When Is a Gift Really a Gift? The Bank of Mum and Dad

For many Australians trying to enter the property market, Mum and Dad have quietly become the biggest lender no one talks about. They might act as guarantors, let their kids live at home rent-free while saving, or simply hand over a cheque with the words: “We want to help. Here’s some money towards your home.” As a mortgage broker, I’ve worked with plenty of clients whose parents did exactly that no loan agreement, no repayment schedule, no strings attached. But I’ve also seen how the story can take an unexpected turn years later.

The Twist Nobody Plans For

The child is now financially comfortable and says, “My parents helped me when I needed it. Now I want to give something back.”

It’s a generous instinct. But it raises an odd question: does paying your parents back mean the original gift was secretly a loan all along?
Not necessarily.

A Gift Today, Gratitude Tomorrow

There’s a real difference between money handed over with no obligation, and money handed over with an unspoken understanding that it must one day be repaid.

I’ve seen this play out with clients firsthand. What started as an unconditional gift stayed a gift years later, better circumstances simply gave them the chance to return the favour. The original arrangement never changed; only their ability to be generous in return did.
That distinction matters more than it might seem.

If It’s a Loan, Call It a Loan

If everyone understood from day one that the money would eventually be repaid, it shouldn’t be presented to a lender as a gift.

Depending on the lender and circumstances, you may need to prove the funds are genuinely non-repayable, a gift letter, a declaration, sometimes a statutory declaration.
There’s a good reason lender ask.

If a borrower is quietly on the hook to repay a large sum to their parents, that’s real pressure on their household finances, pressure the lender needs to see when assessing whether the borrower can meet their commitments. Dressing up a loan as a gift to help an application scrape through isn’t just risky. Transparency matters for the lender, and for the family.

The Indian Family Perspective

In many Indian families, financial support across generations isn’t a transaction it’s woven into tradition and a sense of duty.

Parents help fund an education, a wedding, a business, a first home. Later, adult children look for ways to return that support. Because none of this is treated as formal, the line between “gift” and “loan” can blur without anyone meaning it to.

A parent might say, plainly: “Take it. Buy your home. You don’t have to pay us back.”
The child may still want to repay them one day. That’s a personal desire not the same thing as an agreed obligation. It can feel strangely formal to spell out terms between family, but one honest question cuts through the ambiguity:

Is this genuinely a gift, or is repayment expected?

Can Mum and Dad Gift Your 5% Deposit?
Family assistance can often contribute toward a deposit but whether it counts toward genuine savings requirements depends on the lender, the loan structure, and any government scheme involved.

If you’re eyeing the Australian Government 5% Deposit Scheme, don’t assume a gifted deposit automatically qualifies check the current requirements. Participating lenders still assess every application against their own criteria.

Australian Government 5% Deposit Scheme | Housing Australia

As a broker I can walk you through exactly how gifted funds and savings requirements apply to your situation.

Family Legacy
The Bank of Mum and Dad can give the next generation an extraordinary head start. But before any money changes hands, everyone should be on the same page: is this a gift or a loan, is repayment expected, and what does that mean for the home loan application?
Because sometimes legacy isn’t just about what parents leave behind.

It’s about helping the next generation move forward and perhaps, one day, watching that generosity find its way home again.

Roshika Chand is the Founder and Principal Mortgage Broker of Heirs & Legacy Co. and a Features Writer & Interviewer for Australian Indian Times.

Disclaimer: This article provides general information only and does not constitute financial, tax, legal or credit advice. Lending policies, eligibility criteria and government scheme requirements can change and vary between lenders. Seek advice from appropriately qualified professionals before making financial decisions.

Coffee Update – August 2026

Saving tax probably won’t make you rich. But none of that matters because there is one thing that unites Australians (and Indians) more than cricket, complaining about the weather and arguing over property prices: We Just Hate Paying the Damn Thing.
Tax laws have changed again. Apparently, Parliament decided you should suffer as a business owner. So, naturally Parliament has been sitting around a table drinking tea and concocting fresh ways to make running a business feel like attempting to reverse-park a V12 Lamborghini in a telephone box.

So, pour yourself a hot mug of coffee (still completely non-deductible, because of course it is) and let’s inspect the latest legislative disasters.
So, grab your coffee (still sadly not deductible unless you’re buying it for the office) and let’s dive into what changed this month.

