← Guides / Australia

Australia Gift Tax Guide

Australian tax rules for gifts. The guide covers: the no gift tax in Australia — Australia does NOT impose the 'gift tax' (the 'donations tax' or the 'inheritance tax') on the 'gifts' between the 'individuals' (the 'gift tax' was abolished in Australia in 1978); the 'gifts' are generally NOT subject to the 'tax' for the 'recipient' (the 'recipient' does NOT include the 'gift' in the 'assessable income', unless the 'gift' is received in the 'business context' or the 'employment context'); the CGT on gifts — the 'gift' of the 'CGT asset' is the 'CGT event A1' (the 'disposal of the asset for no consideration') under the 'Section 104-10 of the ITAA 1997'; the 'donor' (the 'giver') is deemed to have disposed of the 'asset' at the 'market value' (the 'market value substitution rule' under the 'Section 116-30 of the ITAA 1997'); the 'donor' may have the 'capital gain' if the 'market value' exceeds the 'cost base'; the 'donor' may have the 'capital loss' if the 'market value' is below the 'cost base' (but the 'capital loss' from the 'gift' to the 'related parties' may be 'deferred' under the 'anti-avoidance rules'); the 'recipient' acquires the 'asset' at the 'market value' (the 'cost base' for the future 'CGT' calculation); the CGT rollover for the gifts to the charities — the 'donor' may claim the 'CGT rollover' (the 'CGT exemption' or the 'CGT rollover') for the 'gift of the asset' to the 'DGR' (the 'deductible gift recipient') — the 'donor' can disregard the 'capital gain' on the 'gift' of the 'asset' to the 'DGR' under the 'Section 118-60 of the ITAA 1997'; the 'gift of the asset' must be the 'property' that was 'acquired by the donor at least 12 months before the gift'; the stamp duty on the gifts of the real property — the 'transfer duty' (the 'stamp duty') applies to the 'gifts of the real property' (the 'land' and the 'real estate') in Australia; the 'stamp duty' is calculated on the 'market value' of the 'property' (NOT the 'consideration') for the 'gift transfers'; the 'stamp duty' rates vary by the 'state' (the 'ACT', 'NSW', 'NT', 'QLD', 'SA', 'TAS', 'VIC', 'WA') — the 'stamp duty' for the 'gifts' may be the 'full rate' (the 'ad valorem rate') or the 'concessional rate' for the 'related parties' (the 'spouse', the 'de facto partner', the 'family member') in some states; the FBT on the employer-provided gifts — the 'employer-provided gifts' to the 'employees' (the 'property fringe benefits') may be subject to the 'FBT' (the 'fringe benefits tax') at the 'FBT rate' of 47%; the 'minor benefits exemption' (the '$300 minor benefit exemption') may apply if the 'gift' is the 'property benefit' of less than $300 (the 'otherwise deductible rule' and the 'minor benefit exemption' under the 'FBTAA 1986'); the 'Christmas gifts' and the 'birthday gifts' from the 'employer' to the 'employee' may be 'exempt from the FBT' if the 'value' is below $300 and the 'gift' is 'infrequent' (the 'otherwise deductible' and the 'minor benefit' conditions).

CGT on Gifts

  • Deemed disposal at market value: The 'gift' of the 'CGT asset' is the 'CGT event A1' — the 'donor' (the 'giver') is deemed to have disposed of the 'asset' at the 'market value' (the 'market value substitution rule'). The 'capital gain' or the 'capital loss' is calculated as the 'market value' minus the 'cost base'.
  • CGT rollover for DGR gifts: The 'donor' may disregard the 'capital gain' on the 'gift of the asset' to the 'DGR' (the 'deductible gift recipient'). The 'asset' must be acquired at least 12 months before the 'gift'. The 'CGT rollover' is available under the 'Section 118-60 of the ITAA 1997'.
  • Gift to the spouse or the family: The 'gift' to the 'spouse' or the 'family member' may be the 'CGT event A1' — the 'donor' has the 'capital gain' if the 'market value' exceeds the 'cost base'. The 'CGT discount' (the '50% CGT discount') may apply if the 'asset' was held for at least 12 months. The 'CGT rollover' on the 'marriage breakdown' may apply (the 'CGT rollover for the divorce').

For the CGT discount and the rollover relief, see our Capital Gains Tax Guide →.

Stamp Duty on Gift Transfers

  • State stamp duty: The 'transfer duty' (the 'stamp duty') is imposed by the 'state governments' on the 'gift transfers' of the 'real property'. The 'duty' is calculated on the 'market value' of the 'property' (NOT the 'consideration').
  • Exemptions: Some states provide the 'stamp duty exemption' or the 'concessional rate' for the 'gift transfers' between the 'spouses' (the 'married couples' and the 'de facto partners') and the 'direct family members' (the 'parents' and the 'children'). The 'exemption' may require the 'statutory declaration' and the 'proof of relationship'.

For the state stamp duty rates and the thresholds, see the relevant 'state revenue office' website.

FBT on Employer Gifts

  • Property fringe benefit: The 'employer-provided gift' to the 'employee' is the 'property fringe benefit'. The 'FBT rate' is 47%. The 'taxable value' is the 'cost' of the 'gift' to the 'employer'.
  • $300 minor benefit exemption: The 'minor benefit exemption' applies if the 'gift value' is less than $300 and the 'gift' is 'infrequent' and 'not part of the salary packaging arrangement'. The 'Christmas gift' and the 'birthday gift' may be 'exempt from the FBT'.
  • Gifts to the clients: The 'gifts' to the 'business clients' (the 'entertainment' and the 'promotional items') are generally 'deductible' as the 'business expenses' under the 'Section 8-1 of the ITAA 1997'.

For the FBT exemptions and the otherwise deductible rule, see our Fringe Benefits Tax Guide →.

Related Guides

Australia Tax Treaties Guide (Double Tax Agreements, Withholding Rates, Treaty Benefits, Exchange of Info)Australian double tax treaties — the 'Australian DTAs' with the '45+ countries', the 'treaty withholding rates on the dividends, interest, and royalties', and the 'treaty benefits' for the 'foreign reSenegal Tax Residency Guide 2026 — 183-Day Rule, Permanent Home, Territorial Sourcing, DTTsSenegalese tax residency. 183-day physical presence test, permanent home criterion, territorial sourcing rules, double tax treaties with France, Tunisia, Morocco, and others for 2026.Indonesia Wealth Tax Guide 2026 — No Wealth Taxexplaining the absence of wealth tax in Indonesia. No net worth tax, no annual property tax (only PBB at ~0.1–0.2% effective), no luxury tax on assets, no solidarity tax for 2026.Hong Kong Corporate Tax Guide: Profits Tax 8.25%/16.5%, Territorial PrincipleHong Kong Profits Tax — 8.25% on first HKD 2M, 16.5% above, territorial source principle, offshore claims, no withholding tax on dividends, no capital gains tax. Essential for businesses.Croatia Personal Income Tax Guide 2026 — Progressive IIT 0–45.5%Croatian personal income tax (IIT) — progressive rates 0–45.5% including city surcharge, EUR 4,200 personal deduction, child allowance EUR 2,640 per child, and filing requirements for 2026.Armenia Corporate Tax Guide 2026 — CIT 18% Standard, 0% IT Sector, 0% Small BusinessArmenian corporate income tax. Standard CIT 18% for resident companies, 0% for certified IT companies, 0% for small businesses under AMD 24M turnover, branch taxation, capital allowances, and loss car
Browse all guides →