Firstly, thanks for a great article – very helpfull indeed.
Just a quick question – I live in Australia, but my brother who lives in Europe is selling his business & wants to help out his other family members by donating some money to us. He is planning to send approx AUD$ 50k to me in Australia which I would love to use to pay something off my mortgage, but I just want to double check that the money is not taxable here before he sends it?
From what you said in your article, I assume its not taxable here, but any advice would be really helpful.
Thanks
Dave
I wish to gift my son $200,000 to help him buy a house. It is just a gift. I wish to show him from some authentic source that there is no gift duty payable in Australia.
Is there a limit on how much you can give at any one time?
I read that if you give more than 30k over 5 years you may get lower pension.
if i dont receive a pension do i need to worry about this? Does centerlink keep a record of money you have given and when it’s time to get your pension they penalize you for it?
eg. if i am 25 and give 50k away. when i reach 65 will my pension be less because i have given 50k away 40 years ago?
Dear All,
Thanks for the last lot of Questions.
1. Dave S- I cannot give you specific advise as I need to know your full situation. The article deals with general stuff not specifically linked to anyone. Look at some of the tax cases for futher clarification or if you are in Sydney you can come and see me.
2. Dave – Thanks for the question. An Authentic source would be the Australian TaxOffice http://www.ato.gov.au . You can also buy a book or look in a library for a book called the Australian Master Tax Guide, there is a section in their in relation to Gifts.
3. Chung – You are talking about several issues here. I cannot comment on your pension. The article and questions relate around the fact as to whether you are giving a gift or receivng a gift and whether or not it attracts income tax. I think there are rules around giving away money that may affect centrelink benefits. You would be best contacting the centrelink offices for further clarification?
Kind Reagrds
Andrew Jeffers
CEO
Aussie Tax Time
aj@aussietaxtime.com
my mother wants to give us 100k ..if we use this to buy an investment property do we pay gift tax..cheers pete
I want to buy into my dads property,basically I want to buy in to pay off his mortgage. I want to buy halk of a 80 acre property, but subdivding it is proving difficult. is it possible to buy the property of him whole, then give him a gift of half the property?
its a hard one i know,
cheers
dan
Hi i was hoping to build a house on the back property of my partners parents house. They are pensioners and i was told that this would be considered a gift and any gift worth more then 10000 dollars gets a gift tax, but more importantly they would like to know how it would affect there pension as its there only income, does the property affect there assets in the eyes of centrelink?
I have the feeling that this article was written by an American. Americans tend to use a certain verb in a place, and Australian English uses another verb.
VERB: bring
hi,
i am belongs to India and i want to send money as gift to my brother, i want to know from you whether it is taxable their in Australia.
please advice me.
regards/ Pushpendra
Hi
I heard that you can get pension only if you have one property. If you transfer as gift the second invesment property to your children then what is all involved before you qualify for pension
Please advise
Hi there, if i recieve one off 150000 gift from friend to help pay my mortgage would i be required to pay tax on that 150000, because it is going on my house?.
regards
Thanks a lot, great list of case study answers – that’s very practical as the language is simple.
My wife regularly gets gifts sent to her from her country, as we both live in Australia now, and so far we haven’t paid any tax, from your list it seems we’re not commiting any crime. Good to know.
G’day, if this gives me the answere it’s a gr8 site so tvm! My ? is:
Mum is baout to enter an aged care facility. How do I reduce her assets for the accommodation bond?
Again, thank you sincerely.
Hi-I live in Australia and recently inherited 25k from my Grandfather’s estate. I want to give it all to my Mum. Am I taxed on my inheritance and will myself or my mother pay any gift tax?
Regards, Lindy
Hi there,
My mum has given me $1000 as a gift for my OE. I want to put it into my bank account but am weary that the ATO may query where a cash deposit of that size came from when it comes to EOFY. Is it as simple as telling them it was a gift or do I need to make some kind of record that it is a gift? My apologies if this is a silly question, I’ve only recently moved to Australia so don’t really know the rules with this sort of thing.
Thanks,
Marie
Hi,
Slightly offtopic
Im a small business owner and every now and then i give my clients gift cards. Are these tax deductible?
Thanks
Mark
My daughter has been renting my investment home. If I sell the property and give her my gains, will I be penalised later. I will be on an aged pension in 2 1/2 years. Thankyou
Hey there.
