My wife and I propose giving each of our two adult daughters a cash gift of $100,000, and would like to know of any tax implications for them, or for us.  The ATO website seems to indicate that gifts may be taxable if they are large amounts.

ANSWER:

My accountant advises that a gift from parents to children out of natural love will not normally meet the criteria for taxable gifts according to ordinary concepts.  The Tax Office website is probably referring to artificial situations where a person may make a substantial gift in lieu of a contracted payment that would be liable for tax in the hands of the recipient.