ASK THE EX­PERT

The Sunday Times - - YOUR MONEY -

Q

I read with in­ter­est the ar­ti­cle about par­ents putting money in a child’s off­set ac­count to make it eas­ier for her to pay off her mort­gage. Would the ATO view this as a gift and tax it ac­cord­ingly.

A

There is no tax­a­tion on gifts in Aus­tralia, but if you are on some form of in­come sup­port Cen­tre­link would treat loans or gifts as a de­prived as­set and they would be sub­ject to the deem­ing rules. If you re­ceive the age pen­sion now, lend­ing money to your chil­dren should not af­fect what you are re­ceiv­ing, be­cause the ac­tual sum will be as­sessed if you have it, and the loan would be as­sessed in the same way.

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