Sorry I have had some issues with the email not getting through but it has been rectified.
As usual this information is not specific and is of a general nature and I do not warrant this information is always 100%
OK lets start
17 . Bernadine – I think your question relates to the pension. Sorry check out centrelink to see. I do not know there rules.
16.Mark – Small gifts intended to generate business are tax deductible. Gifts given for work done and completed with no further intension of more business are not.
15. Marie – No Tax , keep a record , nothing to report unless asked.
14.Lindy – Read the article above, your answer is there.
13.Tia’s Mum – Several issues not the least centrelink. No tax issues here check out with centrelink and the aged care facility themselves. This is very off topic sorry.
11. Chris – Read the article the answer is there.
10.Kris – Another pension question. Please check with centrelink about how this affects the pension.
9. Pushpendra – Please read the article.
8. Linda – American?? Nope. I was educated under the Wyndham system in NSW at North Sydney Boys High School. Unfortunatety at that time spelling and grammer were not as important as in prior years. Please forgive my spelling and gramatical errors but be assured i am 100% aussie born and bred.
There are some good questions here so I suggest you read the article again for some answers and also unfortunately I do not know about the limits for centrelink but If I get some time I will look into it. It seems to be a hot topic.
Andrew Jeffers
CEO
Aussie Tax Time
http://www.aussietaxtime.com
aj@aussietaxtime.com
Hi Andrew,
I have a home loan with an offset account. My fiance (not de-facto) has a large sum of money – about $200K that she is considering putting into my offset account (to save on my non-deductible interest) and also reduce her interest which is taxed at the top marginal rate. We wil be married in about 12 months time.
Are there any tax implications in doing this? Will the bank/tax office question why $200K suddenly appeared in my account?
Steve
Answer is no. That is a great idea to reduce your loan. Another thing if you wanted to invest this money in property property or shares what you do is reduce your loan down by the $200k (as the interest is not tax deductible) and then get a NEW and SEPARATE line of credit on the house to be used for investing purposes and then this interest will be deductible.
Andrew Jeffers
CEO
Aussie Tax Time
http://www.aussietaxtime.com
aj@aussietaxtime.com
hi, one of my elderly clients has got some shares, which she is thinking of selling. we were talking about her will and all, and she has some family issues, now my question for her is, how much money can she give to her children per year, as she wants to give it away while still alive, and so she can still decide who gets what.
Mariaane
there is no gift tax issues here. PLease have a read of the other answers above.
You may have an issue with centrelink if the person is receiving benefits also you will have to pay capital gains tax if the shares were purchased after 19th September 1985
Thanks
Andrew Jeffers
CEO
Aussie Tax Time
http://www.aussietaxtime.com
aj@aussietaxtime.com
My daughter now lives & works overseas. Her ex-inlaws are moving to a retirement home & want to ‘gift’ (ie sell to her at 1/10th it’s true value) her their valuable home in recognition the support & help she gave them while she was married to their son.
Will any party have to pay gift tax? The home had never before been sold & is very old.
Thanks & cheers
My wife and I operate our own Super. Fund which is currently in Pension Mode. I understand that when she or I as the last Trustee dies the Fund reverts back to Accumulation Mode and becomes liable for Capital Gains Tax and then 15 % Tax on the balance before it is paid out to our beneficiaries. In order to minimise the Funds tax liability after the last Trustee dies are we able to sell part of the Super.Funds share portfolio each year and distribute the cash achieved to our children without us or them being taxed on this money, and if so, is there a maximum amount that can be given to each child each year.
Many thanks for an excellent article.
Found this website by accident when researching Gift Tax liability in Australia. Found it excellent.
Claire,
No Gift tax. But you will have a stamp duty issue. Stamp duty must be paid on the market or sale price whichever is greater.
Don,
1. Thanks – We really appreciate feedback and glad we could be of some help.
2. Really good question regarding the SMFS. To be honest we will have to get back to you on this.
Andrew Jeffers
CEO
Aussie Tax Time
http://www.aussietaxtime.com
aj@aussietaxtime.com
Hi… A friend wants to buy a house for the daughter . Would they first put the money in her account so she can pay it out and would that attract tax , the main question is if that money is gift taxed . Is recieving a house a gift tax issue .
Can a person recieve any amount of money as a gift and not be taxed , but the income earned of it is taxable income ?
