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Payment by family members for "board and lodging"

Discussion in 'Accounting & Tax' started by Lambo, 17th Jul, 2015.

  1. Lambo

    Lambo Member

    Joined:
    15th Jul, 2015
    Posts:
    16
    Location:
    Brisbane
    Can someone explain to me how "board" and "lodging" differ from rent?

    From the ATO

    "Payment by family members of an amount for "board and lodging"

    17. Arrangements of this nature, whether the payment is said to be for board only or for lodging only or for both, are considered to be in the nature of domestic arrangements not giving rise to the derivation of assessable income by the recipient of the payments. It follows that the question of income tax deductions for losses and outgoings does not arise."


    I am considering renting a room in my ppor to my brother. Would it be tax free as he is family?
     
  2. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

    Joined:
    19th Jun, 2015
    Posts:
    1,241
    Location:
    NSW
    Rent scenario is covered by a residential lease.....boarding not so much. Rent has a bond to be paid and lodged with the rental bond board. Board & lodging has more of an element of maybe you get meals / washing done or at least contribute to the cost of these things.


    Yes, I imagine so.