ASK THE EXPERT
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.
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.