Australia has no inheritance tax — but inherited assets can trigger CGT and super death benefits tax. Calculate the potential tax implications before selling inherited assets.
No inheritance tax in Australia | CGT may apply on sale | Super death benefits taxed | Updated 2025-26
✅ Australia Has No Inheritance TaxUnlike the UK, USA and many countries, Australia abolished inheritance tax (death duties) in 1979. There is no tax on receiving an inheritance. However, when you eventually sell inherited assets (property, shares etc.), capital gains tax (CGT) may apply. And super death benefits paid to non-dependants are taxed.
🏛️ Your Inherited Assets
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What the deceased paid + improvements (CGT cost base resets to market value at death for pre-CGT assets)
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Super paid to non-dependants (adult children) is taxed. Spouse/minor children receive tax-free.
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Estimated Total Tax on Inherited Assets
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CGT on property
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CGT on shares
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Super death tax
📋 Tax Breakdown
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Australia Has No Inheritance Tax — But Here Is What Is Taxed
Australia abolished death duties and inheritance taxes in 1979 — making it one of the few developed nations without them. However, several taxes can arise when inherited assets are sold or distributed, and many Australians don't realise this until they receive an ATO notice after settling an estate.
Capital Gains Tax on Inherited Property
When you inherit property and later sell it, CGT may apply. The rules depend on when the deceased bought the property:
Pre-CGT property (purchased before 20 September 1985): Cost base resets to market value at date of death — typically no CGT on inherited pre-CGT assets if sold within 2 years
Post-CGT property (purchased after 20 September 1985): You inherit the deceased's cost base. CGT applies on the gain from that cost base to your sale price
Main residence exemption: If the property was the deceased's main residence and you sell within 2 years of death, the main residence exemption may eliminate CGT entirely
Super Death Benefits Tax
Super paid to tax dependants (spouse, de facto partner, minor children under 18, financially dependent adult children) is tax-free. Super paid to non-dependants (adult children who are financially independent) is taxed at 17% (15% tax + 2% Medicare levy) on the taxable component.
Estate and inheritance tax rules are complex. This calculator provides general guidance only. Consult a solicitor, tax agent or financial adviser for your specific situation. Not legal or tax advice.
Frequently Asked Questions
Does Australia have an inheritance tax?
No. Australia abolished inheritance tax (death duties) in 1979 — first in Queensland, then nationally. There is no tax on receiving an inheritance, regardless of the amount. However, when you sell inherited assets, capital gains tax (CGT) may apply. And superannuation paid to non-dependant beneficiaries is taxed at 17%.
Do I pay CGT when I inherit a house in Australia?
You don't pay CGT on receiving the house. CGT only applies when you sell it. If you sell within 2 years of the deceased's death and it was their main residence, you may be fully CGT-exempt. If you keep it longer, hold it as an investment, or the deceased held it as an investment property, CGT will apply on any gain from the inherited cost base to the sale price.
Is superannuation included in a deceased estate in Australia?
Superannuation does not automatically form part of the deceased estate — it is distributed according to the super fund's trustee rules and any binding death benefit nomination. Super paid to a tax dependant (spouse, minor child, financially dependent person) is tax-free. Super paid to non-dependants (adult children) is taxed at 17% on the taxable component. Without a binding nomination, the trustee decides who receives the super.