Interest Status when Borrowing from Family

Hello,
I am curious if someone borrows money from my wife/father/brother/cousin etc and pays them interest is this something that needs to be declared by the person receiving interest? Ive read Terry's tax tip about setting up a family loan to buy an investment however im talking more about something where no one claims an expense.

I have also heard something about if its your wife its rather hard to get money paid between you to count as income/expense (presumably to avoid high income partner income shifting).

Cheers

 

If its for ppor, the interest wont be deductible.

 

yes as it is assessable income

There is a presumption that spouses don't contract with each other but they can and this can be done with a written agreement