Tax Question - Gift
 

Hello,

Boring I know but I was wondering if anyone could advise on this tax question, my parents gave us $10k back in December 2012 and now it's tax time I am wondering if we will have to pay tax on this gift...... the money went straight into our normal current account.

Re: Tax Question - Gift
 

Don't think so. If they gift you cash on a regular basis that you use to live on then yes but a one off cash gift my understanding is no tax payable. You ought to call the ATO and conform that though.

Re: Tax Question - Gift
 

It's not earned income and they probably paid their tax on it anyway. SWMBO got 60k in her auntie's will and that wasn't taxable. None of their business.

Re: Tax Question - Gift
 

Tax to be paid only on the interest on your account (if interest is paid on the account) - as per normal (the rest is, like Mike said, none of their business).

Re: Tax Question - Gift
 

Yeah its like winning lotto. Non taxable.

Re: Tax Question - Gift
 

Yippee! About to get a chunk from the UK from the sale of Dad's house.

Re: Tax Question - Gift
 

With the current low interest rates even for Centrelink "deeming" purposes you'd need hundreds of thousands of dollars to earn enough interest to take your income out of the "free" zone.

Re: Tax Question - Gift
 

I must admit we spent it so fast there was no chance of interest being earned! Thanks for all the replies, I thought it was the case but thought I had better confirm.