Inheritance Tax Australia | What Tax Do You Actually Pay When You Inherit?
No inheritance tax in Australia since 1979. But inherited property, superannuation, or investments can still trigger CGT, death benefits tax, or estate income tax. We explain what applies and how to reduce it.
Australia Does Not Have an Inheritance Tax
The short answer to "Is there inheritance tax in Australia?" is no. Australia abolished its federal estate duty in 1979 and all state-based death duties by 1982. There is no inheritance tax, no estate tax, and no death duty currently levied in Australia at either the federal or state level.
However, inheriting assets in Australia can still create real tax obligations that many beneficiaries do not know about until they receive an unexpected tax bill or ATO notice. The taxes that can apply are:
- Capital gains tax on inherited property, shares, or other assets when you eventually sell them
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- Superannuation death benefits tax on the taxable component of super paid to non-dependent beneficiaries
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- Income tax on income earned by a deceased estate during administration
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- CGT on certain asset transfers from a deceased estate to non-exempt beneficiaries
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- You don’t have to close. There’s another way.
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At The Kalculators, our Adelaide tax team advises beneficiaries, executors, and estate trustees on all tax obligations that arise when someone passes away. We coordinate with your individual tax returns, SMSF administration, wealth management, and financial planning arrangements so estate tax is never handled in isolation.
What Is Inheritance Tax in Australia?
Inheritance tax is a tax levied on the value of assets left by a deceased person. Australia abolished federal estate duty on 1 July 1979 and all state death duties by 1982. The ATO does not levy an inheritance tax. When you inherit money or assets, you do not pay tax simply because you received an inheritance. The tax issues arise later, depending on what you inherited, who you are in relation to the deceased, and what you do with the assets.
Periodically, politicians and commentators propose reintroducing an inheritance or estate tax in Australia. As at May 2026, no such tax exists and no legislation to introduce one is before the Parliament.
Our Estate and Inheritance Tax Services in Adelaide
Inheriting assets creates tax obligations that most people encounter only once or twice in their lifetimes. We manage the full scope, from calculating CGT and lodging deceased estate returns to advising on super death benefits tax and pre-death planning strategies that reduce what your family will owe.
Capital Gains Tax on Inherited Assets
Tax only arises when you sell the inherited asset, not when you receive it. We calculate CGT on every inherited property, share, or investment disposal and apply all available concessions and exemptions correctly.
Superannuation Death Benefits Tax Advice
Non-dependent adult children pay up to 17% tax on inherited super on a $500,000 balance that is $85,000. We advise on nomination structures and strategies that reduce or eliminate this liability before death.
Deceased Estate Tax Returns
A deceased estate is a separate taxpayer during administration. If the estate earns rental income, dividends, or interest before distribution, it must lodge a tax return. We handle this for Adelaide executors.
Inherited Property CGT Advice
Selling inherited property has different CGT rules from selling an investment property you purchased yourself. We advise on the correct cost base, the two-year main residence window, and timing before you sell.
Estate Planning and Tax Minimisation
Super nominations, testamentary trusts, asset transfers, and pension phase management can significantly reduce what beneficiaries owe. Planning before death creates options that simply do not exist after it.
Testamentary Trust Advice
Income from a testamentary trust is taxed at adult marginal rates even when distributed to minor beneficiaries, which is a significant advantage over a standard family trust. We advise on structure and tax implications.
Don't Just Take Our Word For It
Lily H.
Adelaide, Australia
We had no idea the super my father had left to me would be taxed when I received it as an adult child. The Kalculators explained the super death benefits tax, helped us review the nomination structure for other family members, and ensured everything was handled correctly. We wish we had spoken to them before he passed.
What Tax Do You Actually Pay When You Inherit in Australia?
Most Australians assume inheritance is tax-free. In reality, CGT on property and shares, up to 17% tax on inherited super, and income tax on earnings from inherited assets can significantly reduce what you actually receive. The rules are different for each asset type:
- Inheriting Cash or Bank Accounts No tax is payable when you receive inherited cash. Any interest earned on the money after it comes into your hands is assessable income in your tax return from that date.
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- Inheriting Property You do not pay tax when you inherit property, only when you sell it. The 50% CGT discount applies if you sell after holding for more than 12 months from the date of death.