The $20,000 Instant Asset Write-Off (Is Now Permanent)

In a rare, terrifying moment of sanity the Government has done something worthwhile. As promised in the budget, it has introduced legislation to make the $20,000 instant asset write-off permanent. Yes, permanently. I’ll give you a moment to recover from the shock.
If Parliament actually manages to pass it, it starts from 1 July 2026:

• You can write off eligible depreciating assets up to $20,000 instantly (instead of the laughable $1,000 limit they keep trying to drag us back to).
• The general small business pool threshold will also sit permanently at $20,000.
• They’ve also suspended the infamous ‘lock-out rule’ until 30 June 2027. (For those who don’t spend their weekends reading tax acts, this is the rule that banishes your business to the tax wasteland for five years if you dare opt out of simplified depreciation).

What does this mean to you? It means if you need a brand-new, power-packed piece of machinery for your business—say, an absurdly large hydraulic press or a heavy-duty trailer—you don’t have to spread the deduction over the next four decades. You buy it, you write it off, and you tell the ATO to jog on.

Loss Carry Back Returns

Remember when the world turned upside down and then back to front in 2020? The Government let companies carry back losses to get actual cash refunds on tax they’d paid in better times? Well, it’s back.

Legislation has been introduced to re-boot the ‘loss carry back’ scheme from 1 July 2026. If your company hit a bit of a snag and made a tax loss, you don’t just have to sit there staring at it like a broken-down supercar on the side of the Bruce Highway. You can carry that loss backwards and offset it against profits you paid tax on in the previous two income years.

The result? The ATO—a machine designed purely to suck money out of your bank account—might actually have to send some of it back. It’s like demanding a refund from a thief. Marvellous.

ATO Warning: Don’t Claim Your Dining Room

The ATO has launched a full-scale assault on business owners and employees claiming “occupancy expenses” (rent, mortgage interest, rates) because they occasionally answer an email while sitting in their underpants at the kitchen bench.
If you want to claim mortgage interest or rent on your home, the ATO says your space must be an actual, unassailable ‘place of business’. To prove this without getting dragged into an audit room and tortured, you must satisfy four strict rules:

• It must be clearly identifiable as a place of business (a desk covered in coffee mugs and tax bills in your bedroom don’t cut it).
• It cannot be readily capable of private or domestic use (if you can fold up your laptop and eat a microwave curry on the same surface, you lose).
• It is used exclusively or almost exclusively for business.
• It is used regularly for client or customer visits (unless your clients enjoy tripping over your dog on the way to the kettle, good luck).

If you are an employee, you also must prove your employer was so outrageously stingy they didn’t provide you with an alternative workplace at all. If you meet these brutal hurdles, you can claim a fraction of your expenses based on floor area and time. But be warned: the tax office is watching, and they have no sense of humor so don’t expect them to laugh at your hilarious excuse.

Property Manager Reports: A Minefield Of Errors

If you own investment property, you probably receive a nice, neat end-of-year summary from your property manager and hand it straight to your accountant. The ATO has publicly warned that these reports are frequently littered with mistakes. Apparently, they are about as accurate as undertaking surgery whilst being tickled.

The tax man’s hitlist of common property report errors includes:
• Capital expenses disguised as repairs: Fixing a tap is a repair; replacing a rotten balcony before a tenant falls off it is capital. You can’t deduct capital costs all at once.
• Grouped lump sums: Managers dumping $5,000 into a line item called “Maintenance” without explaining whether it was for a lightbulb or a new roof.
• Timing mismatches: Mixing up when expenses were actually incurred versus when the property manager got around to paying them.
• Private slip-ups: Smuggling personal expenses—like the owner’s weekend stay at the property—onto the ledger.

Don’t assume your property manager is a tax expert. They aren’t. Your accountant must inspect these reports with a fine-tooth comb before the ATO does.

Scammers Impersonating The ATO (and Doing a Worryingly Good Job)

As if the official ATO wasn’t scary enough, fake ones are now sending out phishing emails designed to steal your myGov credentials.
The latest scam email claims you have a “scheduled phone appointment with the ATO” and tells you to open an attached file to confirm or reschedule. That attachment leads to a fake myGov login page that looks utterly genuine—until it drains your passwords and personal security codes.

Remember The ATO Golden Rules — The ATO will NEVER:
• Email you an attachment containing a link to a myGov login page.
• Force you to access ATO services via unsolicited email links.
• Send you to a login page outside official .gov.au websites.
• Ask for your myGov password, username, or SMS codes via email.
If you receive one of these, do not click it. Do not open the attachment. Delete it, or call us immediately.