Hi. My father wants to give me some money to start a business. If I pay back the money regularly is this considered an income for him and will either of us have to pay tax?
It was a big confusion for me that if there will be any gift we inherited from parents or relatives , whether I will have to pay tax for that. I have got a clear idea from the information you have provided here. I read in ATO website about tax on gifts , but was still confused about employer gifts and other stuff.
Hi Andrew,
Thanks for your article – very helpful!
You say that the only gifts that are taxable are ones which are, or could be construed as, payment for services rendered or regular, ongoing income. There would therefore be no cap on the quantity of money which could be gifted, tax-free to both parties, from one person to another on a single occasion when the gift is unrelated to work or regular income. Am I right? So there’s no difference tax-wise between a gift of $2 or $2,000,000.00?
Thank you for your ongoing help to everyone on this thread!
Hi, I am planning on buying my parents investment house off them in July, they are planning on gifting me a portion of the house, is there a $ limit how much they can gift before I am taxed? Does it affect them with CGT?
The family property was left to one sibling (due to a misunderstanding on the part of the deceased parent). All agreed that it really belonged to all but that the sibling would continue to live there and we wouldn’t pursue legal changes. Now that it’s being sold 20 years later, still just under her name, is there gift tax on the splitting of the proceeds? I’m guessing from the article it’s no, but wanted to check.
My parents who are foreigners are intending to purchase a property under FRIB. My Husband and i will be living in this purchase property, in return we will be paying a weekly house maintanece fee back to them. At the end of 3 years they would like to give this property to us as a gift. They would peroidically be coming to Australia to stay & spend time with their grandkid and use this property as their place of residence. Will there be any CGT, Land Tax… tax of anykind applicable to any of the parties involved.
Hello,
It’s been a while since I got online but I will try and help out where I can.
27. Annette – There is no gift Tax
28. Not really if you pay him back a loan. If you pay interest on the loan then you may be able to claim it as a deduction and then he claims it as interest. Either way write make a loan agreement with the key terms.
29. Irene – Glad we helped. Small gifts from employers generally do not have tax. Other gifts may have fringe benefits tax.
30. Hi Julie – Thanks for the comments, I really appreciate it. To answer your question no difference between $2 and $2m.
31. Kristy – If they give you a discount on acquisition then they will have to pay CGT on a fair market value. If the property was bought prior to Sep 1985 then probably no CGT. Also you may have to pay stamp duty on the full fair market value.
32. Mary – No gift tax
33. Livvy – Ok if they buy the house and I assume this is brand new house then you need to be careful with paying them money even if it is for maintenance. If they intend to make tax deductions for the property then they will be assessed at full market rent even though you are only paying them a small payment.
If they give it to you after 3 year then they will effectively be making a sale to you and there may be CGT. Also if they buy the house without intending to live in it then it is NOT their primary place of residence and not able to claim the main residence exemption.
They should just give you money and you buy the house to live in. Money to you is a gift and then you own the house and then you et the primary residence exemption.
Not sure abut Land Tax.
Andrew Jeffers
CEO
Aussie Tax Time
http://www.aussietaxtime.com
aj@aussietaxtime.com
If you want to get on my database then please send me an email with the subject line – Email list.
Also we are always looking for new clients. As part of me answering questions for free if you would return the favour and tell people about this site and about Aussie Tax Time. Please join our facebook site http://www.facebook.com/aussie.tax.time as a fan and also out twitter account is http://twitter.com/aussietaxtime
Many Thanks
AJ
Hi currently my mother has her own superannuation fund. She currently doesn’t receive a pension from centrelink. She wants to Gift us 200, 000. ( 100k each for my brother and me ) to buy a house. If this gift lowers her overall assets would this affect her in getting a centrelink pension. Are there any tax liabilities for my brother and myself in receiving such a gift ??
Thx for your time
bart
I live with my elderly parents and we have discussed signing the house over to my name. I am on a disability pension Will i have to pay tax?
Hi my brother and I have both contributed equally on an investment property. Given the current market condition, he is inclined to sell the property whereas I prefer to hold onto the property for a bit longer. As an incentive for me to agree to sell, he has offered me an additional sum of $20,000.
If was to accept the offer, what would be my tax obligation in relation to the $20,000?
Regards, Ben
Hi, my brother in law and wife recently split up. Very soon after the split he found that their business ownership has been transfered to his mother in laws name. On top of loosing his business is he now going to be liable for taxes for “gifting” his business to his mother in law?