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- Inheriting Shares and Investments No tax when you inherit shares or investments. CGT applies when you sell. Pre-CGT assets acquired by the deceased before 20 September 1985 are fully exempt regardless of value.
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- Inheriting Superannuation Non-dependent adult children pay up to 17% tax on the taxable component of inherited super. On a $500,000 balance, that is an $85,000 tax bill. Strategic planning before death can significantly reduce this.
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- Inheriting Business Assets Inherited business assets may qualify for the 15-year exemption, the 50% active asset reduction, the retirement exemption, or rollover relief, individually or in combination, reducing or eliminating CGT entirely.
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South Australia's Trusted Estate and Inheritance Tax Advisers
Founded by Kaleem Ullah, The Kalculators was built on a clear belief: every South Australian deserves access to accurate tax advice when they need it most, including at a time as stressful as managing a deceased estate or dealing with an unexpected inheritance tax bill.
With 3 Adelaide offices and online service across South Australia, 20+ qualified consultants, and IPA Practice of the Year (SA and NT 2025), The Kalculators has the depth and the team to advise on inheritance and estate tax matters of every complexity.
IPA Practice of the Year
(SA & NT – 2025)
Xero Gold Partner
AusMumpreneur Awards
– Business Excellence
Member of the Year 2019 –
Institute of Public Accountants
Member of the Year 2025 –
Institute of Public Accountants
Tax Practitioners Board
Registered Agent
Australian Accounting
Awards (2019)
Australian Accounting
Awards (2020)
Australian Accounting
Awards (2021)
0k+
Returns Annually0+
Tax Consultants$0M+
In Claimed Deductions0+
Office LocationsWhy Adelaide Clients Choose The Kalculators for Estate and Inheritance Tax Advice
- Accurate, up-to-date knowledge of CGT on inherited assets, super death benefits tax, and deceased estate tax obligations
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- Full in-house service — CGT calculations, super advice, deceased estate returns, and testamentary trust tax handled by one integrated team
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- No outsourcing — the accountant you speak to manages your matter from start to finish
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- Super death benefit tax minimisation — we advise on nomination structures that reduce the tax payable by non-dependent beneficiaries on large super balances
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- Inherited property expertise — main residence exemption, two-year sale window, cost base rules, and 50% CGT discount applied correctly
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- Executor support — deceased estate tax returns, income during administration, and final distribution tax advice
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- Estate planning integration — coordinated with your wealth management and financial planning arrangements
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- Transparent fees — clear pricing agreed upfront before you commit
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3 Adelaide offices and online service across South Australia, with after-hours appointments. Find your nearest office
Inheritance Tax Situations We Advise On Across South Australia
Inherited property, superannuation, shares, and business assets each follow different tax rules under ATO guidelines. We work with beneficiaries and executors across South Australia to ensure every asset is handled correctly, every concession is applied, and every return is lodged on time.
Inherited Investment Property
Cost base rules, main residence exemption, the two-year sale window, 50% CGT discount eligibility. See our property investor tax return page for more.
Inherited Superannuation
Super death benefit tax on non-dependent beneficiaries, recontribution strategies, and SMSF pension phase planning. See our SMSF administration page for more.
Inherited Shares and Managed Funds
Cost base determination, pre-CGT asset identification, market value assessment at date of death, and CGT calculation on subsequent disposal.
Deceased Estate Administration
Tax returns for the deceased and for the estate during administration. See the ATO deceased estates hub for the full framework.
Inherited Business Assets
Small business CGT concession assessment. See our capital gains tax page for the four concessions in detail.
Testamentary Trusts
Tax advice on testamentary trust elections, income distribution, and annual trust tax return preparation. See our family trust tax return page for context.
Trusted by Thousands Across South Australia
Our Branch Locations
Salisbury Branch
salisbury@thekalculators.com.au
182 Salisbury Highway, Salisbury, SA 5108
Frequently Asked Questions
Need Help With Inheritance Tax or a Deceased Estate? Talk to Adelaide's Estate Tax Accountants Today.
With 3 Adelaide offices and online service across South Australia, Monday to Friday 9:00 am to 6:00 pm, and an integrated accounting, SMSF, and financial planning team, we make estate and inheritance tax straightforward for South Australian families. Our services extend across
individual tax returns, capital gains tax reporting, SMSF administration, wealth management, and financial planning.
Contact our team today for a no-obligation consultation.
