What is a gift from a taxation point of view? It is important to distinguish a gift from income. This is because there are no taxes on gifts, but there are on income. Rather than attempting to define a 'gift', the courts have described a gift as having the following characteristics and features: · there is a transfer of the beneficial interest in property, · the transfer is made voluntarily, · the transfer arises by way of benefaction, and · no material benefit or advantage is received by the giver by way of return. Paragraph 13 of TR 2005/13 https://www.ato.gov.au/law/view/document?Docid=TXR/TR200513/NAT/ATO/00001 See Private Binding Ruling Authorisation Number: 1011370948576 for an example of a lump sum gift as well as ongoing periodical gift of money which were both treated as non-assessable gifts RBA Content | Australian Taxation Office Note that tax definition may differ from the legal definition of a gift in instances such as bankruptcy.