Hello,
35 – Bart not sure you need to c all centrelink
36 – Dave, If it is the primary residence then probably no tax.
37 – Ben , you must be carefull here. Send me an email to aj@aussietaxtime.com
38 – Karen there are many issues here. Is the business a company? It is a sole trader, partnership? I cannot answer this without more details. Send me an email to aj@aussietaxtime.com
AJ
Hi Andrew,
Thanks for the great article, it was surprisingly difficult to find info about this on the ATO website and you have been very clear and helpful. I am trying to find out more about NEXUS. My husband and I have a friend who is also a work colleague and he has offered us a gift towards our mortgage, is this going to be income, since we have some work-related relationship? How can I find out more about this definition?
Thanks
Ruth
Hi Ruth,
Thanks glad we could help. Ok the Nexus only goes so far as employer / employee relationship.
If your friend is a co-worker and not the person paying your salary and the gift has absolutely nothing to do with work ( like they gave you a new TV to work their shift over the easter break) then it would be tough to establish an employment relationship.
The nexus test is really there to say ” did this person get a gift from me that should have been wages and hence taxable ? ”
Andrew Jeffers
CEO
Aussie Tax Time
http://www.aussietaxtime.com
aj@aussietaxtime.com
Hi AJ, thanks for assistance.
One question. My grandfather would like to give $400,000 to his daughter. Nexus would consider a gift as far as I am concerned and she would not be liable for tax.
Is my grandfather liable for tax though? If over 13000, is there a tax to be paid?
Only thing I cannot seem to get clarified anywhere.
Thanks
Jo
Hi Jo
No employee nexus. No Tax
You are only liable for tax if you may money auch as working for it , getting money from investments or selling assets.
AJ
Hi,
My mother is an aged pensioner and owns her home which is in a very run-down condition and needs to be demolished. She has no cash and I would like to help her out. Can I buy her a house in her name without it affecting her pension and would there be any gift taxes payable? Would there be any gift taxes if she gives me her house to either sell or redevelop?
Thanks,
Michelle
Hi Andrew,
Great site! My question is about inherited family homes; if my parents had both passed on & left 2 homes, one for me & one my brother, both built prior to 1985……. I have been told we cannot keep them as an investment each (as we own our own homes) without paying CGT- 30% market value? but will be forced to sell them within 2 years to evade this CGT. Is this correct? My folks are very worried that we cannot keep the homes they built so well without some penalty. Is there a trust that we could set up to protect us from the CGT?
Thnx David
My mother will be getting a compensation payment for pain and suffering, she wants to give me 100 thousand to pay of my home where we both live. Will she have to pay gift tax, i realise there may be some problems with centrelink reducing her pension. I am also on a carers pension i look after her full time.
Hi Andrew,
My wife’s family want to send some money from overseas each year for the next couple of years to help pay my wife’s daughters university and living expenses.
The money would come to us (and they have already sent $2000 via my wife’s friend), probably a few thousand every few months time.
We are giving her daughter $1000 to help her expenses each month (from my pay) and then we were going to put any money that comes in from my wife’s family in bank for our use – but am unsure if we will be taxed on it or not?
Do you think this would be taxable? Is there a maximum amount they can send each year before it is taxable?
Thanks,
Brian.
Hi
I have shares of more than $10k. Can I transfer them to my daughter as gift or I need to pay CGT before transfer. Is there any way to minimize the CGT?
when a employer provides christmas gift to its employee ,is there any deduction???if yes how division 70 of ITAA 1997 support it???
I am an executor of an estate where the deceased did not leave anything to his son due to a dispute. The beneficiaries i.e. his brother and sister want to gift 65% of the estate (i.e. in excess of $400K) to the son. From what I have read taxation would not be applicable to the $400K gift. Can you please confirm?
Hi Andrew,
If someone were to pay me 4 mil directly into my bank account whether he be from Australia or not as a gift to start up my own business, I wouldn’t be taxed either?
I develop an app in my spare time. I put it up for free. I have a paypal donate or equivalent on my webpage. A nexus exists? I am required to declare as income not as a gift.
Correct?
my sister-in -law may be getting $50,000 from her in-laws living in Tonga as they sold their family property. I believe that there is no tax to be paid on gifts received. Is this correct? I am just a little bit confused as the Tax Guide says: “Where the activities of the recipient of a gift are of such a nature and exent that the receiptient is carrying on a business, the gift is assessible” My sister in law has her own business, does that mean that all gifts received are taxable??
