So I have an interesting situation. My goal is to purchase an investment property in the next 12 months, I work part time and as a result, have a pretty low (taxable) income stream. But I have a passive income from overseas, which is a monthly gift from my Aunt. Let's make it $500 to make calculations easier. I do not currently own any property and the eventual purchase would be rented out as an IP, I'd continue to live in a share-house to save money.
In the past, I have spoken with the ATO and since it is indeed a gift (I have no ownership or connection to the funds/account) I do not pay tax on it. But when I go to the banks and check my lending capacity, it does not factor in because, as a gift, it is seen as unreliable; "It might stop any day, you don't control it."
I can understand, but I've been getting it for 7 years and I am in constant communications with my Aunt, who is in no danger of losing her funds.
Anyway my point is, are there any (legal!) ways that I could convert this extra passive income to a taxable/reliable income that the banks would recognise?
I was thinking of giving it to a close relative who could then "pay" it back to me as a fee for my services as a labourer or something, for example. Any dangers?
Cheers.
PS; It is not an aunt, and that is not the real value, for confidentiality reasons.
In the past, I have spoken with the ATO and since it is indeed a gift (I have no ownership or connection to the funds/account) I do not pay tax on it. But when I go to the banks and check my lending capacity, it does not factor in because, as a gift, it is seen as unreliable; "It might stop any day, you don't control it."
I can understand, but I've been getting it for 7 years and I am in constant communications with my Aunt, who is in no danger of losing her funds.
Anyway my point is, are there any (legal!) ways that I could convert this extra passive income to a taxable/reliable income that the banks would recognise?
I was thinking of giving it to a close relative who could then "pay" it back to me as a fee for my services as a labourer or something, for example. Any dangers?
Cheers.
PS; It is not an aunt, and that is not the real value, for confidentiality reasons.