I am currently studying in university and my mother gave me two large sum payments for purchasing electronics and monthly utility fee bills, which goes over the tax free threshold. She and I are both not working, so would I need to pay tax - since it is some sort of financial injection into my account?
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Congratulations on taking the step to further your knowledge through study. It is also a positive that your mum is willing to help support you through this education and financial life decision even with both of you not working.
When your mum chooses to gift you money to purchase electronics and support you with monthly utility payments, albeit it may be above the minimum tax free threshold, it doesn’t in fact affect you, nor do you have to pay tax on the money gifted.
Without knowing the full extent of personal information a few notes;
- depending on the age of your mother and any other government benefits she may be in receipt of, gifting rules over the next 5 years could be something that needs to be considered though.
- If you are also in receipt of government benefits (too many to assume here) you will also need to consider how the gifts may impact your payments. i.e. Centrelink will often review your bank records and query the income flowing through your bank accounts and require you to substantiate regular payments
With all financial decisions big or small, it is always best to consult a tax / financial professional, specifically in the event of unknown factors and repercussions on all parties.
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