Just need clarification
Hi Andrew,
Your site is very helpful. I live here in Australia and periodically send money overseas to my immediate relatives (residing in another country). Can I claim it as a form of donation/tax deductible?
Regards,
Lito
Hello All
54. No you cannot claim it for anything unless your relatives are a registered charity and they qualify as a deductible gift recipient.
53. It needs to be related to the business for their to be tax. Does she work for the inlaws in Tonga then maybe there is tax if it is a Gift UNRELATED to work then usually no Tax.
52. Richard – Yes a nexus exists. Even though you call it a donation it is still money received for providing the app but on the flip side you can claim the cost of developeing the app
51. No and if you start a company it can be considered as either equity or a loan. If you want to know more about starting a company email me.
50. No tax
49. There is a break for one off gifts to employees. If it is under a certain limit then there is no FBT as long as it is infrequent. Also do you mean division 7A Division 70 relates to trading stock? Div 7A relates to loans to related parties like directors instead of paying wages.
48. Generally you will need to pay CGT
47. No that is fine even though there are regular payments it is NOT related to a Job or employment.
46.There is NO Such thing as gift tax.
45. David – Thanx – OK if you get the homes they are pre 85 assets so I do not think there will be CGT however when you get them it is a change of ownership which triggers a CGT event so the clock will start ticking on you for CGT when you end up selling them. OK so the folks have had them for 25 years say market value today is $500k you get them and then you sell them in 25 years for $1m then you would pay CGT on $500k ie the time you had them….. I am not 100% sure but in general this is how the prvision operates.
44.Sorry I do not know about the pension restrictions.
AJ
Related to question 19, if I am in the process of obtaining a home loan, do I have to sell existing shares first, repay and reborrow as a separate line of credit and repurchase the shares to claim tax benefits?
If I already have cash in the offset account, can I repay a similar amount to my share portfolio, draw a new/separate line of credit without selling off my existing shares?
Cheers,
Ken
My son has paid rent and lived in a property I own for the past 12 years. He also worked in a small family business with me until 12 months ago. He is now on a reasonable income and can afford to purchase his own property. Would there be any tax implications if I were to gift him a portion of the property he is currently in, allowing him to borrow less?
I am looking at buying my first house and therefore I am eligible for the first home owners Stamp Duty Exception for purchases below $500,000. The house I am looking at is in the $580,000 range. My question is, is it legal and tax free to “gift” the vendor $80,000 and then buy the house for $500,000, hence avoiding the Stamp Duty? I would save almost $20,000.
Hello Again
56 – Kenneth the issue is this. You can claim a tax deduction for interest when you borrow money to produce assessable income. The cleaner it is the better. I reccomdent to ALL my clients if you are going to use an offset account then use it either soley for personal use or for investment / business use or get a different line of credit for each.
In the strictest sense if you do not sell the shares and use them to borrow against and then put the money you borrowed into your family home then you have not used the money for an income producing activity and then interest would not be deductible.
If you sell your shares remember that you may have a capital gains tax issue.
57 – OK so he is going to buy the house he has been renting from you. Remember the rent he has been paying you should be taxed in your hands. Also good point to note that if he is paying under market rent you could be assessable on FULL market rent. So back to the question there is NO gift tax but if you are transferring the house to him you could incur CGT.
Andrew Jeffers
CEO
Aussie Tax Time
http://www.aussietaxtime.com
aj@aussietaxtime.com
57 -
Hi Andrew,
Thanks for your posts and advice, have already passed on your details to friends and co-workers with similar questions above.
If you could please help with my enquiry:
My mother owns her primary place of residence (no mortgage) she also has an investment property which she purchased for $260K. She wished to transfer, gift, whatever you want to call it into my name. I have searched and can not find any answers.
What is the best way without paying anything to just simply transfer the house to my name whilst she is still alive. I also have a mortgage on my own property and wish to retain mums investment property as a IP still and not sell the property at all. Will I also be able to transfer it to my children and so forth?
Cheers,
Thanks heaps.
Ash
Quite informative article and Q&A.
Gift from parents are tax free in Australia is my understanding .
Is Australia having any rules covering money transfer from abroad even though it is from parents as gift ?
