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Daniela P.
Daniela P.
Taren Point, NSW
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We have been trying to find out if there is a limit to how much we can gift our eldest son and remain tax free. We have been getting mixed messages as it is a significant amount, is there a limit… thanks in advance

2 weeks ago

Responses

Hi Daniela,

There is no tax on gifting to any level in Australia.

Depending on what the money has been doing in the past, you could have tax on selling assets to provide the cash.

I would suggest you spend some time with your accountant, financial planner and maybe a finance broker (if to help your son with financing) to make sure your plans are appropriate for YOUR situation.

Todd.

Comments

Thanks Todd. The gift is not coming from a sale of any asset so no tax, that's good.

Thanks for taking the time
Daniela

You should check to see if it affects you in relation to any government benefits because Centrelink, for instance, may put limits on what it will permit.

Comments

Hi Daniela, just to clarify Patricks statement:

- Centrelink cannot stop you from giving money away, but they have limits on what they will accept you have gifted for the purposes of assessing your entitlement to benefits.

- so what Centrelink will do is assess your entitlement to benefits based on your assets from funds you have given away and the income it would have generated for you if it was still yours.

https://www.humanservices.gov.au/individuals/enablers/gifting

this will help you if you are currently receiving benefits.

cheers
BC

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