Private ruling: Assessable income - receipt of gift from family member
Date of advice: 18 December 2023
Published: 12 February 2024
Ruling period: Year ending 30 June 2024
Date scheme commenced: 1 July 2023

Ruling: Q1: Is the gift of money from a family member assessable to you? | A1: No.

Relevant facts and circumstances: You are a resident of Australia An overseas member of your family wishes to gift money to you of approximately AUD$XX. Your family member has provided XXX that the transfer of funds is a generous gift to their relative for whom they have deep affection for use at their discretion. The family member has provided XXX that characterises the nature of the transaction as a gift to you.

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

Reasons for decision: Summary: Subsection 6-5(2) of the Income Tax Assessment Act 1997 (ITAA 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. Ordinary income is income according to ordinary concepts. Ordinary income has generally been held to include three categories, namely, income from rendering personal services, income from property and income from carrying on a business. The documentation from your relative confirms that the payment to you is not income for personal services, income from property, or the carrying of a business. A personal gift received by an individual from family members, not related to any income-producing activity on the part of the individual, is not assessable income. Therefore, the gift of money from your family member is not assessable income under section 6-5 of the ITAA 1997. | Detailed Reasoning - Additional information: If you receive a gift from overseas you would not be in breach of any taxation rules. However, you should seek advice from the Australian Customs Service and Austrac for specific requirements concerning the transfer of cash from overseas.