Maximum tax-free gift?

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From: Anonymous


Hi all,

Just wondering if anyone knows what the maximum amount of money you can gift to another person without incurring any tax here in Australia?

Thanks.
 
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Reply: 1
From: Anonymous


Damn! And I thought the money I got was mine to keep! How does it make sense to tax when someone made the money & paid tax on it, and then the money is taxed again when given to a relative?

How far would the ATO probe to investigate the source of funds? Basically the money I received was the proceeds of the sale of my parent's IP (no CGT paid), of which the funds to purchase it were originally transfered from abroad.

Sorry for posting anonymously, I know you guys hate it, but I'm a regular poster & wouldn't like to expose my identity this time around.
 
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Reply: 1.1
From: Dale Gatherum-Goss


Hi

Since you explain your reasoning, I will answer - this time.

In Oztralia, we have no gifting limits as far as I know. So, if you have $100m sitting idle in a bank account and decide to gift the lot there are no adverse tax consequences.

However, if you gift assets, you will trigger the ugly sisters of stamp duty and CGT.

BTW, Centrelink do have gifting rules to stop the pensioners from giving away all their assets and sponging off the government. It is $10k per annum, I belive.

I hope that this helps

Dale
 
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Reply: 1.1.1
From: Always Learning


Another good reason to use a trust? Ignoring the moral issue, if you have everything in a trust, you don't personally own anything, thus you can sponge of the government as much as you like.
<p>
<hr width="50%" color="pink">
<ul>

<li> Unless you change how you are, you'll always have what you've got.
<li> To have more than you've got, become more than you are.

</ul>
 
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Reply: 1.1.1.1
From: Duncan M




> Another good reason to use a trust? Ignoring the moral issue,
> if you have everything in a trust, you don't personally own
> anything, thus you can sponge of the government as much as you like.

Not quite, not without lying. They DO look through trusts to see who the
ultimate beneficiaries are.

Regards,

Duncan
 
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Reply: 1.1.1.1.1
From: Rixter ®


The down side of using a trust is that any income you receive from it being a benificary you have to declare and pay tax on it.
bye.gif

Happy Investing,
Rixter :)
 
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