How inheritance tax works in Australia
Australia abolished death duties decades ago. There is currently no federal inheritance tax or estate tax on the simple transfer of assets at death.
That does not make succession tax-free in every sense. Superannuation death benefits paid to non-tax dependants can be taxed. Beneficiaries may also inherit cost bases that create CGT when they later sell the asset.
Discretionary trusts and estate planning structures are under ongoing policy attention, so families using trusts should keep current with integrity measures even though no classic inheritance tax exists.
Tax rates at a glance
- Estate / inheritance tax
- 0%None
- General gift tax
- 0%
- Super death benefits
- Can apply
- Later CGT on inherited assets
- Possible
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
FamiliesExpatsInvestorsBusiness ownersRetirees
Watch out for
- “No inheritance tax” is true at the federal estate-tax level, but super and CGT can still create real tax around death.
- Cross-border estates can still face foreign inheritance taxes even when Australia does not charge one.
- Trust and estate administration costs, stamp duty on some transmissions and state rules can still matter.
- Policy debates about inheritance tax resurface periodically; current law remains no general death duty.
Frequently asked questions
Does Australia have inheritance tax?
No. Australia does not currently impose a federal inheritance tax or estate duty.
Are inheritances completely tax-free in Australia?
Not always. Superannuation death benefits and later capital gains tax on inherited assets can still create tax.
Does Australia tax gifts?
There is no general gift tax, but some transfers can still have CGT, stamp duty or social-security consequences.