Private ruling: Money deposited into bank account
Published: March 2014
Ruling period: Year ending 30 June 2014
Date scheme commenced: 1 July 2013

Ruling: Q1: Does the money deposited into your bank account by a relative form part of your assessable income? | A1: No.

Relevant facts and circumstances: A relative transferred money from their bank account in another country into your bank account in Australia. The money will be used as part of their migration application fee.

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

Reasons for decision: Summary: 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. 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 money deposited into your bank account was not received for rendering personal services, nor was it income from property or income from carrying on a business. The money was simply deposited into your bank account to be held and used for the benefit of your relative. Therefore, you are not assessable on the money deposited into your bank account by your relative which will be used as part of their migration application fee.