Final Coffee Sip (Because Lawyers Lack A Sense Of Humour)

This article contains general thoughts and observations only. It does not replace proper, tailored professional advice. Before you make any monumental financial decisions—or attempt to explain your unconventional tax strategies to the ATO—talk to tax agent first. It is infinitely cheaper than paying penalties.

Please, under no circumstances, attempt to:
• Sell your factory floor to buy physical gold;
• Declare your home dining room a sovereign international trade zone;
• Pay your staff in vintage wine; or
• Tell an ATO auditor that “this Coffee Update said it was fine.”
—Hitesh Mohanlal

No HIV Vaccine Yet—But There Are Many Ways to Prevent HIV

HIV affects people from many cultures and communities in Australia. Some people who were born overseas may find it difficult to access health information and services because of language and cultural barriers, cost, or unfamiliarity with Australia’s health system.
There is currently no vaccine for HIV. However, there are several highly effective ways to prevent HIV. You can choose the method—or combination of methods—that works best for you. HIV can be passed on through certain body fluids, including blood, semen, vaginal fluids and anal fluids. It can be prevented in the following ways.

Use condoms

Condoms help prevent HIV and many other sexually transmissible infections (STIs). They can also prevent pregnancy.

Condoms come in different sizes. Make sure you know what size fits you. Check the expiry date and make sure the packet is not damaged before use. Store condoms in a cool, dry place.

Use a new condom every time you have sex. Do not use two condoms at the same time because friction may cause them to break. Use a water-based lubricant with condoms.
You can buy condoms from pharmacies, supermarkets and online. You can also order free condoms from https://eccq.com.au/health/love-health/ or https://www.qc.org.au/wrapped-n-ready

Take PrEP before possible exposure to HIV

Pre-exposure prophylaxis, or PrEP, is medicine taken by an HIV-negative person before possible exposure to HIV. When taken correctly, PrEP is highly effective at preventing HIV.
PrEP does not prevent other STIs or pregnancy.

PrEP can be taken daily or, for some people, only around the time they have sex (on-demand PrEP). On-demand PrEP is not suitable for everyone. A doctor or authorised nurse practitioner can help you choose the safest option.

Some people have mild side effects when they start PrEP, such as nausea or headaches. Kidney problems are rare, and regular health checks help make sure PrEP remains safe for you.

Learn more at https://www.healthdirect.gov.au/Pre-exposure-prophylaxis-PrEP

Take PEP after possible exposure to HIV

Post-exposure prophylaxis, or PEP, is medicine that may prevent HIV after a possible exposure. You may need PEP if, for example:

• a condom broke or was not used during sex
• you shared injecting equipment
• you experienced sexual assault
• you had contact with blood that may contain HIV. PEP must be started within 72 hours of the possible exposure. The sooner you start, the better. PEP must be taken for 28 days.

You can ask for PEP at a sexual health clinic, a hospital emergency department, a Medicare Urgent Care Clinic or from a specially trained family doctor (a list can be found at https://ashm.org.au/prescriber-programs/find-a-prescriber/find-a-hiv-prep-prescriber/ ). Visit www.getpep.info to find a PEP service near you, or call 13 HEALTH on 13 43 25 84, 24 hours a day, 7 days a week.

PEP does not prevent other STIs or pregnancy. Some people experience temporary side effects such as nausea, headache, diarrhoea or vomiting.

HIV treatment prevents sexual transmission: U=U

HIV treatment is highly effective. A person living with HIV who takes their treatment as prescribed can reduce the amount of HIV in their blood to a level called “undetectable”, meaning that current tests cannot detect HIV in their blood.

When a person maintains an undetectable viral load, they cannot pass HIV to another person through sex. This is called Undetectable = Untransmittable, or U=U.
U=U protects sexual partners and helps people living with HIV stay healthy. Regular viral-load tests are important.

Use sterile injecting equipment

HIV can be passed on by sharing needles, syringes or other injecting equipment. Always use new, sterile equipment and do not share it with another person.
Needle and syringe programs (NSPs) provide sterile equipment, information and confidential support.

If you travel overseas for medical or dental treatment or cosmetic procedures, make sure that sterile medical equipment is used to prevent HIV transmission as some countries may not have the same strict infection-control and blood safety measures.
If you need an interpreter, you can ask the health service to arrange one for you.

Stay safe and protect yourself from HIV!

Our bilingual community health workers can provide information and support in your language.

For more information, contact:
Email: [email protected]
Information in different languages is available at:
www.eccq.com.au/bbv