Private ruling: Gift from family
Date of advice: 25 September 2017
Published: February 2018
Ruling period: Year ended 30 June 2018
Date scheme commenced: 1 July 2017

Ruling: Q1: Is the one-off payment from your family member assessable income? | A1: No Subsection 6-5(2) of the Income Tax Assessment Act 1997 provides that the assessable income of an Australian resident includes ordinary income derived directly or indirectly from all sources, whether in or out of Australia, during the income year. Taxation Ruling TR 2005/13 provides principles relevant to the determination of whether the receipt of money constitutes a gift. In your situation, you will receive a one-off payment from your family members which you will use to purchase a house to live in. The payment will be made to you voluntarily and not as a result of any services that you performed. Accordingly the one-off payment that you will receive is not required to be included in your assessable income.

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. You will be receiving over $200,000 from a family member. The payment will be a one-off payment. There is no employment relationship between you and the family member, and the gift is not in exchange for labour or property.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subsection 6-5(2)