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We want to help our son buy a house. Should it be a gift or a loan?

Noel Whittaker Money columnist October 29, 2025 — 5.01am

My wife and I downsized recently and topped up our super. We do not get any government assistance and survive on our allocated pension from our super. We have decided to help our son and his wife buy their first home and were wondering if we would have to pay “gift” tax? If so, should we draw up a loan agreement to avoid this cost?

There is no gift tax in Australia. The big decision for you is whether this is to be a gift or a loan. There is no easy answer because some people prefer to make it a gift and leave it at that.

My wife and I have long believed that “a gift given is a gift given”, and money give

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