Questions about free rent to friends in PPOR for one year

Hi guys,
I got a question about free rent a room to my friends for one year. They didn’t pay anything ( including rent, bill, food) and they usually eat outside. Recently, they would like me to have a paper prove said they are living in my house with zero payment. They will give the prove to government. My question is what is the relationship between us? Is that tenant? Boarder or lodger? I did not make any profits. But will it generate GST issues, other tax issue or legal issues if they said they live in our house for one year? This house is a PPOR and we have been living here since we bought it until now.

 

You're a good friend to allow them to use your internet/water/electricity/roof for 12months without asking anything in return, why is it they need documentation to prove this?

 

In Ye v Fung [2006] NSWSC 243 the guy claimed that he was defacto spouse after the death of the other - I forget who was who. Tried to make a claim on the deceased estate.

All sorts of claims are possible.

 

They will buy their first property to get the subsidy government. And they need to prove that they live in a place that not owned by them

 

Thank you so much. I will look for that case cause I am not sure whether can be used in my case

 

I think it is incorrect to even use the term ‘free rent’.

They were staying with you as visitors/friends not actually renting or boarding.

 

Thank you for your reply. Do you think there will be GST issues if my friends staying with me?

 

No.

 

thax

 

You are free to offer use of your home as you wish and it has no impacts for tax. However for legal reasons it may be wise to have a written agreement that confirms that nothing is being charged excepting some minor and occasional private contributions to costs from time to time. It should indicate you are providing free rooming to assist them for a temporary period and indicate the estimated end date.

I believe the modern words for this is "couch-surfing" but in my old aussie interpretation it could be called "free-loading".

 

If they have registered the address on their drivers licenses or on the electoral role, that should be sufficient proof of address, and a title search will prove that they do not own the property.