Receiving gifts and bequests from abroad

By George Cochrane
Updated April 19 2017 - 9:43am, first published April 1 2017 - 10:49pm

My elderly mother, a citizen and resident of India, no connection with Australia, wishes to give about $6000 to each of my two sons by means of a bank transfer (SWIFT) to help with their university (HECS) debts. Both are citizens and residents of Australia, over 21, and have never received any kind of Centrelink payments. The elder one is now in full-time work and pays regular tax. The younger one has a small income from casual work and does not pay tax. (1) What are the Australian tax implications? (2) What sort of documentation will satisfy the ATO and perhaps the security establishment? (3) Can she repeat this next year if she is alive? (4) What if she dies and the money is paid as per her Indian will? S.M.

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