I am considering purchasing a residential property for a family relative, who would stay there and contribute towards the bond repayments. However, I would not live on the premises. From a tax perspective, what is the correct approach to avoid my relative's contributions being viewed as rental income?
The contributions would effectively be "rental" income. However, you would be able to off-set the interest on the bond and other property related expenses (e.g. rates, electricity etc) so as to reduce the taxable income as far as possible.