I would appriciate your views. I am an Indian; my son lives/works in Australia and I would like to gift him from my savings.
Regards
Nirmal
Hi. Great Article. Just wondering, my dad used to send me money from overseas while I was a student to help me pay for my rent/bills/cost of living, etc. Mind you, this wasn’t a sort of ‘once-off’ gift as he made regular monthly deposits into my account. I was also working casually at the time so the burden wouldn’t be entirely his. Is the money that he was sending considered taxable? It wasn’t so much of a ‘gift’ as it was an ‘allowance’.
Hello Andrew.
My wife is currently not an Australian resident (in UK) but is applying for australian residency soon with me as her sponsor. Her mother wants to give her $400,000 to buy a house in australia. Is there tax if she comes to australia with this money… and is there tax if she recieves it once resident there? Also are there any time limits for bringing the money to an australian account (for example, she has a certain amount of time to transfer it without being taxed)
Thank you
t
Hi Andrew,
Your blog is very helpful here.
My parents they live overseas and they have a house in Australia since 1998 and me and my brother used to live there. Now my parents want to give the house to me, if the house transfer to my name, will there be tax or stamp duty (current value approx $800K)? Then I will keep it as investment and rent it out.
Thank you
Budi
Hi Andrew,
Continue from Q64.
What if the house title transfer to my name and report under $500 so that I get my first home owner grant and I dont need to pay stamp duty. Will that be legal?
Thank you
Hi Andrew,
I am 72 years old and still in fulltime employment. I want to sell my house to my girl friend for the amount owing on the mortgage ($50,000). Do I have to pay Gift or Capital Gains Tax? I built the house myself from 1989-1996.
Thank you so much.
Bryan.
Hi Andrew,
I own a land in India which was bought in 1991 by my dad in my name. Currenlty i a citizen of ausstralia, if i sell that land in india and get the money here , do i have to pay any CGT on that.
On the other hand if my dad sells the land which he owns and sends me the money, are there any tax issue pertaining to this ?
Thank you.
Prashant: This is your property as it is in your name regardless of who paid for it. There is CGT to pay.
Hi Andrew.
My nanna, has recently sold her house because she had to be moved into a nursing home.
As a part of this i received $50,000, do i need to pay gift tax on this.
Any help would be greatly appreciated
Hi Andrew,
Thanks – you just saved me countless hours wading through the Tax Pack and the ATO’s website (gibberish – all of it!).
Feeling very envious of all these commenters with wealthy parents gifting them enough cash to purchase the house of their dreams!
I was “gifted” $40k from my mother on her deathbed to cover funeral and legal costs because she knew her husband was going to contest the will (of which he was left half her wealth).
At least I don’t have to declare and pay tax on the 40k simply because it is in my name and not in the Estate. Give it all up in a heartbeat to have my mum back of course!
Thanks again
Cassandra
Copy that(above). Great thread. But I still dont know how to use the word nexus in a sentence !
Blurring the lines with the nexus thing…..my boss wants to give me a large cash wedding present. Does it ‘look’ different if the money comes from him personally or the company ?
Weddings being a once in a lifetime event (maybe) – surely the ATO would not consider this income ?
Thanks for any info….
are there comments from no 60 on anywhere
Hi
I am an australian citizen. My dad who lives overseas and not an australian is selling one of his property overseas and wants to gift me approx 2 million one off. Is it possible to do a bank transfer of this huge amount from an overseas account to my local account? Any tax implications?
My mum is selling her home. She wants to give me the money as a gift and i want to use the money to pay off my mortgage. Do i need to pay tax on the money she gives me????
Hi Andrew,
My son and myself both are working and both are tax payers.My son asked me that dad, i could not save money and i want to give you $1000 per month and u give me back that amount after 2 years.Is that ok AJ.
your advice will be appriciated.
Kulwant
Dear Sir
I want give a car as a gift to my daughter. I just want to know do I have to pay any tax on the car when I transfer the car into my daughter’s name
Thanks
C. Prasad
Dear Sir
You answers are very good
Thanks
C. Prasad
Hi Andrew, I own a property overseas which I bought in 1995 prior to migrating to Australia in 1998. I am thinking of selling this property and plan to invest the money in property in Australia as well as to pay a part of the mortgage. Do I have to pay any taxes when I bring the money here? The amount will be around $150,000.
Thanks, Peter
thanx