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Edited version of private advice
Authorisation Number: 1052042306901
Date of advice: 14 October 2022
Ruling
Subject: Rental - income - domestic arrangement
Question
Are the payments you received from your parents' for residing in your property assessable income?
Answer
No.
The arrangement you have with your parents is a domestic arrangement not giving rise to the derivation of assessable income.
This ruling applies for the following period:
Year ended 30 June 20xx
The scheme commences on:
1 July 20xx
Relevant facts and circumstances
Your parents moved to Australia from overseas and have permanent resident status.
Your parents are not currently eligible for an Australian pension.
You support your parents financially by paying their housing related costs, medical insurance, car insurance, car servicing, mobile phone bills and home internet bill.
Until 20xx your parents were renting privately. However, they were concerned that rents were increasing, and they wouldn't be able to afford the increased rent without you increasing your financial support.
In 20xx, you bought a property for your parents to live in. By agreement with your parents, they make a monthly contribution towards your costs associated with purchasing and maintaining the property.
Your outgoings in providing your parents with accommodation exceed the contribution towards these expenses that you receive from your parents.
For two months of 20xx, you told your parents they did not need to make any contribution towards their accommodation expenses as you had received a bonus from your employment.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 6-5.