Private ruling: Assessable income
Date of advice: 18 October 2023
Published: 27 November 2023
Ruling period: Year ending 30 June 2024 | Year ending 30 June 2025 | Year ending 30 June 2026
Date scheme commenced: 1 July 2023

Ruling: Q1: Is the money you receive from your parents assessable income? | A1: No. Based on the information provided to the Commissioner the regular payments you are receiving from your parents in Country Z over the next few years are not assessable income under Section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997). The payments are a gift from your parents to assist you in paying off your mortgage in Australia.

Relevant facts and circumstances: You and your partner purchased an apartment in a previous year. You and your partner own the property 50-50. You and your partner have a mortgage over the property. To assist you in paying the mortgage on the property your parents to gift you an amount each year for the next few years. Your parents are in Country Z and will transfer this money to you. You have an offset account which the money will be deposited into. Your parents sold a property in Country Z and want to assist their only child to pay the property off. Your parents have provided you with a written letter signed by both of them setting out their intention to transfer money to you every few months to pay off your loan in Australia. You do not have any assets overseas or any business. You are not a beneficiary of a foreign trust. The payments you will receive from your parents are not distributions from a foreign trust. Your parents do not have any assets or business in Australia.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 6-5