Private ruling: Assessable income
Date of advice: 11 January 2019
Published: April 2019
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Is a cash gift from your parents considered assessable income? | A1: No. Money received (gifted) from friends and family (resident or non-resident) is not considered income for the purposes of subsection 6-5(2) of the Income Tax Assessment Act 1997 (ITAA 1997). This is because you are being given (gifted) the money and not being paid for services provided. The gift of money is considered a personal agreement between yourself and the person who gives you the money. It is also advised that you contact the Australian Transaction Reports and Analysis Centre (AUSTRAC) to declare the money received. For further information on Amounts Not Included as Income, please visit ato.gov.au and search for QC 31936.

Relevant facts and circumstances: You are both Australian residents for taxation purposes. Your parents live abroad and wish to gift you $XXX Australian Dollars.

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