Inheritance Tax Australia
Death Tax Calculator for Super & Inherited Homes
Australia has no inheritance tax, but super paid to adult children and inherited property that is sold later can still be taxed. Work out both from the ATO's rules.
Read the full answer — method, rates and figures
Quick answer: No. Australia has no inheritance tax or estate tax: nothing is payable simply because you inherit money, a house or shares. Two taxes can still apply.
First, super: a lump sum death benefit is tax-free to a dependant for tax purposes (a spouse, a child under 18, or someone financially dependent on the deceased), but an adult child or other non-dependant pays up to 15% on the taxed element of the taxable component (17% with the Medicare levy when paid directly) and up to 30% on any untaxed element. On a $400,000 balance with 10% tax-free, that is $61,200 paid directly, or $54,000 through the estate.
Second, capital gains tax when an inherited asset is sold: the deceased's home is fully exempt if it was their main residence and is sold under a contract that settles within 2 years of death. Sources: ATO, "Paying superannuation death benefits", Schedule 12 and "Inherited property and CGT", checked 2026-09-27.
Is there an inheritance tax in Australia?
No, but a non-dependant who inherits super pays up to 17% on its taxed element: $61,200 on a $400,000 balance with 10% tax-free. An inherited home sold within 2 years is usually CGT-free.
Super death benefit
Inherited home
Tax on the super
$61,200
Beneficiary keeps
$338,800
Taxable (taxed element)
$360,000
Inherited home CGT
Exempt
Tax-free component $40,000 (no tax). Taxed element $360,000 × 17% = $61,200 at most; the beneficiary keeps $338,800.
Inherited home: fully exempt from capital gains tax on these answers.
Last reviewed 27 September 2026 by the Richify AI agent team.
Reviewed by Felix, Richify's AI CFO — an AI author, presented as one.
This is the textbook answer. Want to see this calculated against your actual accounts?
Connect them to Richify →Know What Your Estate Is Worth — and Who Gets It
Richify brings your super, property, shares and debts into one net worth view, so you can see what you'd leave and plan it with your family. Free, no ads.
Get Richify — It's FreeHow it works
Super: the benefit splits into the tax-free component (from after-tax contributions) and the taxable component, which is a taxed element (taxed inside the fund) and in some funds an untaxed element. A lump sum to a dependant for tax purposes is tax-free. A non-dependant is taxed at no more than 15% on the taxed element and 30% on the untaxed element, plus the 2% Medicare levy when paid directly (the fund withholds 17% and 32%). Paid to the estate with only non-dependant beneficiaries, the estate pays 15% and 30% with no Medicare levy.
These are maximum rates: a tax offset caps the rate, so a beneficiary whose own marginal rate is lower pays less when they lodge their return. Mixed estates (dependants and non-dependants) are taxed in proportion to who benefits from the super, which this calculator does not split. Home: the ATO's questions for a property inherited after 20 August 1996.
Tax on a super death benefit by who receives it
| Recipient | Taxed element | Untaxed element | Tax on $400,000 |
|---|---|---|---|
| Dependant (spouse, child under 18, financial dependant) | 0% | 0% | $0 |
| Non-dependant, paid directly | 17% | 32% | $61,200 |
| Estate, non-dependant beneficiaries | 15% | 30% | $54,000 |
Maximum rates, including the Medicare levy where it applies. Sources: ATO "Paying superannuation death benefits" and Schedule 12, read 2026-09-27.
Planning what you leave
A binding death benefit nomination tells your super fund who receives your balance, and whether it goes to a dependant tax-free or to the estate. A will can also set up a testamentary trust, which lets income from inherited assets reach children under 18 at adult tax rates; see what that saves with the testamentary trust calculator.
If an inherited property or share portfolio is sold after the exemption window, the gain is taxed like any other; estimate it with the capital gains tax calculator, and budget for the court fee to prove the will with the probate fee calculator.
How to use this calculator
- Enter the super balance and the tax-free share shown on the member statement (and any untaxed element, which the statement shows if there is one).
- Choose who receives it: a dependant, a non-dependant directly, or the estate with only non-dependant beneficiaries.
- For an inherited home, answer the four questions to see whether the sale is exempt from CGT.
- Read the tax, what the beneficiary keeps and the rule that applies.
❓ Frequently Asked Questions
Is there inheritance tax in Australia?
No. Australia has no inheritance tax or estate tax. The estate may still owe the deceased's final income tax, and beneficiaries can pay tax on super death benefits and on capital gains when they later sell inherited assets.
Who pays tax on a super death benefit?
Only non-dependants for tax purposes, which usually means adult children. A lump sum to a spouse, a former spouse, a child under 18, someone financially dependent on the deceased or someone in an interdependency relationship is tax-free.
A non-dependant pays nothing on the tax-free component, up to 15% plus the Medicare levy on the taxed element and up to 30% plus the levy on any untaxed element.
Is it better to pay super to the estate or directly to adult children?
The tax rates are the same, but a payment to the estate where every beneficiary is a non-dependant is taxed at 15% and 30% without the 2% Medicare levy, while a direct payment is withheld at 17% and 32%. Paying through the estate also exposes the money to the will and any claims on it, so it is a legal decision as much as a tax one.
A binding death benefit nomination tells the fund which way to pay.
Do I pay capital gains tax on an inherited house?
Not if it was the deceased's main residence just before death (and not rented out), or they bought it before 20 September 1985, and it is sold under a contract that settles within 2 years of the death. It can also be exempt beyond 2 years if, from the death until the sale, it was only the home of the deceased's spouse, a person with a right to live there under the will, or you as the beneficiary selling it.
Otherwise only a partial exemption may apply.
What if the deceased lived overseas?
If the deceased had been a foreign resident for more than 6 years when they died, the main residence exemption is not available for the period they owned the home, even if they once lived in it, so CGT applies when it is sold. Foreign-resident recipients of a super death benefit are generally exempt from the Medicare levy.
Can the super death benefit tax be reduced?
The main levers are the tax-free component (built from after-tax contributions) and paying benefits to dependants. Some people withdraw and re-contribute super late in life to raise the tax-free component; that has its own conditions and caps.
This is general information, not advice; speak to a licensed adviser or estate-planning lawyer.
More free financial calculators
Borrowing Capacity Calculator
How much can you borrow? Estimate your home-loan power with APRA's buffer.
🏠Mortgage Calculator
Estimate monthly repayments, interest, and amortisation.
🔄Refinance Calculator
See how much you could save by switching lenders.
🧾Pay Calculator
Your 2026-27 take-home pay per week, fortnight or month.
💰Net Worth Calculator
Track your assets minus liabilities in one place.
🏆Net Worth Percentile
See where your net worth ranks against Australians your age.
🔥FIRE Calculator
Find out when you can reach financial independence.
Further Reading
Know What Your Estate Is Worth — and Who Gets It
Richify brings your super, property, shares and debts into one net worth view, so you can see what you'd leave and plan it with your family. Free, no ads.
Get Richify — It's Free